RI pursues $1 billion arms deal with Russia

November 17, 2006
Tony Hotland, The Jakarta Post, Jakarta

The Indonesian government has agreed to purchase military equipment worth US$1 billion from Russia in an effort to diversify its arms sources, Defense Minister Juwono Sudarsono said Thursday.

Purchasing arms from Russia, he said, keeps the country from being totally dependent on American military products, which is important if there is another arms embargo by the U.S. in the future.

The U.S. government completely lifted its arms embargo on Indonesia only this year. The embargo was put in place after the Nov. 12, 1991, Santa Cruz cemetery massacre in Dili, East Timor (now Timor Leste), by the Indonesian Military, in which over 200 people were reportedly killed.

Almost all of Indonesia's military equipment, some of which became inoperable due to the embargo, was made in the U.S.

The military says it didn't purchase arms during the embargo, but reports say it bought some in the gray market, including from Israel through third parties.

Juwono said the U.S. had no objection to Indonesia's deal with Russia, although it did investigate what Indonesia planned to buy from the country.

The $1 billion export credit, to be integrated into the state budget, will last for five years, from 2006 until 2010, although the first arms shipment is not expected until next year.

Juwono said Indonesia had ordered five new cargo helicopters, four combat helicopters, two submarines and six fighter jets from Russia.

President Susilo Bambang Yudhoyono is set to visit Russia later this month after a trip to Japan, but he will not visit weapons factories there.

Purchasing combat weapons, said Juwono, was essential for the military of a country as vast as Indonesia, to fight external threats from other countries.

"Every military needs to have a balance between combat equipment, transportation and supplies. We must have fighting resources of at least one and a half squadrons if we don't want to be harassed," he said.

An interdepartmental team left for Russia in March to examine the arms, especially checking their compatibility with American products, along with their maintenance requirements and durability.

Juwono said this was a direct purchase between governments and did not involve the private sector.

Nonetheless, he said, the government would remain watchful for possibilities of Russia marking up the prices.

For the first shipment phase, the military will prioritize equipment required by the Air Force.

The $1 billion budget is part of the $3.7 billion allocated for arms purchases by the Indonesian Military through export credits over the next five years, starting effectively in 2007.

This budget is part of the government's mid-term development plan, which was enacted in 2004.

"The remainder will go to buying arms from the U.S. or Poland. We're also balancing purchases from other countries such as Australia, Japan, Korea and possibly India. The long-term goal remains building our domestic industry, but it's a fact that we are not yet able to assemble combat weapons," said Juwono.

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