Indonesian Political, Business & Finance News

House to summon Bulog chief over Sukhois

| Source: JP

House to summon Bulog chief over Sukhois

Kurniawan Hari, The Jakarta Post, Jakarta

House of Representatives Commission I for defense and foreign
affairs will summon Minister of Industry and Trade Rini Soewandi
and State Logistics Agency (Bulog) chief Widjanarko Puspoyo to
shed light on the countertrade deal for the Russian Sukhoi jet
fighters.

During a state visit to Russia late April, President Megawati
Soekarnoputri signed a memorandum of understanding on the
purchase of four Sukhoi fighters and two MI-35 helicopters to
beef up the country's security.

While recognizing the importance of the Sukhoi fighters for
the country's defense, commission members charged that the
purchase did not follow normal procedure.

"We will seek information from the minister of industry and
trade and the Bulog chief," said Ibrahim Ambong following a
hearing with Indonesian Military (TNI) chief Gen. Endriartono
Sutarto here on Monday.

During the five-hour hearing, several legislators criticized
the purchase of the Russian jets through a countertrade, saying
the process was not transparent.

The legislators said the government did not inform the House
of its intention to purchase the Sukhois, and that the House only
learned of the deal when President Megawati had already signed
the memorandum of understanding during her visit to Russia last
month.

Endriartono refused to give a detailed explanation of the
issue, saying the military was just the "end user" of the jet
fighters, while the purchaser was Bulog.

Based on a contract between TNI, Bulog and Russia, the total
cost of the four Sukhoi jet fighters and two MI-35 helicopters
was US$192.6 million.

That cost includes the financing for support equipment, pilot
training and mechanic training.

According to Endriartono, Indonesia made the down payment
(13.5 percent of the total cost) in cash, while the remaining
will be paid with 30 commodities, including palm oil and rubber.

"The money spent for those commodities will be taken from the
general allocation fund (in the state budget)," the military
chief said.

Meanwhile, Air Force chief Marshal Chappy Hakim said on Monday
the four Sukhoi jet fighters were still in standard condition,
with no weaponry.

Chappy said the purchase of the Sukhois would help the
Indonesian Military reduce its dependence on the United States,
which continues to impose a military embargo against Indonesia.

According to Chappy, 98 percent of the country's defense
equipment was made in the U.S.

"Until today, the embargo is still in effect. Our defense
equipment will all be in need of repair in the next few years,"
Chappy said.

He said the purchase of the Sukhois would also enable TNI to
conduct joint military exercises with Malaysia, which earlier
purchased one squadron of Sukhoi jet fighters.

Separately, President Megawati said the purchased Sukhoi jet
fighters and MI-35 helicopters from Russia would replace
obsolete military equipment, Antara reported.

She made the statement during a visit to the Air Force Academy
in Yogyakarta on Monday.

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