Mon, 25 Aug 1997

RI bidding to supply Sukhoi spareparts

JAKARTA (JP): Indonesia is sending a team to Moscow today to negotiate the purchase of 12 Sukhoi Su-30Ks, and bid for the right to manufacture the Russian company's spareparts.

Minister of Research and Technology B.J. Habibie said in Bandung over the weekend that the team would be led by Minister of National Development Planning Ginandjar Kartasasmita.

"President Soeharto has said that the Armed Forces' choice of Sukhois is worth weighing, provided Indonesia and Russia strike a deal on cost, terms of payment and trade exchange that benefits the two countries," said Habibie as quoted by Antara.

Senior officers from the Armed Forces, the Ministry of Trade and Industry, state-owned aircraft manufacturer PT IPTN, and the Agency for Technology Assessment and Application will accompany Ginandjar.

Separately, Minister of Trade and Industry Tunky Ariwibowo said Saturday that Indonesia would also offer non-oil commodities to Russia as part of the expected counter-trade deal in the aircraft procurement.

Tunky said the goods included coffee, rattan, rubber, canned fish, fertilizer, jeans, soaps, detergent powder, toothpaste, shoes and textiles.

The ministry's director-general of international trade, Djoko Moelyono, said that Russia was keen to obtain these consumer goods, which are in demand in international market, directly from their producer.

The balance of trade between the two countries is tipped in Russia's favor with Indonesia suffering a US$330 million trade deficit with Russia.

Tunky said the Ginandjar-led delegation would take samples of Indonesian products with them.

Ginandjar said earlier this month that Indonesia had picked the Russian two-seater jetfighter because it technologically and economically fit Indonesia's defense needs.

Indonesia said it was also planning to buy eight MI-17-IV helicopters.

A Su-30K will cost Indonesia US$34 million, $4 million more than an F-16 previously offered by the United States.

Indonesia dropped the American-made jet fighters from its shopping list because the U.S. Congress was linking the planned purchase to human rights issues.

Experience

Habibie, who is also president director of IPTN, believes Indonesia has a good chance of winning the bid for Sukhoi's spareparts manufacturing.

The Bandung-based company produced seven major components for the General Dynamics-made F-16s after the country bought the fighters in 1989. This manufacturing program has now been completed.

IPTN's vice president director Hari Laksono recently claimed that IPTN had mastered the manufacturing of spareparts for sophisticated jet fighters, particularly in composite technology.

"Because Su-30 has yet to apply such a technology, IPTN could offer it to Russia," Hari said.

He said that IPTN had also frequently supplied Japanese companies' needs for composite components.

"Japan has turned to us on the grounds that we have quality human resources, but offer cheaper prices compared to companies in Japan and other countries," he said.

"Russia should take advantage of IPTN's low-cost offer," he added. (amd)