Sukhoi SU-35 Officially Exchanged with Commodities
Sukhoi SU-35 Officially Exchanged with Commodities
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JAKARTA - Indonesia government have agreed to buy 11 Sukhoi SU-35 fighter planes from Russia worth 1.14 billion US dollars with a barter of various commodities from Indonesia to be exported to Russia.
Minister of Trade, Enggartiasto Lukita, said that both countries appointed Rostec and PT Perusahaan Perdagangan Indonesia (PPI) as the buying and selling technical practitioners of Sukhoi aircraft with various commodities from Indonesia, such as rubber processing, furniture and palm oil and its derivatives.
"Originally they expected rubber, but we asked for it.we told Rostec, the commodity and the exported products have added value. We are the same as Russia, selling the plane there is added value, we also sell something that has added value," said Minister Enggar at the Ministry of Defense office, Jakarta on Tuesday (22/8).
Enggar explained that Indonesia will not export crude rubber, at least refined products or other defense industry products not produced by Russia.
In an agreement signed on August 10, 2017, during the implementation of the Trade Mission to Russia led by the Minister of Trade, Rostec guaranteed to buy more than one export commodity, with options in the form of processed rubber and derivatives, CPO and derivatives, machinery, coffee and derivatives, cocoa and derivatives , Textiles, tea, footwear, processed fish, furniture, copra, plastics and derivatives, resins, paper, spices, defense industry products, and other products.
Rostec parties are also given the freedom to choose exporters so they can get Indonesian export products that are highly competitive. In addition, Rostec also requested that the delivery of commodities not only to Moscow alone, but also to some places even Eurasia. The Ministry of Trade also declared no objection as far as to give added value to Indonesia's trade.
![Sukhoi SU-35 Officially Exchanged with Commodities]()
According to Enggar, the purchase of 11 Sukhoi SU-35 fighter aircraft from Russia worth 1.14 billion US dollars gives the potential of export to Russia for Indonesia by 50 percent of the purchase or worth 570 million US dollars.
"The percentage in this procurement of SU-35 is 35 percent in offset and 50 percent in the form of buy-back, thus Indonesia earns export value of 570 million US dollars from 1.14 billion US dollars of SU-35 procurement," Enggar said.
There is also the purchase of this aircraft to replace the F-5 aircraft to improve defense and security in the country.
"The procurement process is two years after the contract is signed," said Defense Minister Ryamizard Ryacudu.
Minister of Trade, Enggartiasto Lukita, said that both countries appointed Rostec and PT Perusahaan Perdagangan Indonesia (PPI) as the buying and selling technical practitioners of Sukhoi aircraft with various commodities from Indonesia, such as rubber processing, furniture and palm oil and its derivatives.
"Originally they expected rubber, but we asked for it.we told Rostec, the commodity and the exported products have added value. We are the same as Russia, selling the plane there is added value, we also sell something that has added value," said Minister Enggar at the Ministry of Defense office, Jakarta on Tuesday (22/8).
Enggar explained that Indonesia will not export crude rubber, at least refined products or other defense industry products not produced by Russia.
In an agreement signed on August 10, 2017, during the implementation of the Trade Mission to Russia led by the Minister of Trade, Rostec guaranteed to buy more than one export commodity, with options in the form of processed rubber and derivatives, CPO and derivatives, machinery, coffee and derivatives, cocoa and derivatives , Textiles, tea, footwear, processed fish, furniture, copra, plastics and derivatives, resins, paper, spices, defense industry products, and other products.
Rostec parties are also given the freedom to choose exporters so they can get Indonesian export products that are highly competitive. In addition, Rostec also requested that the delivery of commodities not only to Moscow alone, but also to some places even Eurasia. The Ministry of Trade also declared no objection as far as to give added value to Indonesia's trade.
According to Enggar, the purchase of 11 Sukhoi SU-35 fighter aircraft from Russia worth 1.14 billion US dollars gives the potential of export to Russia for Indonesia by 50 percent of the purchase or worth 570 million US dollars.
"The percentage in this procurement of SU-35 is 35 percent in offset and 50 percent in the form of buy-back, thus Indonesia earns export value of 570 million US dollars from 1.14 billion US dollars of SU-35 procurement," Enggar said.
There is also the purchase of this aircraft to replace the F-5 aircraft to improve defense and security in the country.
"The procurement process is two years after the contract is signed," said Defense Minister Ryamizard Ryacudu.
(rnz)
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