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Jakarta Post

Indonesia-Russia working group to discuss Sukhoi 'counterpurchase' details

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, August 14, 2018   /   11:21 am
Indonesia-Russia working group to discuss Sukhoi 'counterpurchase' details The Trade Ministry's international trade director general, Oke Nurwan (Tribunnews/Apfia)

The Trade Ministry’s international trade director general has said that a working group representing the Indonesian and Russian governments would soon meet to discuss the technical aspects of purchasing 11 Sukhoi fighter aircraft through a countertrade scheme.

“The Trade Ministry and the Russian government will talk thoroughly in the working group. All details will be discussed,” international trade director general Oke Nurman said on Monday in Jakarta, as reported by kompas.com.

Indonesia has agreed to purchase 11 Sukhoi aircraft worth US$1.14 billion from Russia. In exchange, Russia is required to buy at least $570 million – about half of the aircraft's value – in several Indonesian commodities, such as palm oil, coffee, rubber and tea.

Oke did not call the scheme barter, and instead used the term "counterpurchase".

Through the working group, he said, Indonesia would prepare a list of commodities it would offer to Russia, while Russia would prepare a list of commodities it wanted to buy, and discuss other goods that did not appear on both lists.

“If they want coffee [for example], although we are not ready, we will discuss the issue in the working group,” said Oke.

Indonesia and Russia had already agreed initially to the commodities that Russia will purchase, but a more detail agreement was needed before the final transaction. “Russia-Indonesia trade involves many items, some of which will be discussed in the working group,” he said.

Oke added that the working group would commence discussions soon, and that his office was currently preparing its structure and personnel. (bbn)