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fter almost a year of political bickering, lawmakers have finally approved the Defense Ministry’s request to take up the US offer of so-called “grants” of 24 second-hand and aging F-16 jet fighters.

But as ministry officials and lawmakers refused to disclose the exact price of the transportation of the aircraft to Indonesia or the cost of upgrades, the deal may come with a high price tag estimated by analysts at almost US$800 million.

Approval for the deal was made during a meeting between the ministry and the House of Representatives’ Commission I overseeing defense, foreign affairs and intelligence late on Tuesday.

“We’ve agreed to approve the deal but with a set of conditions,” commission member Yorrys Raweyai of the Golkar Party said. “All the planes have to be upgraded from Block 25 to Block 52; all components needed for the upgrade have to be produced here in Indonesia; and the upgrade must be procured through the foreign military sales scheme that prevents the role of brokers.”

Block 52 is the highest upgrade level that enables the jet fighters to have bigger thrust and advanced avionic and electronic systems.

Yorrys said the government had agreed to conditions laid down by the lawmakers otherwise the deal would have been off.

He added that the House was set to allocate $200 million in the 2012 state budget for the aircraft upgrade.

Defense Ministry secretary-general Air Marshal Erris Herryanto confirmed the Commission’s approval, but said the $200 million was only a down payment. He refused to detail the total cost of the upgrade and of the transportation of the aircraft.

The ministry has decided to take the used aircraft rather than purchasing six brand new F-16s with Block 52 specifications for economic reasons. The six aircraft would cost a total of around $430 million.

“The government had to accept the conditions that we set out because it has to pay for the down payment early next year in order to catch up with a target of having two F-16 squadrons by 2014,” said another Commission member Effendy Choirie of the National Awakening Party (PKB).

He suspected the government’s decision to accept the conditions was likely aimed at pleasing the US after the recent visit of US Defense Secretary Leon Panetta and Senator Jim Webb.

Visiting US assistant secretary of state for East Asian and Pacific Affairs Kurt Campbell said the government’s decision to purchase the 24 used planes was effective in terms of cost and defense.

“Indonesia in the end will have 24 planes with very high capabilities, compared to only … six or eight if they bought new ones,” he said.

US Ambassador to Indonesia Scot Marciel said it was the Indonesian government who requested the used planes. “The cost of refurbishment will be borne by the Indonesian government.”

Institute of Defense and Security Studies executive director Connie Rahakundini Bakrie said the upgrade was likely to be limited or lower than Block 52 capabilities.

Aside from technical reasons, she argued the US was unlikely to let Indonesia possess jet fighters with more sophisticated capabilities than those owned by members of the Five Power Defense Arrangements (the United Kingdom, New Zealand, Australia, Singapore and Malaysia).

With such an upgrade, she said, the government might need to spend around $600 million in total for the engines and another $160 million to $190 million on training for the technicians and pilots.

“That does not even include upgrades of the weaponry systems and drag chutes although the good news is the planes will be compatible with many kinds of weapons,” Connie said.