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Indonesia Uses Export Commodities to Purchase Russian Sukhoi

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22 August 2017 21:20 WIB

Sukhoi SU-35. Getty Images

TEMPO.CO, Jakarta - The Indonesian and Russian governments signed a deal on the purchase of Sukhoi Su-35 Flanker E on August 10. The deal was signed during the trade mission to Russia that was led by Trade Minister Enggartiasto Lukita.

The Sukhoi fighter jet worth US$1.14 billion will be traded through Indonesian export potentials that are half the value of the purchase, or US$570 million. Both governments agreed to appoint Rostec and PPI as the technical implementers of the buy-back.

Read: Govt to Exchange Rubber for Russian Sukhoi

The MoU explains that Rostec guarantees to purchase more than one Indonesian export commodity with the options of processed rubbers, CPO, coffee, cocoa, textiles, footwear, processed fish, spices and defense industry products.

Rostec will be given the freedom to choose the exporter. The decision to purchase a Sukhoi fighter jet was taken following President Jokowi’s official state visit to Russia last year.

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