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Boeing ready to move forward with US-Indonesia Osprey deal
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A crew member walks around a V-22 Osprey tilt-rotor aircraft in a pre-departure check. Defense and aerospace giant Boeing has said it is ready to move forward with the sale of eight Ospreys to Indonesia. (Courtesy of/Boeing)
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efense and aerospace giant Boeing said it was looking forward to working closely with the United States and Indonesia to finalize a possible US$2 billion deal for Osprey tilt-rotor aircraft.
“Congressional notification is an important step in the United States’ Foreign Military Sales (FMS) process, so we’re pleased that a potential V-22 acquisition by Indonesia has entered this phase,” Boeing said in a statement to The Jakarta Post dated July 15.
“Currently, the US military is buying the V-22 under the Multiyear Procurement III (MYP III) contract. Completion of this sale in 2020 will allow Indonesia to receive the MYP III pricing already negotiated by the US Government for its aircraft.”
An agency of the US Defense Department, the Defense Security Cooperation Agency (DSCA) announced on July 6 that the US State Department had “made a determination approving a possible Foreign Military Sale to the Government of Indonesia of eight (8) MV-22 Block C Osprey aircraft and related equipment for an estimated cost of $2 billion”.
“The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today,” the DSCA said in a statement dated July 6.
After the DSCA announced the US State Department’s approval, many in the Indonesian defense establishment said they were unaware of any plan to acquire Osprey. The DSCA announcement of a FMS, however, can only be made after a letter of request is sent by a potential buyer.
In a FMS, a potential buyer negotiates with the US government instead of with defense contractors. One advantage of this method is that the purchase can be included in a US military procurement program that is already underway, often reducing the price for the buyer and increasing interoperability with the US.
