Selasa, 04 September 2007

Putin, SBY Plan $1b Defense Agreement

The Jakarta Post , Jakarta | Tue, 09/04/2007 2:11 PM

Abdul Khalik, The Jakarta Post, Jakarta

The Indonesian Military is expected to buy Russian helicopters, tanks and submarines after a planned visit by Russian President Vladimir Putin to the country on Thursday.

On his one-day visit to Jakarta, Putin and his counterpart Susilo Bambang Yudhoyono will witness the signing of Indonesia's credit purchase of 22 helicopters, 20 tanks and two submarines from Russia.

Defense Ministry spokesman Brig. Gen. Edy Butar Butar said the purchase, worth US$1 billion and payable within 15 years, would supply the military with 17 passenger helicopters and five offensive helicopters and the Navy with two submarines and 20 amphibian tanks.

""The Air Force will also receive weapons and equipment for its Shukoi squadron, because on top of the $1 billion purchase we will also buy six Shukoi jet fighters worth $335 million,"" Butar Butar told The Jakarta Post, referring to another agreement with Russia.

Both leaders will also witness the signing of oil and gas contracts and agreements on environmental cooperation.

Indonesian Foreign Ministry Director General for European and American affairs Eddhi Hariyadhi said Monday the purchase of military equipment was agreed on following the US$1 billion export loan agreement signed during President Yudhoyono's visit to Russia last year.

Eddhi spoke on the sidelines of a seminar on a Russia-Islam alliance organized by the Center for Dialogue and Cooperation among Civilizations, in Jakarta.

During Megawati Soekarnoputri's presidency, Indonesia bought Shukoi aircraft from Russia.

Military analysts have said cooperation with Russia and other countries would ease Indonesia's dependence on the U.S.

Indonesia relied heavily on the U.S. for weapons supplies and military equipment in the past. However, the U.S. slapped a military embargo on the country in 1992 after reports of human rights abuses in Indonesia's then province of East Timor.

U.S. military restrictions were withdrawn earlier this year, but the Indonesian government is still seeking other suppliers.

The gas and oil contracts will allow Russian companies to invest in Indonesia's oil and gas fields.

Eddhi said Russia's biggest state oil company, Lukoil, would sign contracts with Indonesia's state-owned oil company Pertamina, while Russia's mine company RusAi would sign deals with Indonesia's PT Aneka Tambang.

The Indonesian Chamber of Commerce and Industry has said Russian companies would invest up to $10 billion across the country.

The leaders will discuss the implementation of old agreements and witness the signing of new agreements on best practices in environmental auditing and reforestation.

Indonesia, which will host the UN climate change conference in Bali in December, is lobbying the international community to support its agenda of establishing a special fund for reforestation programs, to be tabled at the Bali conference.

Muhammadiyah chairman Din Syamsuddin and political expert at the University of Indonesia Fadli Zon agreed Indonesia should strengthen its relationship with Russia to avoid being too dependent on the U.S.

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