Russia Extends US$1b in Credit to Indonesia for Military Hardware

Posted: 04 September 2007 0931 hrs

MOSCOW : Russia will grant Indonesia a billion-dollar credit line to enable it to buy Russian military hardware, a Russian presidential spokesman said Monday.

The credit agreement was due to be signed when Russian President Vladimir Putin visited Jakarta on Thursday, Sergei Prikhodko told Russian news agencies.

"The amount of credit will be about one billion US dollars (734 million euros)" he said.

Indonesia would not be placing any immediate orders, but the two leaders would discuss military and technical cooperation during the course of the visit, he added.

"Indonesia is a solvent country that produces oil, and Russia grants credit to such countries, if the possibility arises," he said.

Indonesia is a major arms buying client for Russia.

In August it bought six Russian Sukhoi-30 fighter aircraft for a cost of US$330 million to US$350 million. - AFP/Chanel News Asia

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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.

TNI AU dan RSAF Gelar Latihan Udara Bersama

TNI Angkatan Udara menggelar latihan udara bersama dengan Republic of Singapura Air Force (RSAF) dengan sandi Camar Indopura V/07 yang digelar di Lanud Ranai Kepulauan Natuna selama tiga hari dari tanggal 31 Juli sampai 2 Agustus 2007.

Tujuan latihan adalah untuk meningkatkan profesionalisme personel dan mempererat hubungan bilateral kedua negara khususnya kedua Angkatan Udara melalui latihan Maritim Surveillance. Sedangkan sasaran latihan adalah untuk meningkatkan kemampuan personal awak pesawat boeing 737 khususnya dalam taktik dan tehnik Air surveillance dalam melaksanakan tugas Operasi militer selain Perang (OPSM).

Dalam pelaksanaan air surveillance dikembangkan pula tehnik Search and Locate, Air contact Procedure and Target Info serta Tactical Communication and Inflight Report antara pesawat Boeing 737 TNI AU dengan F-50 Maritim Patrol Aircraft (MPA) milik RSAF.

Bentuk latihan lain adalah joint air surveillance antara Boeing 737 tNI AU dengan Fokker-50 RSAF dalam Operasi Militer Selain Perang dan macam latihan berupa air reporting procedure and post flight report serta metode latihan berupa briefing, radio contact procedure, cross cover dan identification process, identifikasi kapal.

Dalam pelaksanaan proses latihan Pesawat Boeing 737 Maritim Patrol Aircraft (MPA) TNI AU dari Skadron Udara 5 Lanud Hasanudin Makassar yang dipimpin oleh Komandan Skadron Letkol Pnb Mujianto berhasil mendeteksi dua kapal perang asing yang melintas di perairan kepulauan Natuna pada koordinat 02.38.21N dan 107.26.00E dengan heading 050 derajat.

Kedua kapal perang tersebut dengan jenis Fregat dan Logistik dengan nomor lambung dan bendera yang kurang jelas tersebut membawa sebuah helikopter yang sekaligus melakukan manuver di atas kapal yaitu terbang dari satu kapal ke kapal lainnya.

Menurut Direktur Latihan (Dirlat) Kolonel Pnb. IB. Putu Dunia hasil identifikasi kapal perang tersebut langsung dikoordinasikan dengan pihak terkait khususnya TNI Angkatan Laut dan Mabesa TNI AU, ternyata kapal perang tersebut milik sebuah negara adi kuasa yang akan berlayar ke Jakarta, namun headingnya berlawanan dengan arah tujuan. Selain itu dapat diidentifikasi pula kapal-kapal lainnya yang berlayar sekitar perairan Natuna seperti kapal tanker, kontainer, kapal barang, kapal nelayan bahkan tug boat.

RI to Have Sukhois Maintained in India

The Jakarta Post , Jakarta | Tue, 06/26/2007 10:13 AM

JAKARTA: The Indonesian government will likely award the maintenance contract for its Russian-made Sukhoi jet fighters to India, as Russian technical support would cost too much, Defense Minister Juwono Sudarsono said Monday.

""We may have the Sukhois overhauled in India. We do not need to go to Russia as India offers cheaper maintenance fees,"" Juwono said as quoted by detik.com news portal.

The minister said that through its Hindustan Industries, India was granted a license from Russia to produce and maintain the Sukhois, services which include manufacturing weapons and spare parts for the fighters.

Juwono added that Indonesia and India are also seeking to co-produce light weapons, artillery and light-carrier aircraft, as well as conduct joint training activities.

Indonesia currently has four Sukhois and is awaiting the arrival of six more to form a ""minimum"" squadron of the Russian fighters. -- JP

Sukhoi squadron 'to fly by 2008'

The Jakarta Post , Jakarta | Mon, 12/04/2006 1:08 PM

The Indonesian Military says that by 2008 it will have a squadron of 10 Sukhoi jet fighters, with Russia pledging US$1 million in credit for the arms purchase.

"We have four Sukhoi jet fighters now. We hope that, with the new agreement, we could have a squadron by 2008," Defense Ministry secretary-general Sjafrie Sjamsuddin was quoted as saying Saturday by Antara.

Indonesia plans to buy six more jet fighters from Russia through a US$1 billion loan that was signed by Sjafrie on Friday in Moscow.

The loan was set shortly after President Susilo Bambang Yudhoyono met with Russian Prime Minister Vladimir Putin to sign several agreements, the most important of which was on military equipment purchases.

Yudhoyono was said to have been impressed by the Russian military technology on display at the recent defense expo in Jakarta.

Indonesia also plans to buy 10 MI17 U-5 carrier helicopters and five combat choppers through the loan scheme. It will also purchase two submarines, 20 amphibious tanks and anti-aircraft missiles for its navy.

Sjafrie said Indonesia would need US$1.3 billion for arms procurement between 2006 and 2010. ""We will try to get the remainder from the Finance Ministry with the National Development Planning Board's recommendation,"" he said.

Indonesia purchased the first four Sukhois, along with two MI-35 helicopters worth US$192 million in 2003, during Megawati Soekarnoputri's presidency.

The purchase was a controversial one as the government did not consult with the House of Representatives before making it. But the Defense Ministry at the time had announced plans to purchase more jet fighters from Russia.

The ministry said Indonesia needed more Sukhoi jet fighters to strengthen its defense and that four Russian jet fighters would not be enough. It said it believed the number of the jet fighters needed to be increased to at least a squadron, between 10 to 16 planes, to build a strong defense system.

The Indonesian Military turned to Russia for arms after the U.S., which had supplied 80 percent of Indonesia's weaponry, placed an embargo on the country following the Dili massacre in Timor Leste in 1991.

The embargo was lifted fully earlier this year after Jakarta agreed to carry out a full investigation into the 2002 killing of two Americans in Papua.

Sjafrie said Indonesia and Russia had signed an agreement to protect copyright in the defense industry, especially in terms of information technology and military strategy. The two countries, he added, had also agreed to enhance professionalism and to hold joint military trainings.

Military to Buy 6 More Sukhois

The Jakarta Post , Jakarta | Wed, 11/29/2006 12:49 PM

MALANG, East Java: Indonesia will buy six more Russian-built Sukhoi jet fighters, Air Force chief Marshall Herman Prayitno said Tuesday.

Herman said the purchase of the Sukhois, of which Indonesia already owns four, was to be made through a US$1 billion loan from Russia that President Susilo Bambang Yudhoyono would sign during his trip there this week.

Yudhoyono is scheduled to meet his counterpart Vladimir Putin to finalize the loan.

""The purchase of more Sukhois is aimed at creating a deterrent effect and we do not have any plans to attack other countries. Of course as a sovereign country we want to be strong and respectful,"" Herman said.

Indonesia purchased the first four Sukhois, along with two MI-35 helicopters worth US$192 million in 2003, during Megawati Soekarnoputri's presidency.

The Indonesian Military turned to Russia for arms after the U.S., which supplied 80 percent of Indonesia's weaponry, placed an embargo on the country following the Dili massacre in Timor Leste in 1991. The embargo was lifted fully earlier this year. -- JP

Russia Extends Credit for Arms

The Jakarta Post , Jakarta | Sat, 07/01/2006 4:31 PM

The Russian government has agreed to provide Indonesia a US$1 billion export credit to procure several Sukhoi fighter jets, warships and other military equipment from the country.

A memorandum of understanding on the deal was signed in Jakarta on Thursday. It follows an agreement in April 2003 to enhance technical military cooperation between the two countries.

Under this latest deal, the export credit also will be used to buy spare parts from Russia, for troop training programs and to develop Indonesia's defense industry. The agreement is effective for five years.

""As a first step, we will buy six Sukhoi fighter jets for around US$300 million to meet the needs of the Air Force,"" said the secretary-general of the Defense Ministry, Lt. Gen. Syafrie Syamsudin.

He said the ministry hoped two of the Sukhoi jets would be delivered by mid-2007. The Indonesian Military currently owns four Sukhoi jets.

Syafrie said Indonesia also planned to buy several Russian vessels for the Navy, including submarines.

According to the secretary-general, the government agreed to accept the export credit because of the beneficial terms offered. ""The interest rate is only for five years and there is no insurance fee. The credit can save us up to 12.25 percent if compared to a commercial credit.""

""There is the possibility that the value of the credit will be expanded. Russian banks are still studying this cooperation,"" Syafrie said.

President Susilo Bambang Yudhoyono plans to visit Russia to discuss defense cooperation with his counterpart Vladimir Putin.

Alexander V. Denisov, a senior Russian defense official, said his office was preparing for the planned visit by Yudhoyono. However, he could not specify a date.

""We can fulfill all the Indonesian government's military needs since our government has a good relationship with Indonesia,"" Denisov said during Thursday's signing ceremony.

He said Russia had also agreed to find other sources of funds to provide Indonesia more credits for its defense needs.

""We are still talking about the payment system for the Indonesian government,"" he said.

There will be more talks with Indonesian officials about the details of future contracts, Denisov added. (05)