Sukhoi fighter deal signed
JAKARTA (JP): Indonesia will fund the purchase of Russian Sukhoi jet fighters and helicopters through a counter-purchase deal worth US$500 million, a senior minister said yesterday.
State Minister of National Development Planning Ginandjar Kartasasmita revealed that a letter of agreement was signed during his visit to Moscow on Aug. 29 between the Indonesian Armed Forces (ABRI) and the Russian Federal State Unitary Enterprise Rosvoorouzhenie.
Signing on behalf of ABRI were assistant for planning and budget of the Army Maj. Gen. Tyasno Sudarto, Commander in Chief of National Air Defense Command Air Vice Marshal M. Koesbini and representative of the Ministry of Industry and Trade Aidil Juzar.
"Russia has agreed to a total counter-purchase deal after tough negotiations... Russia eventually agreed to import our goods which have equal value to our arms import," Ginandjar told journalists after meeting with President Soeharto at his residence on Jl. Cendana, Central Jakarta.
"The President supports the policy," Ginandjar added.
In the agreement Indonesia listed 40 commodities to exchange with Russia.
These include rubber, textiles, the national Timor car, palm oil, electronic goods, soaps, toys, forklifts, cigarettes, spices, bicycles, rattan and wooden furniture, cosmetics, office supplies and stationery.
"We'll make a 20 percent down payment after the contracts go into effect this month," disclosed Ginandjar who lead the team that went to Moscow last month.
Indonesian officials had earlier expected an offset deal from the purchase.
State Minister of Research and Technology B.J. Habibie said last month that it was reasonable to expect a 35 percent offset deal from the purchase.
However, Ginandjar said yesterday that there was no offset deal.
"Because this is a counter-purchase, we didn't force an offset deal... this is 100 percent counter-purchase, therefore there is no offset," Ginandjar said adding that Russia guaranteed a five- year spare parts supply.
"So we didn't target this much or that much, even though there was a desire from Pak Habibie... but in the negotiations we didn't go that far," Ginandjar remarked.
The Indonesian government opted last month to buy 12 Sukhoi- 30K jet fighters and eight MI-17-IV helicopters from Russia to modernize its air defense system.
It opted for the Russian fighters after canceling the purchase of American-made F-16 jet fighters which had been continuously linked to human rights issues.
Russia will deliver the Sukhoi fighters, comprising eight single seaters and four double seaters, and helicopters over the next two to three years.
The first batch is expected to be delivered early next year.
Ginandjar said some modifications will also be made to the helicopters.
"After flying in the helicopter (in Russia), Army Chief General Wiranto asked for some changes to meet our needs," he explained.
Russian company Progress and Commerce PLP in cooperation with Indonesian company PT Dwipangga Sakti Prima have been appointed to carry out the counter-purchase deal.
Ginandjar expects the transaction to accelerate trade between the two countries.
"They've also offered our Air Force officers to be trained as astronauts," he remarked. (prb)
Arms sales -- Page 6