Rabu, 19 Desember 2018

Govt to Exchange Rubber for Russian Sukhoi

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  • Sukhoi Su-34 Bomber. Sergei Bobylev/TASS

    Sukhoi Su-34 Bomber. Sergei Bobylev/TASS

    TEMPO.CO, Jakarta - The government announced a plan to exchange rubber commodity for Russian Sukhoi jet fighters. Trade Minister Enggartiasto Lukita confirmed that he has asked the Attorney General’s Office (AGO) to accompany the government throughout the deal with Russia.

    “We expect the Supreme Court to accompany us in every step throughout the deal. Having the AGO beside us will prevent manipulations,” Enggartiasto said on Wednesday, May 17.

    Regarding the deal’s legality, Enggartiasto explained that it is regulated under Law No. 16/2012 on the trade industry.

    “There’s a law regulating an exchange, including for a purchase of primary weaponry defense system. There is a transfer of technology, and it must have value. The Defense Ministry plans to purchase a Sukhoi jet fighter and some of [the transaction] will be conducted in the form of barters,” Enggartiasto said.

    Enggartiasto added that the government will strive to minimize a risk of making mistake in relation to the decision. The government has appointed PT Perusahaan Perdagangan Indonesia to execute the trade transactions. Meanwhile, the Russian side will be represented by a Russian holding company that manufactures weaponry and defense equipment. 

    Russia is reported to be interested in Indonesia’s rubber products. Oke Nurwan, director general of foreign trades at the Trade Ministry, explained that Russia is particularly interested in crumb rubbers. 

    Oke added that the agreed product to be used for the barter will be regulated under a Minister’s Decree. The value of the exchange was reported to reach US$600 million.