Govt, Russia to sign 12 agreements

Abdul Khalik, The Jakarta Post, Jakarta

Indonesia and Russia will sign 12 different agreements, including ones on cooperation in the fields of military, energy and gas, and space exploration, during President Susilo Bambang Yudhoyono's visit to Moscow later this month.

Russian Ambassador to Indonesia Mikhail M. Bely said that besides witnessing the signing of the agreements, President Yudhoyono and his Russian counterpart Vladimir Putin would discuss a wide range of issues related to political and economic cooperation as well as global matters, including North Korea's and Iran's nuclear programs.

"All the agreements will serve as a legal framework for wider and more concrete cooperation in the future," the ambassador said during a press conference here Thursday.

Yudhoyono, who will make official visits to Japan and then Russia from Nov. 26 to Dec. 2., will also address a business forum at the Kremlin, with more than 100 businesspeople from Indonesia expected to attend.

The Foreign Ministry's director general for Europe and America, Eddhi Hariyadi, confirmed the two presidents would discuss a number of issues, including areas of possible cooperation in the political and economic fields, before witnessing the signing of around 12 agreements.

Indonesia and Russia are expected to sign an agreement that would enable Jakarta to purchase US$1 billion in military equipment for its Army, Navy and Air Force between 2006 and 2010

"It is known that Indonesia is keen to obtain more military equipment and technology and Russia has a lot to offer. Indonesia has announced its intention to purchase military equipment worth $1 billion from us. I can confirm that we have received a formal official request from the Indonesian government. It will be negotiated during the visit," Bely said.

Defense Minister Juwono Sudarsono announced last week that Indonesia had agreed to purchase $1 billion in military equipment from Russia in an effort to diversify its arms sources.

He said the purchase would prevent the country from being totally dependent on American military products, which is important in the event the U.S. imposes another arms embargo on Jakarta.

Four Russian Sukhoi combat aircraft were delivered to Indonesia in 2003, and Bely said the two countries were now closing a deal on the purchase of additional Sukhoi to strengthen Indonesia's Air Force.

"There are also plans to buy Russian carriers and submarines. Indonesia has a long purchasing list to be obtained from Russia. And we are ready to discuss the terms of credit export during the visit," the ambassador said.

In energy cooperation, Bely said Russia was willing to participate in oil and gas projects here, including possible participation in a gas pipeline project between Kalimantan and Java. The Bakrie Group recently won the tender to develop the pipeline.

He said Bakrie Group was set to meet with Russian energy and gas companies to discuss the pipeline project.

Russia and Indonesia will also sign an agreement on the peaceful use of nuclear energy, which could open the door to cooperation in the construction of a nuclear power plant here.

Indonesia has long wanted to build nuclear power plants to diversify its energy sources. Its initial plans were shelved in 1997 in the face of mounting public opposition and the discovery and exploitation of the large Natuna gas field.

But the plans were floated again last year, with the country's oil and gas reserves continuing to run thin and increasing threats of power shortages.

The government has chosen Ujung Lemah Abang on the Muria peninsula in Central Java as a possible site for the first plant, which could have an output of 1,000 megawatts.

In aviation and space exploration, Indonesia and Russia are negotiating to use Biak island as a launching pad for communication satellites.