Jakarta – A recent barter agreement between Indonesia and Russia is projected to reach Rp 15 trillion (US1.14 billion), according to Trade Minister Eanggartiasto "Enggar" Lukita.
Among the commodities Indonesia will exchange for 11 Sukhoi fighter jets include tea, coffee, rubber and crude palm oil (CPO), Defense Minister Ryamizard Ryacudu said during a joint press conference in Jakarta on Tuesday.
Ryamizard welcomed the agreement, saying that the addition of 11 fighter jets of different specifications would help Indonesia improve its defense capabilities.
"There are three specifications of fighter jets; those that can only shoot missiles, jets that can only drop bombs and those that can do both," Ryamizard said.
The deal also includes the transfer of knowledge, as well as maintenance, repair and overhaul (MRO) of the aircraft.
Negotiations for the agreement had started with Russia's opening price of $150 million for each plane, which then dropped down to $90 million.
Enggar agreed that the MRO would benefit Indonesia as the country could use it to serve both domestic and foreign airlines.
"The process is expected to be completed. The Russian team will visit Indonesia next month," he added. Enggar secured the deal during a visit to Russia on Aug. 3-5. (bbn)