Indonesia signs US$1b deal to buy 11 Russian jets
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Indonesia has inked a billion-dollar deal to buy 11 Sukhoi Su-35 jets from Russia, an official said Saturday.
The contract, signed by both countries’ representatives in Jakarta on Wednesday, is worth a total US$1.14 billion (RM4.43 billion), Indonesia defence ministry spokesman Totok Sugiharto said.
The deal comes after Indonesia said in August that it would seek to trade palm oil, coffee and tea for Russian fighter jets, saying it wanted to capitalise on international sanctions on Moscow.
The EU and US have targeted Russia with sanctions for alleged meddling in the US presidential election and its annexation of Crimea.
However, Indonesia’s trade minister said the sanctions could be good news for his country as Russia is forced to seek new markets to import from.
Indonesia and Russia signed a memorandum of understanding to exchange 11 Russian-made Sukhoi fighters for key commodities in Moscow early August.
It was not announced Saturday in what form payment would be made.
Questions & Answers
Q.What is the total value of the deal Indonesia signed with Russia for the fighter jets?
What is the total value of the deal Indonesia signed with Russia for the fighter jets?
The contract for the 11 Sukhoi Su-35 jets is worth a total of US$1.14 billion. This amount was confirmed by Indonesia's defence ministry spokesman, Totok Sugiharto, when announcing the signing.
Q.When did Indonesia initially indicate its interest in trading commodities for Russian fighter jets?
When did Indonesia initially indicate its interest in trading commodities for Russian fighter jets?
Indonesia stated in August that it would look to trade palm oil, coffee, and tea for Russian fighter jets. This was done to capitalise on existing international sanctions against Moscow.
Q.Which specific commodities did Indonesia propose to exchange for the Russian jets?
Which specific commodities did Indonesia propose to exchange for the Russian jets?
Indonesia proposed trading palm oil, coffee, and tea for the Russian fighter jets. This was part of an effort to take advantage of the international sanctions imposed on Moscow.
Q.Why does Indonesia's trade minister view the sanctions on Russia as potentially beneficial for his country?
Why does Indonesia's trade minister view the sanctions on Russia as potentially beneficial for his country?
Indonesia's trade minister believes the sanctions could be good news because they force Russia to seek new markets to import from. This creates an opportunity for Indonesia to establish trade agreements.
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