Indonesia Still Waiting for Russia's Decision on Commodity Barter with Sukhoi

Trade Minister Enggartiasto explained that the process of bartering Sukhoi with plantation commodities from Indonesia is still ongoing and has not experienced any obstacles. ") (The process) is still ongoing, they (Russia) have not chosen (the commodity)," the Trade Minister said on the sidelines of the International Conference and Call for Paper in Cikini, Jakarta, Tuesday (August 5, 2017). According to him, Indonesia has provided a list of commodities that are ready to be bartered with Russian Sukhois. However, the country has not yet provided an answer or choices as to which commodities Russia wants. "This is only the first time; don't expect it to be finished in a week, we just started, we just started counter trade (barter), there are many technical issues," said the Minister of Trade. However, the Minister of Trade emphasized that in carrying out the barter process, Indonesia does not want Russia to only choose one commodity to barter. According to him, an agreement is needed between the two countries regarding the selected commodities, including the agreed commodity prices, and this is still under discussion between the Russian state-owned enterprise, Rostec, and the Indonesian state-owned enterprise, PT Perusahaan Perdagangan Indonesia. "We can't force one commodity, and nor do we want to be asked for only one commodity," he explained. As is known, the government will conduct a barter or trade of a number of plantation commodities with 11 Sukhoi Su-35 aircraft from Russia. The purchase value of the 11 new generation fighter aircraft reaches 1.14 billion US dollars or equivalent to Rp. 15.16 trillion with an exchange rate of Rp. 13,300 per US dollar. Based on data from the Ministry of Trade, Russia has so far been the 24th largest trading partner in 2016. Last year, the value of Indonesia-Russia trade was recorded at 2.11 billion US dollars, with Indonesia enjoying a surplus of 410.9 million US dollars, all of which came from the non-oil and gas sector surplus. Indonesia's non-oil and gas exports to Russia were recorded at 1.26 billion US dollars, while non-oil and gas imports from Russia were 850 million US dollars. Source: Kompas --------------------- August 22, 2017 The Price of 11 Sukhoi Obtained from the Commodity Barter is Around Rp. 15 Trillion JAKARTA, KOMPAS.com - The Indonesian government has agreed to a cooperation agreement for a trade exchange with Russia regarding the procurement of Sukhoi fighter jets for Indonesia through a barter mechanism. The government plans to bring in 11 fighter jets that will be used to update Indonesia's fighter fleet with a total value of 1.14 billion US dollars or equivalent to Rp. 15.16 trillion. Some of the commodities that will be used as objects for barter are agricultural products including tea, coffee, rubber, palm oil, and products from Indonesia that have high added value. The two countries have also appointed their respective State-Owned Enterprises (SOEs) to operate and regulate the mechanism of implementing the barter until the price of agricultural commodities is agreed upon. With this trade exchange mechanism, what will Indonesia get? Minister of Defense Ryamizard Ryacudu revealed that Indonesia will have 11 fighter jets with different capabilities and advantages. This includes the transfer of Sukhoi technology from Russia to Indonesia, as well as facilities for fighter jet maintenance or what is known as Maintenance, Repair, and Overhaul (MRO). "There are three (specifications), some can shoot but can't drop bombs, some can drop bombs but can't shoot, and some can do both, complete," said Ryamizard during a press conference with the Minister of Trade Enggartiasto Lukita at the Ministry of Defense office, Jakarta, Tuesday (August 22, 2017). The Minister of Defense said the price had gone through several offers between the Indonesian and Russian governments. "I have been bidding for a long time, opening the price at 150 million US dollars, now it is 90 million US dollars complete," said the Minister of Defense. Trade Minister (Minister of Trade) Enggartiasto Lukita said his party would also offer various domestic flagship products that could be used as objects for barter, such as combat vehicles or defense equipment made by PT Pindad, then products from PT Dirgantara Indonesia. "Earlier there was MRO, so the maintenance is very good. If Indonesia has good and complete MRO, then it will become a maintenance center for other countries," said the Minister of Trade. With that, continued the Minister of Trade, next month the Russian government will visit Indonesia to continue discussions on the trade exchange. "This process is expected to run quickly because the Minister of Defense (Ryamizard Ryacudu) has pressured me to be able to speed up everything. We are ready to carry it out, early next month the Russian team will come for us to sit down and discuss everything," he said. Source: Kompas