Russia Helps RI Rebuild Defense Capability

The Jakarta Post , Jakarta | Mon, 09/24/2007 3:15 PM | Opinion

Diaz Hendropriyono, Washington, DC

On the first visit by a Russian leader to Indonesia in over 50 years, Russian President Vladimir Putin met with President Susilo Bambang Yudhoyono recently to witness the signing of a US$1 billion arms deal to upgrade Indonesia's defense capability.

The agreement includes Indonesia's purchase of 20 Russian tanks, 22 helicopters (17 passenger/transport and five assault) and two submarines, with an option to buy more over the next 15 years. Despite concerns that Russia is also aiming to expand its military clout in Southeast Asia, such a deal should not be viewed with any suspicion. Indeed, the deal will prove beneficial for Indonesia in several ways.

First and foremost, Indonesia's crumbling military needs to be modernized. Suffering under a floundering economy, Indonesia's capability to defend and secure its maritime borders has been weakened by a lack of submarines and warships. The military currently only operates two obsolete German submarines purchased in the 1980s. The recent purchase of more sophisticated and stealthy Kilo Class 636 diesel submarines will ensure more effective naval patrolling of the country's 17,000-odd islands.

Modernization could increase Indonesia's naval standing among its neighbors. The Singapore Navy currently has four Swedish Challenger submarines and plans to buy two more by 2016. The Royal Australian Navy possesses six Collins Class subs, which are already considered superior to those run by Indonesia, and will be upgraded in the near future. Recently, the Royal Malaysian Navy increased its naval power by obtaining two high-tech Scorpene Class submarines.

In the face of all this, Indonesia's efforts to modernize its navy with the purchase of two, or even more, Russian submarines appears reasonable and timely.

The second positive point is that this arms deal will not only improve Indonesia's bilateral defense relations with Russia, but will also benefit other sectors. As Putin said during his visit, ""We agreed to develop our cooperation in energy, mining, aviation and the telecommunication sector.""

The two nations signed oil, gas and mining agreements which, according to Mine and Energy Minister Purnomo Yusgiantoro, are worth up to $8 billion. These deals will help revamp Indonesia's aging oil and mining facilities.

Indonesian state-owned mining company Aneka Tambang inked a $1.2 billion deal with Russian United Company RUSAL for a project in Kalimantan. The two companies are also exploring further possibilities to expand their business into power station construction and the smelting of aluminum.

Russian oil giant LUKOIL and Indonesia's state-run Pertamina have also agreed to a $1 billion project for a cooperative oil and gas exploration. Both countries have also agreed to develop aerospace technology.

Shortly after Putin's visit, Frans Kaisiepo Airport in Papua was designated a base for launching rockets carrying Russian satellites, starting in 2010.

Russia has also stated its interest in helping Indonesia build its first nuclear power plant on Java by 2016. It is perhaps not unimaginable that the annual trade of around $680 million between the two countries could reach $1 billion in the next few years.

The third benefit from the visit is the credit offer from Russia, repayable within 15 years, which will provide flexibility for Indonesia's cash-strapped government. Russian military hardware is cheaper than similar U.S.-made models and represents what presidential spokesperson Dino Pati Djalal describes as a ""generous package.""

There are also fewer ""strings attached"" with Russian the arms sales. Defense Minister Juwono Sudarsono said, ""Requirements for purchasing arms from Western countries are complicated, with preconditions attached, such as human rights, accountability, not to mention licensing."" This is a reference to Indonesia not being allowed to use its British-supplied Scorpion tanks during its conflict with separatist rebels in Aceh.

Finally, Indonesia's relationships with Russia will help reduce its dependence on the United States, once Indonesia's largest arms supplier. In 2005, the U.S. lifted its arms embargo on Indonesia, which was imposed in 1992 after the Indonesian army killed hundreds of protesters in East Timor.

However, Indonesia does not need to reestablish its arms business with the U.S., should it choose not to. Building ties with Russia will diversify the sources of Indonesia's military equipment. Furthermore, the popularity of the U.S. has continued to decline in Southeast Asia, primarily because of its policies in the Middle East, and secondarily because of its rejection of the Kyoto Protocol. Reestablishing arms deals with the U.S. would likely result in criticism or even major protests in Indonesia.

Despite suspicions by the West that Russia is attempting to expand its political influence in Southeast Asia, the arms deals between Indonesia and Russia should be defended as there are benefits, both political and economic, at stake.

The writer is PhD student at the Center for Public Administration and Policy, Virginia Tech University. He can be reached at dhendrop@vt.edu