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Russia to sell arms to Indonesia Russia to sell arms to Indonesia
(about 3 hours later)
The Russian president, Vladimir Putin, is in Indonesia to sign a deal giving his host nation a state loan of $1bn (£495m) to buy Russian arms. The Russian President, Vladimir Putin, is in Indonesia to sign a deal giving his host nation a state loan of $1bn (£500m) to buy Russian arms.
Mr Putin will hold several meetings with his Indonesian counterpart, Susilo Bambang Yudhoyono, to strengthen military and economic co-operation.Mr Putin will hold several meetings with his Indonesian counterpart, Susilo Bambang Yudhoyono, to strengthen military and economic co-operation.
More than 100 business leaders have travelled with Mr Putin.More than 100 business leaders have travelled with Mr Putin.
Correspondents say the visit is Russia's response to growing Chinese and American competition in the region.Correspondents say the visit is Russia's response to growing Chinese and American competition in the region.
For us the primary objective in this region is collective security system based on multilateralism Alexander Ivanov, Russian Ambassador to Indonesia Armed forces in Indonesia have been under-equipped due to years of sanctions from the European Union and the United States. For us the primary objective in this region is a collective security system based on multilateralism Alexander Ivanov, Russian ambassador to Indonesia Indonesia's armed forces are under-equipped, following years of sanctions from the European Union and the United States.
Indonesia will use the Russian cash to plug the holes in its ageing arsenal, with a shopping list including attack helicopters, submarines and amphibious tanks.
Indonesian-Russian relations have become closer since a meeting in Moscow last December, when the leaders pledged to improve economic and military ties.
Indonesia has already bought several jets from Russia. The new deal will make Moscow its main foreign arms supplier.Indonesia has already bought several jets from Russia. The new deal will make Moscow its main foreign arms supplier.
Regional competitionRegional competition
The BBC's correspondent in Jakarta, Lucy Williamson, says the last time a Russian leader came to Indonesia was 50 years ago, before the break-up of the Soviet Union. The last time a Russian leader came to Indonesia was 50 years ago, before the break-up of the Soviet Union.
Moscow was then a key Indonesian ally and the country's main arms supplier.Moscow was then a key Indonesian ally and the country's main arms supplier.
Russia says it does not want to return to the past, and that its new relationship in Indonesia is not about ideology but about cementing Russia's presence in a region with growing importance, our correspondent adds. Russia says it does not want to return to the past, and that its new relationship with Indonesia is not about ideology but about cementing Russia's presence in a region with growing importance.
"For us the primary objective in this region is collective security system based on multilateralism," Russian ambassador Alexander Ivanov told the BBC. "For us the primary objective in this region is a collective security system based on multilateralism," Russian ambassador Alexander Ivanov told the BBC.
Mr Putin is due to participate in a summit of the Asia Pacific Economic Co-operation (Apec), in Australia later this week. "We are ready to enhance co-operation with all interested parties to building an equitable world order," Mr Putin added in an opinion piece in The Jakarta Post.
Indonesian Defence Minister Juwono Sudarsono told reporters that part of the plan was "to reduce our dependency on the United States".
Money is another good reason for buying from Russia, the BBC's correspondent in Jakarta, Lucy Williamson, says.
Russian hardware is cheaper than American-made models, and Indonesia is getting a loan to buy it into the bargain, she says.
Russia also will sign agreements with Indonesia to help it revamp its mining and oil industries.