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Indonesia gets 1 billion USD loan for Russian arms
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16:45, August 21, 2007

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Indonesia has got 1 billion U.S. dollars in loan from Russia to buy military helicopters and submarines from the country, local press said Tuesday.

The Indonesian Defense Ministry will use the loan to buy 10 MI- 17 helicopters, five MI-35P helicopters, two submarines, 20 infantry vehicles and weapon systems for four Sukhoi jetfighters already in service with the Air Force.

The arms purchase will take place between 2007 and 2010, reported the country's largest newspaper Kompas, quoting remarks by Defense Ministry secretary-general Lieu. Gen. Sjafrie Sjamsoeddin.

When defense officials from both countries met in Moscow Monday, the Indonesian delegation also expressed interest in buying six more Sukhois, comprising three SU-27SKMs and three SU-30MK2s.

Indonesia, which currently has only four Sukhois, is eager to have at least a squadron of the jets.

The Sukhoi purchase is estimated to cost 355 million dollars, but the deal will be separated from the 1 billion dollars loan, the newspaper said.

Source: Xinhua

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