Indonesia has finalized the purchase of 11 Su-35 fighter jets with 85% offsets which includes 50% commodity exports to Russia and 35% in aircraft maintenance, repair and overhaul (MRO) of the $1.1 billion deal.
"It has been decided by our cabinet to finalize the procurement of 11 Sukhoi Su-35 fighter jets. This is a remarkable effort of our defense minister, Russian state-owned firm Rostec, and PT Perusahaan Perdagangan Indonesia (PT PPI), as they have now agreed to invest," the Indonesian Investment Coordinating Board (BKPM) Chief, Thomas Lembong, said in Jakarta Monday, according to Antara News.
Russia would invest in aircraft maintenance, repair and overhaul (MRO) industry for Sukhoi jet fighters that were purchased by Indonesia, the BKPM chief said.
He stated that the law on defense and law on defense industry have stipulated the requirement of minimum 85 percent offset for each purchase of defense equipment, which means that the expense from the states funding should be returned through trade and investment activities.
"Of the total 85 percent of the procurement, 50 percent would be paid in barter trade(commodity exports) and the remaining 35 percent with investment contract," he elaborated. The total procurement of the jet fighters is amounted at US$1.145 billion.
The Trade Ministry has appointed PPI and Rostec to undertake the barter trade. Indonesia would send some commodities, including rubber and palm oil.
"Their investment value is 35 percent of the total $1.145 billion in order to build a spare part factory for the MRO industry," he continued.
He added that the jet fighter procurement would be finalized by the Defense Ministry. "BKPM and Trade Ministry will follow." The barter trade deal of SU-35 between Indonesia and Russia was signed on Aug 10.
Indonesia's Defense Minister Ryamizard Ryacudu said on Thursday that the Russian-built Su-35S ‘Flanker-E multirole fighter jets ordered for the country's air force come with an entire weapons package. "They will be well-equipped with weapons because we have additional weapons on discount," Ryacudu, stated at the Presidential Palace was quoted as saying by Antara News
Indonesia is waiting Russias decision to barter 11 Sukhoi fighter jets with Indonesian commodities including furniture, coffee and sugar, trade minister Enggartiasto Lukita said in Jakarta Monday. "We give them time to discuss it internally," he said at the Presidential Palace compound
Indonesia has offered to pay $570 million worth of commodities in addition to cash for 11 Sukhoi Su-35 fighter jets worth $1.14 billion from Russia
Russia and Indonesia have agreed an offset obligation program that outlined the Su-35 fighter jet's concept, as well as arranged delivery times and training programs. "The theoretical work is completed
Russia and Indonesia have reached an agreement for the latter to purchase eight Su-35 fighter jets. A formal contract is expected to be signed before the end of the year
Russia has offered to barter its Sukhoi Su-35 fighter jets for natural rubber from Indonesia. "Russia is interested in our countrys crumb rubber
Indonesia will reportedly set up a team to study planned procurement of Russian Su-35 fighter jets, covering all aspects of the agreement signed early this year. Speaking at a coordination meeting held to discuss the planned procurement in Jakarta on Friday, Coordinating Minister for Political, Legal and Security Affairs Wiranto said the team will also look at the subsequent process of developing Korean Fighter Xperiment/Indonesian Fighter Xperiment (KFX-IFX)
South Korea's defense procurement agency will shift its "offset-trade" policy from technology transfer to industrial cooperation or local manufacture in its future deals with foreign defence exporters. The change will lead to additional exports worth US$270 million between 2020 and 2024 and the creation of some 3,700 jobs, the Defense Acquisition Program Administration (DAPA) said in a statement Tuesday
A Russian delegation in Indonesia is holding talks on a contract for the supply of Sukhoi-35 fighter jets, a source in the system of Russias military-technical cooperation with other countries told TASS on Thursday. "A Russian delegation in Indonesia is negotiating the terms of a contract for the supply of Sukhoi-35 jets with Indonesian partners," the source said
Indonesias newly appointed Air Force Chief of staff Air Marshall Yuyu Sutisna has sworn to purchase Russias advanced Su-35 fighter jets at the earliest. Speaking after his inauguration at the State Palace on Wednesday, Yuyu told The Jakarta Post on Wednesday: "I want the Sukhoi [purchase contract] to be signed as soon as possible, hopefully this month"
Russia has sent the second batch of 10 Su-35 fighter jets to China under a 2015 contract to supply 24 fighter jets TASS reported an unnamed source from Russias military and technical cooperation agency. "Another batch of 10 aircraft has been sent to the customer
Indonesias weapons manufacturer PT Sari Bahari said that it will soon begin mass production of P-250 Practice (P) bombs, which will be used to train the Air Forces Sukhoi fighter jet pilots, after a successful explosion test last week. The Indonesian firm tested P-250 Live (L) from the Pandanwangi air weapon range (AWR) in Lumajang regency, East Java, last Friday, The Jakarta Post reports
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