Indonesia, Russia Plan to Discuss Rubber - Sukhoi Barter Deal

TEMPO.CO, Jakarta - Indonesia and Russia will discuss plans to exchange rubber for Sukhoi SU3-5 aircraft in a barter deal.

Trade Minister Enggartiasto Lukita said that the plan will soon be finalized. Further negotiation will be carried out during a trade mission to Russia on August 3-5.

“The barter deal is almost finalized. But we will still offer more Indonesian products for export to Russia other than the bespoke rubber,” Enggartiasto stated in a written statement received today, August 3.

Read: Govt to Exchange Rubber for Russian Sukhoi

Enggartiasto expects an accelerated negotiation of the Indonesia-Russia Preferential Trade Agreement (PTA) as well as Indonesia-Eurasia Free Trade Agreement (FTA).

Aside from a barter deal, the Minister added that the trade mission is part of Indonesia’s sustainable palm oil diplomacy. The decision to purchase Sukhoi aircraft was taken after President Joko Widodo’s visit to Russia last year.

“Indonesia’s growth strategy always takes into account the Indonesian government’s commitment to the environment. Indonesia clearly supports sustainable palm oil exports,” he explained.

The Trade Ministry reports that bilateral trade between Indonesia and Russia stood at US$2.11 billion. Indonesia enjoyed a trade surplus of US$411 million last year. The country’s non-oil and gas exports to Russia grew by 8.5 percent in the last five years with an export value of US$1.3 billion in 2016.

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