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Russia to sell arms to Indonesia Russia, Indonesia agree arms deal
(about 9 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. 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 will hold several meetings with his Indonesian counterpart, Susilo Bambang Yudhoyono, to strengthen military and economic co-operation. Mr Putin also held talks with his Indonesian counterpart Susilo Bambang Yudhoyono during the one-day visit.
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. 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 will make Moscow its main foreign arms supplier. Indonesia has already bought several jets from Russia. The new deal makes Moscow its main foreign arms supplier.
Regional competitionRegional 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.
"For us the primary objective in this region is a collective security system based on multilateralism," Russian ambassador Alexander Ivanov told the BBC. 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."
"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. Mr Yudhoyono said that Indonesia would use the loan to "modernise our arms and military equipment for the navy, air force and army".
Indonesian Defence Minister Juwono Sudarsono told reporters that part of the plan was "to reduce our dependency on the United States". Earlier on Thursday Defence Minister Juwono Sudarsono said 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 also cheaper than American-made models.
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.