Russia is set to sell Indonesia nearly a dozen Sukhoi fighter jets worth $1.14 billion in exchange for cash and commodities, officials in Jakarta say.
Indonesia is to ship about $570 million worth of commodities in addition to cash payments in return for 11 Sukhoi SU-35 fighter jets, which are expected to be delivered in stages starting in two years, Indonesian Trade Minister Enggartiasto Lukita said in a joint statement with Defense Minister Ryamizard Ryacudu on Tuesday.
Details of the type and volume of commodities were “still being negotiated.” Previously the Indonesian trade minister had said the exports could include palm oil, tea and coffee.
The deal is expected to be finalized soon between the Indonesian state trading company PT Perusahaan Perdangangan Indonesia and the Russian state conglomerate Rostec.
Russia is currently facing a new round of US-imposed trade sanctions over the crisis in Ukraine.
Meanwhile, Southeast Asia’s largest economy is trying to promote its palm oil products amid threats of a cut in consumption by European Union countries.
Indonesia, which produces 35 percent of the world’s certified sustainable palm oil (CSPO), is the world’s biggest producer of the commodity.
Jakarta is also trying to modernize its ageing air force after a string of military aviation accidents. Indonesia, which had a $411 million trade surplus with Russia in 2016, wants to expand bilateral cooperation in tourism, education, energy, technology and aviation among others fields.—Agencies