Russia, Indonesia to Avoid Dollar in Su-35 Sale
Indonesia offers to transfer billions worth of coffee, tea, and palm oil instead
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Indonesia says it will barter coffee, palm oil and other commodities
for Russian fighter jets, calling US and European sanctions against
Russia an opportunity to boost trade.
“This barter under the supervision of both governments hopefully will
soon be realized through the exchange of 11 Sukhoi Su-35s and a number
of Indonesian exports, starting from coffee and tea to palm oil and
strategic defense products,” Indonesian Trade Minister Enggartiasto
Lukita said on Monday, as quoted by Reuters.
Russian state-run corporation Rostec signed a memorandum of
understanding for the deal with Indonesian state trading company PT
Perusahaan Perdagangan Indonesia. Rostec says it is committed to
implement the terms of a counter trade program.
At the same time, the Russian corporation reserves the option to
choose which goods it receives in trade from Indonesia as well as the
right to pick trade partners and producers for cooperation under the
agreement, according to Rostec.
“The deal allows expanding supplies of Indonesian goods that are the
most easily-suited for the Russian market. The range of products will
be discussed by members of a specially created advisory group,” the
company’s press release reads.
Indonesia already operates 16 Sukhoi jets, bought in 2003, when it was
subject to a US and EU embargo on arms sales amid the alleged
military's human rights abuses in East Timor in 1999.
The Su-35 is a long-range '4++ generation' super-maneuverable fighter
jet. It is armed with an internal 30mm cannon and has 12 hard points
with a combined capacity of 8,000kg, compatible with a wide range of
unguided and guided missiles and bombs. Its maximum speed is 2,500
km/h, with a range of 3,400km, and a combat radius of around 1,600km.
Jakarta is trying to promote its palm oil products amid decreasing
demand in Europe. Indonesia is the world’s number one producer of the
commodity, which is widely used in cooking, cosmetics and biofuel.
Trade between Russia and Indonesia, the largest economy in Southeast
Asia, has fallen in recent years, but Lukita said the wide-ranging US
and EU financial and trade sanctions against Russia are an opportunity
for Indonesia to revive trade through barter deals in other
“This is an opportunity that should not be lost from our grasp,” said
Trade Ministry spokesman Marolop Nainggolan, as quoted by AP.