also: Indonesian forces to acquire 1bn dollars-worth of Russian equipment; JP: Air forces conduct joint disaster relief maneuvers

Indonesia to buy six Sukhoi jets: Russia

ZHUKOVSKY, Russia, Aug 21 (AFP) -

Indonesia is set to buy six Sukhoi fighter jets Tuesday, a representative from Russian weapons exporter Rosoboronexport said at an airshow outside Moscow.

"The contract is for 330 to 350 million dollars. It's for six Su-30 jets. The contract will be signed at 3:00 pm (1100 GMT)," an official with Rosoboronexport told AFP at the start of Russia's major annual air show at the Zhukovsky airfield just south-east of the capital.

The Su-30 is a fighter jet first put into service in the mid-1990s.

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BBC Monitoring Former Soviet Union August 21, 2007

Indonesian forces to acquire 1bn dollars-worth of Russian equipment

Source: Kompas, Jakarta, in Indonesian 21 Aug 07 p 10

Text of article by Suryopratomo headlined "One billion US dollars from Russia", published by Indonesian newspaper Kompas on21 Aug

As part of the commitment on the bilateral agreement that was signed by the two countries on 1 December 2006, Russia will provide one billion USD in loan for Indonesian armament procurement for the period of 2007-2010.

Indonesia's Ministry of Defence decided to use the loan to acquire 10 MI-17-V5 helicopters and five MI-35P helicopters along with weaponry for the TNI AD [Indonesian Army]; two Kilo class submarines and 20 BMP-3F infantry battle vehicles for the TNI AL [Indonesian Navy]; and six avionic equipment packages and Sukhoi weaponry for the TNI AU [Indonesian Air Force].

Ministry of Defence Secretary General Lieutenant-General Sjafrie Sjamsoedin, who led the delegation on the commission III Indonesia-Russia meeting in Moscow on Monday, said that government to government cooperation on military equipment procurement could be a model for further military cooperation.

"Similar to the Ministry of Defence in Indonesia, the Federal Service for Military Technical Cooperation (FSMTC) is expected to be the only gateway to formulate and procure military equipment to Indonesia," said Sjafrie.

The Deputy Director of the FSMTC, Lieutenant-General V.K. Dzirkalin, who was the head of Russian commission shared Indonesia's view. Furthermore, he added, Russia had acknowledged Indonesia's financial difficulties in developing a Defence system, thus a more flexible method of financing was opened for formulation.

The Director General of the Defensive Facility, Air Vice-Marshal Slamet Prihatino, said that the procurement of arms through a loan instalment was needed to strengthen the Indonesian Defence Force in protecting territorial integrity.

Military armaments will produce a deterrent effect to other countries who attempt to disturb Indonesia's territorial sovereignty.

"What we are doing right now is limited to our budget capability, but will be beneficial because it produces a deterrent effect to other countries," said Slamet.

He sets out an example of the six various avionic equipment and weaponry procurement for Sukhoi. With the additional equipment, TNI AU [Indonesian Air Force] planes will be equipped with better avionic systems, electronics, and weaponry to guard Indonesian territories.

The same thing is also true when the two submarines will be available later. TNI AL [Indonesian Navy] will have the mobility to guard Indonesian seas which are often trespassed by foreign vessels for various purposes including fish theft.

Ministry of Defence staff expert on Economic Affairs Adnan Ganto regarded the Russian loan instalment as competitive and favourable with 5.3 percent annual interest rate which was lower compared to the loan instalment rate on export procurements for national armament OECD.

"Russia is not a member of OECD, they can not provide export loan instalments. But, with the rate of 5.3 percent, the interest rate from the Russian government proves to be lower because there are no other fees that have to be paid, whether it is for loan commitment, management, or country risk," said Adnan Ganto.

The Russian government loan will mature in 15 years, with the first five years acting as a grace period where the borrower does not have to pay for the principal nor the interest amount.

Also discussed at yesterday's meeting, was the procurement of six Sukhoi planes, which consisted of three SU-27 SKM and three SU-30 MK2. With the new additions, TNI AU [Indonesian Air Force] will own 10 Sukhoi planes.

"The signing agreement of the six Sukhoi planes procurement on Tuesday also coincides with Moscow's outer space exhibition," said Dzirkalin.

The procurement of six Sukhoi worth 355 million USD will be dealt with separately since the cost is not covered by the one billion USD Russian government loan.

"We will look for a finance method with an interest rate that is not burdening," said Adnan.

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The Jakarta Post Tuesday, August 21, 2007

Air forces conduct joint disaster relief maneuvers

Desy Nurhayati, The Jakarta Post, Jakarta

The air forces of 19 Pacific nations started maneuvers here Monday for the 2007 Pacific Airlift Rally, a joint military exercise aimed at honing the forces' ability to handle natural disasters.

The exercise, held regularly every two years, is being hosted by Indonesia and the United States. This year is the first time the exercise has been held in Indonesia since its launch in 1997.

Assistant for operations to the Indonesian Air Force chief, Air Rear Marshall Edy Harjoko, said the joint exercise was aimed at improving skills and coordination among the forces in the event of a major natural disaster.

"We hope that through this training the air forces will be able to handle aid immediately and efficiently avert further hardships caused by a natural disaster," he said while addressing the opening of the event at the Halim Perdanakusuma Air Base in East Jakarta.

The five-day exercise, involving 500 air force personnel, will simulate responses to an 8.5-magnitude earthquake with an epicenter 214 nautical miles (approximately 396 kilometers) southeast of Jakarta, in the vicinity of Yogyakarta.

In the scenario, the earthquake, caused by thrust-faulting between the Australian plate and the Sumba plate inflicts damage across Java, Bali and Lombok islands.

The virtual earthquake also causes over 140,000 deaths, as well as destroying buildings and communications, transportation, electricity, gas and water infrastructure.

Participants have been divided into two groups: the Command Post Exercise (CPX) and the Field Training Exercise (FTX).

"The CPX will arrange the distribution of the aid, while the FTX will deliver the aid immediately after receiving orders from the CPX," said a member of the exercise's steering committee, Lt. Col. Sungkono.

The FTX comprises members of the air forces of Indonesia, the U.S., Malaysia and Bangladesh. The four forces flew from Halim Perdanakusuma to the Indonesian Air Force training field in Gorda, Tangerang, to distribute food and medicine.

The forces used six carrier aircraft -- four C130 Hercules owned by Indonesia, the U.S. and Malaysia, one U.S. C17 Globe Master and one Bangladeshi AN32 Antonov.

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Joyo Indonesia News Service ==== ========= ==== ======= In memory of JoyoNews founder, leader, and inspiration Bapak Gordon Bishop 8 October 1946 - 21 July 2007