Jakarta (Agencies) – About 1,000 people protested Tuesday at the office of the national food agency Bulog over a deal which would see its funds used to buy Russian fighter aircraft. The Justice and Welfare Party called the demonstration to protest against the controversial aircraft deal and against rice imports which have pushed prices down for local farmers, said party president Hidayat Nurwahid.

"The funds should have been used to stabilise the price of foodstuffs as is the task of Bulog but they have instead been used for things that are outside the authority of Bulog," Nurwahid told Antara.

A Bulog spokesperson said agency executives are expected to meet protest leaders later on Tuesday. A security official at the agency estimated the crowd size at around 1,000.

A parliamentary committee is investigating the deal, which analysts say could embarrass President Megawati Sukarnoputri before elections next year.

Megawati signed the 197 million dollar agreement to purchase four Sukhoi jet fighters and two Mi-35 helicopters with President Vladimir Putin during her visit to Russia in April.

The deal apparently bypassed normal procedures because parliament and the defence ministry were not involved.

Funds for the down-payment were to come from Bulog, which has been at the centre of several previous scandals. Former president Abdurrahman Wahid was investigated for alleged misuse of Bulog funds.