Sukhoi fighter deal signed

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