Export Contracts from US to Pindad

JAKARTA, KOMPAS.com - Indonesia’s arms and ammunition producer PT Pindad has concluded order contracts for arms  worth Rp1.3 trillion in 2010, up compared to last year’s Rp900 billion, the firm’s president director said.      "Up to September this year, we have secured contracts worth Rp1.3 trillion. We will still have more contracts up to the end of the year," Pindad President Director Adik Soedarsono said on the sidelines of Indonesia Business-Bumn (state firms) Expo and Conference (IBBEX) here on Sunday.      He said that based on his company’s budget work plan (RKAP), the value of its contracts was set at Rp1.1 trillion but it was able to increase its contracts with additional ones worth up to Rp200 billion. Of the total contracts, Pindad also won orders for the production of explosives.

"Our customers usually came from mining firms which would use the materials in Sumatra and Kalimantan," he said.      The biggest contracts won by Pindad came from the Defense Ministry with a value of  Rp900 billion. The defense ministry ordered for Rp80 million tons of bullets this year.

"The orders from the defense ministry continued to increase. In 2009 it ordered for bullets worth Rp650 billion," Adik said.      Besides contracts ordered by customers at home, Pindad also won contracts ordered by overseas customers.      "Pindad is carrying out export contracts from the United States which were obtained in November 2009 in the form of 20 million tons of bullets," he said.      In 2010, Pindad sets itself an income target of Rp1.2 trillion.     "We are optimistic that the target would be achieved because Pindad was able to earn an income of Rp600 billion up to the first semester of this year," he said.      This year, the company allocated a budget of Rp50 billion in capital expenditure for the purchase of seven new and larger capacity machines from Germany and France.