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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 (£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 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 competition | Regional competition |
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 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 a collective security system based on multilateralism," Russian ambassador Alexander Ivanov told the BBC. | |
"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. |