Complete Chronology Procurement MA60 Procurement MA60 aircraft it comprised several stages from 2002 to 2010.

VIVAnews MA60 plane-crash-owned Merpati Nusantara Airlines (MNA) caused a polemic that is related to the accident and the origin of the aircraft purchase MA 60. President Susilo Bambang Yudhoyono asked the relevant ministers the Minister of State-Owned Enterprises and the Minister of Transportation, explained it.

SOE Minister Mustafa Abubakar explained the chronology of the procurement of aircraft. Procurement of 15 aircraft production of Xi'an Aircraft International Company (XAC), it consists of several stages of the procurement from 2002 to finish 2010.

Stages consisted of stage assessments, the maturation process of procurement, delivery and use of aircraft in 2007-2009, price evaluation and contract amendment, renegotiations 2008-2010, and the last stage of the purchase.

Here's an explanation Mustafa at the Presidential Office, Thursday, May 12, 2011.

Assessment of procurement 15 MA-60 Aircraft
1. 2002. XAC start promoting the product MA-60.

2. Year 2005. In The 7th International Indonesia-China Joint Commission Meeting on Economic Trade and Technical Cooperation in Beijing, China, the Chinese government willing to provide concessional loans (loans with low interest rates) for the procurement of MA-60 aircraft.

3. 14 September 2005. Director of Operations of PT MNA convey the filing requirements for the purchase of MA-60 aircraft to the Chinese Embassy in Jakarta

4. 24 November 2005. President Director of PT MNA signed the MoU between PT MNA with XAC

Ripening of MA-60 Aircraft Procurement, and follow-up
1. March 3, 2006. Managing Director of PT MNA submit for approval a business plan to the State Minister for SOEs to be followed up to Bappenas and the Ministry of Finance

2. 22 Mai 2006. Managing Director of PT MNA begged State Enterprises Minister approval for the utilization of concessional loan facility from the Government of China for the procurement of 15 units of MA-60 for further processing at Bappenas

3. May 9, 2006. Certification type of validation for the MA-60 from the Directorate of Airworthiness and Aircraft Pengoperasional RI Department of Transportation.
4. June 7, 2006. Purchase Contract Signing between PT MNA with XAC to purchase 15 units of MA-60 aircraft with a total contract value of U.S. $ 232,443,799
5. 27 September 2006. Board of Commissioners of PT MNA supports procurement of 15 units of MA-60 aircraft through a concessional loan. State Enterprises Minister subsequently gives approval for procurement of 15 units of MA-60 aircraft through a concessional loan of U.S. $ 225 million, 15-year period, grace period of 3 years and a maximum rate of 3 percent per year.
6. 28 November 2006. PT MNA signed an MoU with XAC to rent 1 to 3 MA-60 aircraft.
7. May 22, 2007. Head of Bappenas agreed to finance the procurement of MA-60 aircraft from the SLA Loan of U.S. $ 232,444,000, and has been approved for inclusion in the blue book 2006-2009.
8. June 28, 2007. State Enterprises Minister Head of Bappenas related support 15 aircraft procurement plan MA-60 through schemes SLA Government of China.
9. August 5, 2008. Government concessional Loan Agreement for the Procurement of Aircraft for National Airbridge Project was signed between the Government of Indonesia through the Directorate General of Debt Management Department of Finance with representatives of the Chinese government and the Export-Import Bank of China.

Delivery of aircraft usage in 2007 and 2009
1. August 28, 2007. Delivery of the first MA-60 aircraft (2 units) with a pattern of operating leases. Certificate of acceptance signed by PT MNA on the same date
2. May 13, 2008. Managing Director of Loan Department of Finance to submit to the Director of Finance Ministry of Foreign Bilateral PPN / Bappenas about indications ability to return loans PT MNA in SLA.
3. August 19, 2008. XAC a letter to the president director of PT MNA assumes that the Contract of Sales effective August 5, 2008.
4. May 8 and August 12, 2009. Reports on the use of 2 units of MA-60 aircraft: "The occurrence of cracks on the holder shaft disorders vertical tail plane (rudder).
XAC party based on the consolidated PT MNA has changed the production process of the fastener rod vertical tail including replacing the material, which the Chinese civil aviation authorities approve the change and provide security and safety (documented in the service bulletin).
5. August 14, 2009. DGCA Director General reiterated that the MA-60 that were previously in-grounded in compliance with the airworthiness requirements based on the service bulletin.

Evaluation of Changes in Contract Price and in 2005 to 2006
1. June 7, 2006. Initial contract states the price for 1 unit of MA-60 aircraft and support equipment (including: airborne equipment, buyers optional equipment, training devices and training for crew and engineers) is U.S. $ 4.1 million.

2. 2008. The study team conducted Restructuring PT MNA PT PPA, MA-60 aircraft prices range between U.S. $ 11 to 12.5 million dollars.

3. 4 September 2008. Managing Director of PT MNA submit referrals to the Minister of Finance The Vice-President and Head of Bappenas that need to be a change from government to government (g to g) Loan Agreement based trading scheme to be G to G Loan Agreement with rental scheme (leasing) for the procurement of MA-60 aircraft.

4. August 27, 2008. XAC declare Purchase Contract has been effective, not to change the form of joint procurement of the original sale and purchase of aircraft to be leased, and the readiness of XAC to deliver another 13 aircraft.

5. 8 September and 12 September 2008. China Exim Bank to submit a letter to Finance Minister and Vice-President Kalla called for accelerating the process of SLA for the procurement of 15 aircraft-60 MA

6. 24 September 2008. Minister of state sent a letter to the Coordinating Minister for Economy, Finance, and Head of Bappenas convey to perform Negotiation Team included merenegosiasi aircraft price and guarantee reliability, and proposes the composition of the SLA of 50 percent and 50 percent additional PMN

7. October 16, 2008. XAC sent a letter to PT MNA for PT MNA stop operating two MA-60 aircraft. If up to 5 November 2008 failed to respond, XAC will file arbitration to SIAC

Renegotiation of 2008 to 2010
1. 13 November 2008. Restructuring Team of PT MNA sent a letter to XAC about the condition of PT MNA and ask for the change of terms and conditions that allow for PT MNA operates the MA-60 aircraft.

2. 14 November 2008. XAC told that 13 aircraft Restructuring Team MA-60 ready to be sent and already 4 months parked.

3. December 16, 2008, March 19, 2009, 15 April 2009, carried out renegotiation between the Chinese Government team and the team restructuring PT MNA.

4. 24 April 2009. Report on Negotiations of the Restructuring Team Leader PT MNA to Coordinating Minister for Economic Affairs / Minister of Finance, State Enterprises Minister and Minister of Trade:

a. Restructuring Team of PT MNA requested delivery time done in stages in accordance with the number of pilots (5 units in May 2009, each 2 units in June and July 2009, and each one aircraft per month from August to November 2009). Teams Government of China approved the delivery of the MA-60 aircraft at the latest until the end of September 2009).

b. Restructuring Team of PT MNA requested aircraft procurement costs reduced by U.S. $ 68 million to ensure the sustainability of PT MNA, because the selling price of the MA-60 aircraft to the government of Indonesia is considered too expensive. Teams Government of China is willing to send a letter to the minister about the price of a statement given to PT MNA is the best price.

c. Restructuring Team of PT MNA proposed the possibility of a fixed rate loan is given in Yuan-rupiah exchange rate. Teams Government of China considers to extend the loan from 15 years to 20 years.

d. Restructuring Team of PT MNA asks Tim Chinese Government issued a buyback guarantee Perfomance and associated aircraft performance during pengoperasikan and buyback price. Teams Government of China does not approve the proposal Perfomance guarantee long life because it is not in accordance with international standards as well as the aviation industry.

5. August 26, 2009. Approval of State Enterprises on business plans and corporate debt restructuring.

6. March 23, 2010. Letter of Deputy of the logistical and Tourism Minister of State Enterprises to the Head BPKP who asked BPKP perform compliance audits
over the procurement process MA-60 aircraft.

7. 9 April 2010. Audit Results Report BPKP, with the main points of recommendation:
a. Proposes to renegotiate the contract price
b. Propose to ask for collateral damage is unknown at this time and is expected to occur in 5 to 10 years.
c. Ensuring side letter to purchase contract of MA-60 aircraft to be an integral part of the contract.

8. 16 April 2010. Amandement to Purchase Contract of MA-60 Aircraft between PT MNA and XAC, with the main points as follows:
a. XAC full responsibility and provide guarantees for spare parts and aircraft components as well as MA-60 AIRWORTHINESS certification for 25 years from the date of delivery.
b. XAC buyback guarantee the value of the remaining aircraft in accordance with the MA-60 when the plane stopped operation due to failure of design or fabrication process and can not be repaired by XAC.
c. Price per unit plane into 11.206 dollars plus buyers optional equipment 800,000 dollars bringing the total to 12.006 million U.S. dollars per unit.
d. Side letter to Purchase Contract of MA-60 Aircraft (28 January 2010) became an integral part of the Purchase Contract Amendment.

9. 7 April 2010. MOU between PT MNA and PT Dirgantara Indonesia and XAC:
a. Between PT MNA and XAC, agreed PT MNA becomes the only thing to do maintenance and repairs for the regional through Pigeon maintanance Facilities (MMF).
b. Both sides also agreed to use the simulator provided by XAC to PT MNA (free of charge) for training pilots and engineers maintanance for Indonesian aviation industry and operators of MA-60 in Indonesia and regional
c. Between XAC and PT DI, cooperative research and development, development and marketing of Chinese products seater turboprop 50-60 and 21-44 seater turboprop PT DI products.
d. XAC agreed to make PT DI as a preferred supplier list for MA-60 simulator.
e. Exchange of experts from both sides
f. PT DI offers to XAC to service the MA-60 engine overhaul

10. March 22, 2010. Minister for SOES to ask Minister of Transportation to request for a technical inspection of the production process MA-60 aircraft in XAC factory.

11. 7 April 2010. Minister of Transportation to submit to the Minister of SOES that validation type certification activities have been conducted Directorate of Airworthiness and Operation of Aircraft Kemhub DGCA, with the issuance of type certificate validation No. AO66 dated May 11, 2010, Civil Aviation Safety Regulations have been in line with the provisions of international civil aviation organizations.

12. 16 April. The shareholders of PT MNA (Minister of State and PT Garuda) to approve forwarding a loan for the procurement of MA-60.
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