Indonesia to sign multi-billion-dollar deals with Russia

Indonesia will sign multi-billion-dollar deals with Russia on Thursday during a visit to Jakarta by President Vladimir Putin, said a presidential spokesman.

Indonesia to sign multi-billion-dollar deals with Russia
Indonesia will sign multi-billion-dollar deals with Russia on Thursday during a visit to Jakarta by President Vladimir Putin, said a presidential spokesman.

Dino Patti Djalal, spokesman for the Indonesian President Susilo Bambang Yudhoyono explained Wednesday that the agreements would involve military weapons, mining and oil sectors.

Djalal said Russia will grant Indonesia a 1-billion-dollar credit-line to buy Russian military equipment, including two submarines, a number of helicopters and amphibious tanks.

The planned agreement will further deepen military links between the two countries as well as upgrading Indonesia's army, navy and air force. In return, it will reduce Indonesia's dependence on US military supplies.

Indonesia has been shifting to other sources of arms since the United States - formerly Jakarta's largest military equipment supplier - cut military ties in 1999 over human rights concerns. The ban was lifted in 2005, but Jakarta continues to buy from other sources.

In addition to the weaponry deal, the Indonesian mining company Aneka Tambang will sign a 3-billion-dollar deal with Russian aluminium giant United Company Russal, while state-owned oil company Pertamina plans to sign a 1-billion-dollar agreement with Russia's LukOil, the state-run Antara news agency quoted Djalal as saying.

He said the bilateral ties, especially economic cooperation between the two countries, would be a primary topic to be discussed between Putin and Yudhoyono during the Russian leader's one-day stop over on his way to the Asia-Pacific Economic Cooperation forum in Australia.

It would be Putin's first visit to Jakarta.

DPA
Last Mod: 05 Eylül 2007, 18:21
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