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Russia, Indonesia agree arms deal | |
(about 9 hours later) | |
Russian President Vladimir Putin has witnessed the signing of a deal in Jakarta to give Indonesia a state loan of $1bn (£500m) to buy Russian arms. | |
Mr Putin also held talks with his Indonesian counterpart Susilo Bambang Yudhoyono during the one-day visit. | |
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. |
Indonesian armed forces are badly equipped, following years of sanctions from the EU and US. | |
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. | 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. | 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 makes 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. | 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. | 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. |
After the deal was signed, Mr Putin told reporters that the two leaders had agreed "to expand co-operation in areas we consider most important - such as energy and mining, aviation, communications and others." | |
Mr Yudhoyono said that Indonesia would use the loan to "modernise our arms and military equipment for the navy, air force and army". | |
Earlier on Thursday Defence Minister Juwono Sudarsono said that part of the plan was "to reduce our dependency on the United States". | |
Russian hardware is also cheaper than American-made models. | |