Poland Lends $260m To Indonesia, Expects Export Contracts

Poland Lends $260m To Indonesia, Expects Export Contracts

Polish News Bulletin, 17 maart 2006

Poland has offered a $260m loan to Indonesia. In return the government is counting on a revival of trade relations with the country. Indonesia has previously bought Polish helicopters and airplanes, and has now ordered patrol boats from Gdynia-based Navy Shipyards. Also helicopter maker PZL Swidnik hopes for a contract, as Indonesia is seeking a supplier of 14 helicopters. "A large loan for Indonesia is a rational and necessary move. Especially since it is tied to military export contracts," said think tank IBNGR expert Maciej Grabowski. Poland's Industrial Development Agency ARP sees the possibility of extended cooperation. The Indonesian government also wants to accelerate such industrial cooperation. It is the second such deal in Poland's recent history. Last year Poland signed a loan that triggered Indonesia's order of ten Skytruck planes constructed in ZPL Mielec. Poland's budget assigned ZL1.01bn in funds for such export-aid loans, an increase of ZL8m versus 2005.

Indonesia to Buy 8 Russian Sukhoi Jet Fighters

MosNews, 30 maart 2006

Indonesia's Defense Minister Juwono Sudarsono said on Wednesday, March 29, that in 2006-2009 his country plans to annually purchase two Sukhoi jet fighters from Russia. The minister said the purchase aims at anticipating possible ban by western countries of buying spare parts of military equipment. "The plan is (to buy) two planes per year up to 2009. We anticipate the possibility of imposing embargo by western countries," Juwono said, quoted by the Xinhua agency.
Currently, Indonesia had four Sukhoi planes bought from Russia. By 2009 the country will have 12 jets. The minister said Indonesia has rejected similar offer from some Eastern European countries and insists to buy from Russia, as both sides once had official military cooperation.
Indonesian military had been embargoed on military equipment purchase by the United States, following the accusation of gross violation of human rights during the referendum for Independence in East Timor in 1999. The ban was lifted recently due to Indonesia's seriousness in combating terrorism and reform of the military force.
MosNews has also reported on Wednesday that Russia has offered Indonesia a $1 billion loan to finance modernization of its military. If the Indonesian government approves the loan, Indonesian military will spend $200 million of this sum to buy Russian Mi-17 combat helicopters.