The Jakarta Post
Indonesia will not solely use cash to pay for its purchase of French-made weaponry but also use commodities such as rubber.
Under a defense agreement signed between the French defense ministry and Indonesian Defense Ministry on Wednesday, the two countries will work on maritime security, antiterrorism efforts and military equipment.
Defense Minister Ryamizard Ryacudu said under the terms of the military equipment purchase, Indonesia must pay with either technology transfer or commodities.
"If we purchase their weapons, we must pay 35 percent of the price with technology or commodities, like rubber or whatever else," he said at the State Palace in Jakarta on Thursday.
"For the commodities, I will talk to the trade minister first," he said.
The MoU was signed during French President François Hollande’s one-day visit to Jakarta on Wednesday.
Aside from the defense agreement, four other government-to-government (G2G) agreements, namely in tourism, fisheries, research and city development were signed. (tas)
Your premium period will expire in 0 day(s)close x