Purchase of Sukhoi Aircraft has Potential for Indonesia-Russia Exports
By : Herry Barus And Aldo Bella Putra | Wednesday, August 23 2017 - 13:03 IWST

5166
INDUSTRY.co.id - Jakarta- The purchase of Sukhoi SU-35 fighter from Russia worth 1.14 billion US dollars gives the potential of export to Russia for Indonesia by 50 percent from the purchase or 570 million US dollars.
Trade Minister Enggartiasto Lukita and Defense Minister Ryamizard Ryacudu said the Indonesian and Russian governments had agreed to buy back in the procurement of defense equipment security equipment (Alpalhankam) in the form of Sukhoi SU-35 fighter aircraft.
"The percentage in this procurement of SU-35 is 35 percent in the form of offset and 50 percent in the form of buy-back, thus Indonesia earns export value of 570 million US dollars from 1.14 billion US dollars of SU-35 procurement," said Minister Enggar at a press conference at the Ministry of Defense Jakarta, Tuesday (8/22/2017)
Enggar explained that the Indonesian Government buys SU-35 from Russia and Russia as the selling country is obliged to buy a number of Indonesian export commodities.
Article 43 of Law No.16 Year 2012 on Defense Industry is stated that every procurement of Alpalhankam from abroad shall include trade returns, local content and a minimum of 85 percent ofset where local content and / or ofset is at least 35 percent.
Since the Russian side is only able to provide offset and local content of 35 percent, then Indonesia reaffirms the purchase of SU-35 carried out through the purchase with a value of 50 percent of the contract value.
With the yield scheme, Indonesia gets export potential of 50 percent of the purchase value of SU-35.
The agreement was signed on August 10, 2017 during the implementation of the Trade Mission to Russia led by the Minister of Trade. The Russian and Indonesian governments agreed to appoint Rostec and PT Perusahaan Perdagangan Indonesia (PPI) as the technical implementers of the buyback.
In the MoU, Rostec guarantees that it will buy more than one export commodity, with options of processed rubber and derivatives, CPO and derivatives, machinery, coffee and derivatives, cocoa and derivatives, textiles, tea, footwear, processed fish, furniture, copra, And its derivatives, resins, paper, spices, defense industry products, and other products.
"With this rate of return, Indonesia can export commodities that have been exported or have not been exported before," said Enggar.
He added that Rostec is given the freedom to choose exporters so that they can get Indonesian export products that are highly competitive. This buyback mechanism then uses a working group whose members are from Rostec and PT PPI.
Russia is Indonesia's 24th trading partner by 2016. The total value of Indonesia-Russia trade in 2016 was 2.11 billion US dollars and Indonesia got a surplus of 410.9 million US dollars, all of which came from non-oil and gas sector surplus.
Indonesia's non-oil exports stood at US $ 1.26 billion, while Indonesia's non-oil and gas imports from Russia were 850.6 billion US dollars. There is also the development of Indonesia's non-oil exports to Russia in 2012-2016 recorded a positive 8.5 percent. (Ant)
Read Also
Jababeka Bizpark Officially Conducted Groundbreaking and Ready for…
Gov’t to Continue Disbursing Rice Assistance
The Indonesian Embassy in Cairo Receives Aid for Palestine
President Jokowi Inaugurates Soedirman National Defense Central Hospital
Celebrating 65 Years of Indonesia - Cambodia Relations: Indonesian…
Today's Industry

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…
News Comment