SOURCE: IHS Jane’s Defence Industry
Indonesia and Russia have signed an agreement to facilitate countertrade deals in support of Jakarta’s pending contract to procure Sukhoi Su-35 ‘Flanker-E’ multirole combat aircraft.
The accord, which was signed on 3 August in Moscow, is channelled through a memorandum of understanding (MOU) signed by Rostec, the holding group for Russia’s defence industry, and Indonesia’s state trading company PT Perusahaan Perdagangan Indonesia (PT PPI).
According to a statement by Rostec, the MOU “provides for co-operation in the implementation of [a] bilateral trade programme under the contract for the sale of Su-35 fighters to Indonesia”.
Rostec added that the trade programme will feature exports of Indonesian goods to Russia as part of its obligations under the pending Su-35 contract. It added that the list of exported goods will be negotiated by a working group to be established as per the terms of the MOU.
“The Russian party will have the right to choose Indonesian goods and manufacturers to act as trading partners,” said Rostec. “The agreement is structured to promote exports of advanced goods produced by Indonesian companies to Russia.”
Viktor Kladov, Rostec’s director for international co-operation and regional policy, added, “We believe that the signing of the agreement will further expand military and technical co-operation with Indonesia and improve trade relations between our two countries.”