RI wants closer ties with Russia<\/p>\n
Agencies, Jakarta<\/p>\n
After years of fluctuating bilateral relations with Russia,
\nPresident Megawati Soekarnoputri on Tuesday called for a new
\nbeginning, hoping to boost bilateral trade, which has averaged a
\nmere US$120 million annually for the last five years.<\/p>\n
Speaking at a Russian-Indonesian business forum in Moscow,
\nMegawati said that Indonesia had to start from the beginning to
\nimprove relations with the former communist state.<\/p>\n
Megawati, who arrived in the Russian capital on Sunday for a
\nfive-day visit, told the forum that \"one of the main goals of my
\nvisit is the desire to help further direct contacts between our
\ntwo countries in the business sphere.\"<\/p>\n
Indonesia exports far more to Russia -- around $139 million
\nworth last year -- while Russian exports to Indonesia stood at
\njust $31 million in 2002.<\/p>\n
\"Our relations have gone through periods of ups and downs,\"
\nshe was quoted by RIA Novosti news agency.<\/p>\n
She added that trade remained low, in part because of the
\n1997-1998 Asian financial crisis and Russia's 1998 financial
\nmeltdown.<\/p>\n
Megawati's visit to Moscow is the first by an Indonesian head-
\nof-state since authoritarian ruler Soeharto visited Russia in
\n1989.<\/p>\n
Indonesia's founding president Sukarno, Megawati's father,
\nbuilt close ties with Russia in the 1950s.<\/p>\n
Megawati signed an arms agreement with Russian President
\nVladimir Putin on Monday amid media reports that she was expected
\nto seal the purchase of four Russian-made Sukhoi fighter planes
\nworth between $100 million and $120 million.<\/p>\n
After receiving an honorary degree from Russia's top state
\nforeign policy university on Tuesday, Megawati toured Sukhoi's
\nresearch centre and airfield outside Moscow and witnessed a test
\nflight of the Russian aerospace firm's SU-27 jet fighters.<\/p>\n
Since 1999, Indonesia has been under a U.S. military embargo
\nthat Washington refuses to lift until Indonesia comes clean on
\nthe military's backing of militia violence in East Timor the same
\nyear.<\/p>\n
Minister of Industry and Trade Rini M.S. Soewandi said at the
\nsame forum that clinching the jet fighter deal \"will be a great
\nsuccess for our countries,\" adding that Russia's government arms
\ntrade agency Rosoboronexport and Indonesia's State Logistics
\nAgency (Bulog) would handle the deal.<\/p>\n
Separately, legislators at the House of Representatives gave
\nmixed reactions to the government's decision to purchase military
\nequipment from Russia, as part of its efforts to diversify its
\narms sources.<\/p>\n
Permadi from the Indonesian Democratic Party of Struggle (PDI
\nPerjuangan) said the plan to purchase Sukhoi-27 and Sukhoi-30 jet
\nfighters and Mi-35 helicopters was a bold decision.<\/p>\n
Legislators from the Reform faction, however, urged the public
\nto scrutinize the deal, while Reform faction chairman Ahmad
\nFarhan Hamid and legislators Djoko Susilo and Mashadi criticized
\nthe deal for not being transparent.<\/p>\n
They said the Sukhoi jet fighters offered to Indonesia at $35
\nmillion each was higher than the market price of between $15
\nmillion to $20 million.<\/p>\n
\"The purchase should follow standard procedures,\" Farhan said.<\/p>\n
Standard procedures require that any plans to purchase
\nmilitary equipment should first be proposed by the Indonesian
\nMilitary (TNI) to the Ministry of Defense, which would then seek
\napproval from the House.<\/p>\n
According to Farhan, Djoko and Mashadi, the plan to purchase
\nmilitary equipment from Russia had never been discussed with the
\nHouse's defense commission.<\/p>\n
The legislators also questioned the number of jet fighters to
\nbe purchased from Russia. Instead of purchasing one squadron or
\n12 fighters, Indonesia planned to buy two Sukhoi-27, two Sukhoi-
\n30 jet fighters, and two Mi-35 helicopters.<\/p>\n
\"It is unusual. This shows that the Indonesian Air Force has
\nno good procurement strategy,\" he added.<\/p>\n
A similar concern was also voiced by a deputy to the
\ncoordinating minister for the economy, Dipo Alam.<\/p>\n
Although the military purchase would be made with a counter-
\ntrade or a joint venture scheme, Dipo suggested that the
\ngovernment prepare money to finance the commodities for the swap.<\/p>\n
He warns that the government should be ready for the worst, in
\ncase the proposal for the new funding to purchase local
\ncommodities is rejected by the House.<\/p>",
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