I remembered in early 90's, Habibie come to my Allmamater to give lecture on IPTN and overall Strategic Industries. His emphasis when give lecture in my Allmamater was different then what he gave during his lecture in his own Allmamater in Bandung. In Bandung he emphasis more on Technology achievement, while in Salemba he's emphasize more on how making the strategic Industry as viable commercial company.
Perhaps because the Technocrats from my Allmamater was already very concerned on how long the Government need to keep pumping money to the strategic Industry including his crown jewel IPTN. At the same time they're still not see a way out from those companies to be commercially viable on their own.
So from beginning IPTN or now DI already been design for both strategic needs (thus Military needs), but in the same time has to be commercially viable. For that Habibie choose dual function aircraft that can be used in both Military and Commercial needs. His partnership with MBB for BO-105, Aerospatiale Super Puma, and Casa for C-212 and CN-235 were actually considered good move by the Financials and Economics technocrats.
However he then manage convince Soeharto for big Investment on N-250, when IPTN was not settle yet. He should create enough market volume first and gain good market reputation, to make IPTN commercially viable. That's what Embrear do. Embrear toward their own history try to create step by step move and not jump before ready.
Jumping to larger projects without you're ready, is the formula that create messed with HAL in India. HAL should be competing with Embrear now, as Technology wise they are capable. However unfocus order from various Indian Administration create HAL that in the end become institution that relied on Indian Military and Government projects, and not their own initiatives to become commercially viable aerospace company like Embrear.
Embrear also done Brazilian Military orders. They're also doing some Brazilian government initiative projects. However at the same time they are also trying and so far quite successful on gaining commercial market chunk. They keep looking to become commercially viable aerospace company first, while still keep doing Brazil strategic needs. Same thing like in Indonesia, Brazilian Military orders will not going be enough to make Embrear survive as commercial company. Same thing like Indonesia, Brazilian government also can't afford to keep pumping money to Embrear. That's why they float Embrear to the capital market, but after Embrear can shown market they're viable commercial Aerospace company.
Indonesia can't afford be like China that keep pumping money to AVIC or other various Aerospace company there. Indonesia also can't follow India's move with HAL. In fact with India now opening their aerospace Industry to private sector shown that some bureaucracy in India already see their strategy with HAL in the end will not be sustainable.
There's no excuse that because has to cater Military and Strategic needs, DI have difficulty to become viable commercial company. Embrear already shown as example that can be done both. What you need is good management, good strategy from your government, and in the end (and most importantly) try to become realistic and done step by step within your capabilities. Don't repeat jumping strategy being done by IPTN during Habibie's tenure.
Like I said several times, Habibie is brilliant engineer, however he's record as commercial CEO is not good (and I try to say it in polite way). He's Investing in N-250, with fly by wire system, something that Turboprop market didn't want that in that time. Making N-250 by many Aerospace analysts that time see become too costly to build, relative to what market willing to pay. Before N-250 ready, he jump to N-2130, which is as concept are good (we see it on Airbus 220, Embrear E Jets or Sukhoi Superjet). The problem he's doing it with an aerospace company that still only able to crawl, and still learning to walk.
In the end if Indonesia wants DI to become sustainable in Aerospace Industry, then it has to relearn everything on step by step again. N219 is good steep, but need to refrain DI for further Investment for N245 (for example) before they can achieve sustainable Production run and proven market acceptance for N219. They need to make N219 as cash cow first, before moving to next step on larger Turboprop. It's not the matter of Technology capabilities, but it's matter on commercial survivability.
If government and TNI wants DI to do Defense projects, then it has to come from outside DI budget and not be calculated to DI Investment. That's why Embrear separate their Military business from their commercial ones.
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