OFFICIAL: Indonesia To Trade Coffee,Tea And Palm Oil For Su-35s Super Flanker

Kusumo

MEMBER
Joined
May 17, 2016
Messages
178
Reaction score
282
Country
Indonesia
Location
Indonesia
Indonesia offers coffee, tea & palm oil in exchange for Russian fighter jets
Published time: 7 Aug, 2017 14:51
Su-35-MAKS-2017.jpg


Indonesia says it will barter coffee, palm oil and other commodities for Russian fighter jets, calling US and European sanctions against Russia an opportunity to boost trade.

This barter under the supervision of both governments hopefully will soon be realized through the exchange of 11 Sukhoi Su-35s and a number of Indonesian exports, starting from coffee and tea to palm oil and strategic defense products, Indonesian Trade Minister Enggartiasto Lukita said on Monday, as quoted by Reuters.

Russian state-run corporation Rostec signed a memorandum of understanding for the deal with Indonesian state trading company PT Perusahaan Perdagangan Indonesia. Rostec says it is committed to implement the terms of a counter trade program.

At the same time, the Russian corporation reserves the option to choose which goods it receives in trade from Indonesia as well as the right to pick trade partners and producers for cooperation under the agreement, according to Rostec.

“The deal allows expanding supplies of Indonesian goods that are the most easily-suited for the Russian market. The range of products will be discussed by members of a specially created advisory group,” the company’s press release reads.

Indonesia already operates 16 Sukhoi jets, bought in 2003, when it was subject to a US and EU embargo on arms sales amid the alleged military’s human rights abuses in East Timor in 1999.

CeocyoPXIAAx0hQ.jpg-large.jpg


The Su-35 is a long-range ‘4++ generation’ super-maneuverable fighter jet. It is armed with an internal 30mm cannon and has 12 hard points with a combined capacity of 8,000kg, compatible with a wide range of unguided and guided missiles and bombs. Its maximum speed is 2,500 km/h, with a range of 3,400km, and a combat radius of around 1,600km.

Jakarta is trying to promote its palm oil products amid decreasing demand in Europe. Indonesia is the world’s number one producer of the commodity, which is widely used in cooking, cosmetics and biofuel.

Trade between Russia and Indonesia, the largest economy in Southeast Asia, has fallen in recent years, but Lukita said the wide-ranging US and EU financial and trade sanctions against Russia are an opportunity for Indonesia to revive trade through barter deals in other industries.

This is an opportunity that should not be lost from our grasp,” said Trade Ministry spokesman Marolop Nainggolan, as quoted by AP.

Following two years of protracted negotiations, Indonesian Defense Minister Ryamizard Ryacudu confirmed on July 26 that Indonesia will procure 11 Russian-made Su-35S ‘Flanker-E’ multirole fighter jets for the Indonesia Air Force (TNI-AU) with the first aircraft slated for delivery in 2018.


Source:
http://www.janes.com/article/72905/indonesia-russia-sign-su-35-countertrade-deal
http://thediplomat.com/2017/07/confirmed-indonesia-to-buy-11-su-35-fighter-jets-from-russia/
https://theaviationist.com/2017/08/09/indonesia-to-trade-coffee-and-palm-oil-for-su-35-super-flanker-combat-aircraft/
 

WebMaster

Administrator
Staff member
Joined
Nov 25, 2014
Messages
1,196
Reaction score
1,088
The oil for food concept seems a win win situation for Russia to beat sanctions imposed by the US/EU and for Indonesia to enhance its airforce capabilities but will the Russians agree to the deal is the question here. Indonesia on the other hand might put itself in unpleasant situation should the US/EU decided to impose countermeasures. Please keep this thread updated.
 

Kusumo

MEMBER
Joined
May 17, 2016
Messages
178
Reaction score
282
Country
Indonesia
Location
Indonesia
Weapons for food. Yeap.. sounds just like humanity start their very first civilization right?

The oil for food concept seems a win win situation for Russia to beat sanctions imposed by the US/EU and for Indonesia to enhance its airforce capabilities but will the Russians agree to the deal is the question here.
Well, according to many internationals and local news station in indonesia , Rostec already signed MoU with Indonesia’s state trading company. At least that's the first start. However I doubt if the second phase will be published because it will be full of confidential item of trade agreements and it will be more than just coffee, tea and palm oil for sure. Let's see if this Flanker finally arrived some where in 2018 or 2019 like they say.

Indonesia on the other hand might put itself in unpleasant situation should the US/EU decided to impose countermeasures. Please keep this thread updated.
Unpleasant condition with the West's because we do business with embargoed country?
Yes, might be... but just a little. Indonesia today's are non-allied nation, remember?

Impose countermeasure?
I doubt that and it's very unlikely.

Why?
Keep in mind's, this Indonesian Su-35 saga was take's too long already (2012) this before Russian intervention over Crimea (2013) and Syria (2015).
Heck.. this even a long way before the chinese Su-35 deal and yet the chinese already received their first batch early this year.
Pathetic isn't it? I'm sure you remember it too.
Honestly, I feels a bit bored to post this topic. In Indonesia this is like a never ending story in our community.

So this is pure unfinished business with Moscow. Exchange are just an offset because they are being embargoed at the moment and want to avoid any transaction with USD.

Such kind of thinking will be absurd and jeopardize the US/EU billions of dollars investments in Indonesia. In the end it's their loss either.
 
Last edited:

Kusumo

MEMBER
Joined
May 17, 2016
Messages
178
Reaction score
282
Country
Indonesia
Location
Indonesia
Indonesia on the other hand might put itself in unpleasant situation should the US/EU decided to impose countermeasures. Please keep this thread updated.
Replying your old questions with the newest answer.

US to Exempt India, Indonesia and Vietnam from CAATSA Sanctions

Our Bureau
10:02 AM, July 24, 2018
3140

The United States Senate Committee on Armed Services plans to exempt some US strategic allies; India, Indonesia and Vietnam from Countering America’s Adversaries Through Sanctions Act (CAATSA) that allows the nations to buy Russian military equipment without any threat sanctions.
“The final piece of legislation will exempt just three countries—India, Indonesia, and Vietnam—from a robust sanctions regime enacted and imposed last year,” Sen. Jim Inhofe Republican Senator from Oklahoma, who helped craft the annual defense bill as part of the House Armed Services Committee was quoted as saying by the Daily Beast Monday.
“They are currently buying [Russian] equipment that has to be maintained until they make the transition, and those three fall into that category,” Inhofe said in a brief interview.
“That was us,” Inhofe added, referring to the fact that Congress, not the Trump administration, decided which countries can obtain waivers.
According to the defense bill’s summary released Monday night, the “modified waivers” will “exclude the possibility of waivers for Russian intelligence agencies and other entities engaged in cyberattacks.” Additionally, the legislation requires the administration to certify whether India, Indonesia and Vietnam can remain exempt from sanctions. That means those countries must show that they are sufficiently reducing their reliance on Russian weapons systems.
The CAATSA was passed to punish Russia for its interference in elections and its involvement in Ukraine. A section of the bill requires sanctions against those countries doing business with Russian defense industry.


Defense Secretary James Mattis, earlier this year had requested Congress to grant national security waivers to sanctions on countries that have historically had relations with Russia but are now leaning towards US to buy defense equipment, namely India, Indonesia and Vietnam.
But last week, some top senators were arguing against waivers altogether. Sen. Bob Menendez (D-N.J.), the top Democrat on the foreign relations committee, told The Daily Beast that expanding the waiver process “undermine the very essence of those sanctions” against Russia, the Daily Beast reported.
But others, like Senate Majority Whip John Cornyn (R-TX) and Rep. Adam Smith (D-WA), the top Democrat on the House Armed Services Committee, argued that sanctioning India would drive that nation even closer to Russia.“The Pentagon has made a very strong case that we need India, we want to build a relationship there and not cut it off,” Smith told The Daily Beast last week.


Link

Conclusions: Mean these three countries can buy any defense equipment from Russia and the Americans will turn a blind eye. Unfortunately this not the case with long standing allies like Turkey and Philippines.
 
Last edited:

Similar threads

Top