DJ Blns In Trade Deals Expected During Putin's Indonesia Visit

JAKARTA (AP)--Russia and Indonesia are expected to sign billions of
dollars worth of weapons, mining and oil deals during Russian President
Vladimir Putin's first visit to the country this week, a presidential
spokesman said Tuesday.

Russia will grant Indonesia a US$1 billion credit line to buy Russian
military hardware, said spokesman Dino Pati Djalal, without providing
details.

Indonesian mining company Aneka Tambang (ANTM.JK) will sign a US$3 billion
deal with Russian aluminum giant United Company Rusal, while state-owned
oil company Pertamina plans to sign a US$1 billion agreement with Russia's
LukOil (LKOH.RS), he said.

Putin will meet with Indonesia President Susilo Bambang Yudhoyono on
Thursday during a one-day stop over on his way to the Asia-Pacific
Economic Cooperation forum in Australia.

The Russian investment will bring a much-needed boost to foreign capital
inflow and help revamp Indonesia's aging mining and oil facilities. It
comes just weeks after South Korea announced it signed US$8.5 billion in
trade and investment deals with Jakarta.

Indonesia has been looking for other sources of arms since the United
States - formerly its largest supplier of weaponry - cut military ties in
1999 over human rights concerns. The ban was lifted in 2005, but Jakarta
continues to look elsewhere for military hardware.

Indonesia is a major arms-buying client for Russia and has spent hundreds
of millions of dollars on fighter jets.

(END) Dow Jones Newswires

September 04, 2007 07:29 ET (11:29 GMT)

Copyright (c) 2007 Dow Jones & Company, Inc.- - 07 29 AM EDT 09-04-07


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