RI bidding to supply Sukhoi spareparts

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)