Indonesian Political, Business & Finance News

Russia eases RI way to more guns

| Source: JP

Russia eases RI way to more guns

Tiarma Siboro, The Jakarta Post, Jakarta

Russia has offered cash-strapped Indonesia more facilities to buy
arms and opportunities to master defense technology against the
backdrop of an arms embargo imposed by Indonesia's traditional
weapons supplier, the United States.

The Indonesian Ministry of Defense's director general of
procurement Pieter L.D. Wattimena, told the press that both
countries had agreed on "a simple mechanism" for arms deals in
the future, including Indonesia's plan to buy 12 more Sukhoi jet
fighters, as well as an aircraft carrier and missiles.

"Russia has offered us a counter-trade mechanism and the
payments are negotiable as Russia has also agreed to open bank
accounts to channel export credits to Indonesia," said Pieter,
who is fresh from a visit to Russia last week.

Pieter led a delegation to Moscow to also negotiate the
purchase of weaponry for the four Sukhois Indonesia bought in
2003. The purchases sparked controversy in the House of
Representatives at the time as some lawmakers accused the
government of paying too much for the jets, minus the necessary
weaponry.

The House approved a budget allocation of Rp 21 trillion
(around US$2.1 billion) for defense in fiscal 2005, accounting
for 6 percent of the overall budget. For next year, the
government has proposed an increase of Rp 2 trillion.

Around 70 percent of the budget has always been spent on the
upkeep of soldiers.

Pieter said Indonesia and Russia were seeking tighter defense
cooperation through a transfer of know-how and technology, and
the accreditation of Indonesian military products under Russian
license.

The defense ministry has suggested to Russia that such
cooperation involve state shipbuilder PT PAL, aircraft
manufacturer PT Dirgantara Indonesia and the Army Industrial
Affairs Center (Pindad).

Indonesia has been desperately seeking new arms suppliers to
help it modernize its weaponry after the United States imposed an
embargo 13 years ago following the violent suppression of a
demonstration in the then East Timor.

Washington eased the embargo after the tsunami devastated
Aceh and Nias and killed over 130,000 people on Dec. 26 last
year. A full restoration of military ties between the two
countries faces another challenge, however, in the form of the
killing of two American teachers in Papua in an ambush in 2002,
which also left an Indonesian dead.

Some eastern European countries, as well as Indonesian's
Southeast Asian neighbors, have proposed cooperation in
developing defense industries in Indonesia, but lack of money has
prevented the plans from being realized.

When asked about turning to Israel as another potential
supplier, Pieter said Israeli telecommunications and information
technology for defense purposes was among the best in world, "but
we can't start cooperative ventures as Indonesia and Israel don't
have diplomatic relations," he said.

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