Analysis of the aircraft manufacturer IPTN, an Indonesian state-owned company

Abstract

This thesis deals with Indonesia's state-owned aircraft manufacturer, IPTN. The objective of the thesis is to analyze trends in IPTN's investment. In particular, it analyzes the impact of IPTN's capital formation over the 1976 - 1992 period on Indonesia's GDP. First a brief description of IPTN's background and Indonesia's economic condition is presented. Second, an assessment is made as to why IPTN should have strategic planning to compete in the international market. Third, based on econometric analysis, IPTN's prospects for the future are examined. As is typical with econometrics, the data is incomplete; however, a trend can be identified. The model used shows that the government's investment in IPTN does not appear to have a significant impact on Indonesia's economic growth, as measured by GDP. Finally, recommendations for IPTN are made, including accepting foreign and private investors and utilizing a niche marketing strategy. A strategic planning program for international marketing is also outlined.