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Sukhoi purchase not tainted by collusion: Ministry

Source
Asia Pulse - July 4, 2003

Jakarta – Indonesia's Director General of Foreign Trade Sudar yesterday said the purchase of Russian-made jet fighters and helicopters was free from collusive practices.

"I am responsible for that," he said after a meeting with the House of Representatives' working committee tasked to look into the purchase.

Sudar attended the meeting to represent Industry and Trade Minister Rini MS Soewandi, who was having a meeting with the House Commission V for industry and trade.

It was the National Logistics Agency (Bulog) and not the Industry and Trade Ministry which had played a greater role in the purchase of two Sukhoi jet fighters and two Mi-35 helicopters from Russia, he said.

The purchase is part of a US$192 million countertrade deal signed by Indonesia and Russia during President Megawati Soekarnoputri's visit to Moscow last April. Under the deal, Russia will receive 30 different commodities of equal value (with the aircraft) from Indonesia in return for the military equipment. The commodities include crude palm oil, coffee, cacao, black pepper, textiles, electrical appliances and fishery products.

The Industry and Trade Ministry has reportedly assigned Bulog to implement the deal. The agency made a US$26 million downpayment to the Russian state company, Rosoboronoexport, after borrowing the money from state-owned Bank Bukopin.

Sudar denied an allegation that the President's family received a commission in the countertrade deal. No member of Megawati's family was involved in the deal, he said.

Sudar, who was formerly a trade attache with the Indonesian Embassy in Moscow said Indonesia was looking forward to signing more countertrade deals with other countries in order to expand non-traditional markets for its products.

He said the traditional markets for Indonesia, such as Europe and the United States, had reached a saturation point and Indonesia therefore needed to find new markets for its products.

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