Indonesian Political, Business & Finance News

RI explores IT, defense cooperation with India

RI explores IT, defense cooperation with India

Rendi A. Witular, The Jakarta Post, Bangalore, India

President Susilo Bambang Yudhoyono touched down on Monday at
Bangalore Airport to kick off a three-day visit to India, aiming
to seek cooperation in defense and technology and emphasize
closer diplomatic and economic ties.

"The visit is mostly aimed at strengthening cooperation in the
defense industry and technology sector. Indonesia is lagging
behind in reforming these two sectors," Presidential spokesman
Dino Patti Djalal told The Jakarta Post.

Fresh from attending the Asia-Pacific Economic Cooperation
(APEC) summit in Busan, South Korea, Susilo started his trip to
India by visiting the country's leading aircraft and defense
manufacturer Hindustan Aeronautics Limited (HAL) and the world's
giant computer software producer Infosys Technologies Ltd.

At the HAL plant, Susilo observed a display of the Indian-
modified Jaguar combat aircraft and the DHRUV combat and
logistics helicopter.

Indonesian Air Force Chief of Staff Air Marshall Djoko Suyanto
told the Post that the government was seeking to purchase spare
parts and missiles from HAL for the country's Russian-made Sukhoi
jet fighters.

"We are more interested in the Sukhoi equipment produced by
HAL. We may start purchasing equipment from the company in 2007,"
Djoko said.

Susilo has been traveling around the world to seek defense
cooperation agreements in order to gradually detach the country
from its dependence on the United States and Britain, which had
for years supplied war machines to Indonesia.

The U.S. government scrapped military ties with Indonesia
following the 1991 Santa Cruz massacre in Dili, Timor Leste. The
embargo meant Indonesia is in need of spare parts for its
weaponry. Britain suspended all arms exports to Indonesia in 1999
but resumed them with conditions after the European Union arms
embargo was lifted in January 2000.

The U.S. plans to resume full military ties with Indonesia
after Congress issues a bill to end a decade-long arms embargo on
Indonesia. However, certain conditions apply and it could be some
time before the military meets them.

Earlier on the sidelines of the APEC meeting in Korea, Susilo
met with Russian President Vladimir Putin, with the two leaders
expected to sign a deal in the defense sector and energy later
next year during Susilo's visit to Moscow.

During the Infosys headquarter tour, Susilo said his visit was
aimed at seeking first-hand information on the operations of the
company, as well as learning how the company managed to pioneer
India's skyrocketing software exports.

This year, it is estimated India will export about US$17
billion in software products, with Infosys projected to account
for at least $4 billion. The company recorded a revenue around $2
billion last year.

On Tuesday, the President is scheduled to have a breakfast
meeting with Indian businesspeople grouped in the Confederation
of Indian Industry before flying to Agra to visit the Taj Mahal.

Susilo will fly to New Delhi in the evening to meet Indian
Prime Minister Manmohan Singh and sign memorandums of
understanding on fisheries, education and agriculture.

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