Indonesia to buy US$1.14b worth of Russian jets
[ JAKARTA] Indonesia will buy 11 Sukhoi fighter jets worth US$1.14 billion from Russia in exchange for cash and Indonesian commodities, two cabinet ministers said on Tuesday.
The Southeast Asian country has pledged to ship up to US$570 million worth of commodities in addition to cash to pay for the Suhkoi SU-35 fighter jets, which are expected to be delivered in stages starting in two years.
Indonesian Trade Minister Enggartiasto Lukita said in a joint statement with Defence Minister Ryamizard Ryacudu that details of the type and volume of commodities were "still being negotiated". Previously he had said the exports could include palm oil, tea, and coffee.
The deal is expected to be finalised soon between Indonesian state trading company PT Perusahaan Perdangangan Indonesia and Russian state conglomerate Rostec.
Russia is currently facing a new round of US-imposed trade sanctions.
Meanwhile, Southeast Asia's largest economy is trying to promote its palm oil products amid threats of a cut in consumption by European Union countries. Indonesia is also trying to modernise its ageing air force after a string of military aviation accidents.
Indonesia, which had a US$411 million trade surplus with Russia in 2016, wants to expand bilateral cooperation in tourism, education, energy, technology and aviation among others.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Oil prices steady after Iran plays down reported Israeli attack
G7 pledges swift aid for Ukraine, seeks to calm Middle East
H5N1 strain of bird flu found in milk: WHO
China moves to boost foreign investment in domestic tech companies
Xi orders China’s biggest military reorganisation since 2015
Warner Bros CEO earned US$49.7 million in strike-impacted year