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Indonesia negotiating purchase of warships from Britain

Source
Jakarta Globe - January 21, 2013

Ezra Sihite – Indonesia has sent a team to London to negotiate the purchase of warships from Britain, Defense Minister Purnomo Yusgiantoro said over the weekend, several days after meeting with his British counterpart Philip Hammond in Jakarta.

Purnomo said Indonesia is interested in buying three frigates from Britain in a bid to modernize the country's naval fleet. "We are still negotiating the prices," he said.

The team has checked the ships several times already and is satisfied with them, Purnomo said. "The problem is we have our budget ceiling. That's why must have the ships within our ceiling."

Purnomo added that the agreement on the purchase was conducted on a transfer-of-technology basis as Indonesia was aiming to produce its own similar ships in the future. Purnomo said that he conveyed Indonesia's intention to purchase the ships during his meeting with Hammond on Wednesday.

Hammond told the Financial Times recently that he was hopeful that defense sales could form a key part of last year's pledge by British Prime Minister David Cameron and President Susilo Bambang Yudhoyono to double bilateral trade by 2015.

He added, however, that as Indonesia sought to strengthen its military industry, its military contractors would have to incorporate more local production and the transfer of technology.

"The days of bashing metal in the northwest of England, crating it up and shipping it off are over," Hammond told the paper. "What people want to buy is the technology transfer and partnership but with local production, leveraging lower local production costs and also building an indigenous capability."

Indonesia has already sealed contracts with the British defense industry on supply of parts for Hawk jets and Scorpion battle tanks.

During their meeting on Wednesday, Hammond and Purnomo discussed defense training and defense system procurement. "Some of our equipment is from Britain, and we hope to share experience in that field," Purnomo said.

Yudhoyono and Cameron sealed a defense deal that would boost cooperation in research and development, investment and production.

Yudhoyono told a seminar at London's Royal College for Defense Studies last year that Indonesia would continue to modernize its defense. He said he was happy that Britain is assisting in that area.

After last week's meeting, Purnomo said that Indonesia would consider emulating Britain's army reserve.

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