Thu, 03 Jul 1997

Indonesia may barter for Russian fighters

JAKARTA (JP): Indonesia's decision to buy jet fighters and other military hardware from Russia now appears to hinge only on financial arrangements, including the possibility of a barter.

The state minister for national development planning, Ginandjar Kartasasmita, said the government was still trying to find ways to solve the payment question.

The Air Force's chief of staff, Marshal Sutria Tubagus, has said Indonesia's air force was technologically able to use Russian fighters.

Sutria inspected Russian fighter jets at last month's Paris Air Show.

"Russia does not provide export credit like Western countries, so we are considering the counter-purchase system," Ginandjar said.

He did not say what products Indonesia might barter for Russian military equipment.

"The potential is there, but the deal could also be carried out using funds from other sources," said Ginandjar, who is a retired Air Force Vice Marshal.

He said there would be no problems getting spare parts for the jets because Russian fighters were used by many countries including Vietnam, China and India.

"We have taken the issue of spare parts into consideration," he said.

Indonesia has expressed its interest in buying Russian Sukhoi- 30 and MiG-29 fighters, as well as radars, guided missiles and helicopters.

Several Indonesian delegations have visited Russia to follow up on the negotiations which started in February when a Russian team came to Jakarta with the initial offer.

Negotiations with Russia gathered momentum after Indonesia canceled its plan to buy nine F-16 fighters from the United States in May.

The decision, taken by President Soeharto, was in response to U.S. congress criticism of Indonesia over human rights and East Timor.

The Indonesian Air Force's fighter fleet includes F-16s, F-5s, and recently acquired Hawks.

In 1986, Indonesia chose the F-16 over French Mirage-2000 fighters after Washington provided attractive export credit to finance the deal.

As part of the deal Indonesia's state-owned aircraft company, PT IPTN, has received orders to build parts for F-16 planes.

IPTN's president, B.J. Habibie, is reportedly planning to visit Moscow this month to further assess Russia's military equipment. (06)