Indonesia Proceeds with Sukhoi Purchase: News Analysis

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Last updated at: (Beijing Time) Sunday, August 24, 2003

Indonesia Proceeds with Sukhoi Purchase: News Analysis

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The Indonesian government will complete its first stage of payment in the purchase of four Russia-made Sukhoi jet fighters and two MI-35 helicopters by Aug. 25 despite mounting criticism and protests from the House of Representatives.

Russia is expected to receive thousands of tons of Indonesian crude palm oil and other commodities worth more than 20 million US dollars this month, in addition to 26 million dollars in cash paid earlier by the government, local news broadcaster SCTV reported Saturday.

At least 32 military officers from the Indonesian air force and the army have been sent to Russia since May this year to undertake intensive exercises in piloting the Sukhoi jets and helicopters and are expected to return home in September.

Indonesia hopes the Sukhoi jets would join the celebration of the Armed Forces' 58th anniversary on Oct. 5, SCTV quoted military officers as saying.

The arms deal totaling 192 million dollars was reached during Indonesian President Megawati Soekarnoputri's visit to Moscow in April this year.

Indonesia and Russia agreed that 144 million dollars would be paid in a counter trade scheme, under which Indonesia will deliver more than 30 items of goods, including CPO, coffee, cigarettes, coffee, shoes, electronic parts and computers in exchange for the aircraft.

Indonesian military officials started to show big interest in buying Russian military equipment after witnessing the spectacular maneuvers of Sukhoi-27 Flanker during the Indonesian Air Show back in 1996, SCTV said.

Indonesia had expressed its intend to buy Russian military package comprising jet fighters, helicopters and submarines worth some 20 billion dollars, it said.

However, the plan apparently went aground when financial crisis hit the country in 1997-98, prompting the then military chief General Feisal Tandjung to cancel the plan in 1998.

Incumbent military chief General Endriartono Sutarto recently rearranged a plan to turn to Russia for arms purchase, following a five-year-old military embargo imposed by the United States which used to supply 80 percent of Indonesia's weaponry.

But the purchase has been obviously politicized due to some domestic issues and the upcoming general election in 2004, and the Sukhoi deal triggered protests from the House of Representatives, which then formed an inquiry team into the deal.

The team questioned why the transaction was arranged by the Ministry of Industry and Trade instead of the Ministry of Defense, and argued that the Indonesian radar system is not suitable with Russian planes. They also alleged that money is misused by Indonesian officials in the transactions.

To counter these charges, President Megawati in her Aug. 15 speech to the parliament slammed her critics, saying the arms deal with Russia was fully free from abuses and intended for restructuring the poorly armed air force.

She said the government would press ahead with the purchase despite various allegations from the House inquiry team.

Indonesia's most modern fighters were a squadron of US-made F-16s bought in the early 1980s and a number of British Hawks.

Besides, Britain has firmly rejected the use of the Hawks in the recent fight against rebellion in Aceh province.

Meanwhile, the US government has not yet fully resumed its military-to-military relationship with Indonesia, thus putting the aging Indonesian military equipment, including its air force's backbone, the F-16 squadron, in the peril of being out of use.

These have left Megawati no choice but to turn to Russia for alternative arms supply. Some analysts believe it's also a good option for Indonesia to break the US military sanctions against the country.

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