Election and budget restriction could scupper purchase of Sukhoi Su-27/30s and Mil Mi-35 assault helicopters
Indonesia plans to purchase another 14 Sukhoi fighters, but forthcoming elections and budget constraints could derail the acquisition.
President Megawati Sukarnoputri last week unveiled a 22 trillion rupiah ($2.4 billion) defence budget plan for 2005 and promised additional Sukhoi Su-27s or Su-30s and Mil Mi-35 assault helicopters would be acquired from Russia in the "not too distant future". Indonesia last year acquired two Su-27SKs, two Su-30MKs and two Mi-35s - which have already been delivered - in the first phase of a plan to bring on line one Sukhoi and one Mi-35 squadron. Last year's purchase was mainly funded through counter-trade. Industry sources say Indonesia will again rely on counter-trade to pay for additional aircraft, but that any deal is unlikely before the 20 September election. If Megawati loses the run-off to former army general Susilo Bambang Yudhoyono, the Sukhoi and Mil acquisition plan could be scrapped.
Sources also say the 2005 budget proposal, representing a 3% increase over 2004, leaves little or no funds for the procurement of Western aircraft. US manufacturers believe Susilo would introduce a more favourable budget and are lobbying to end an embargo that blocks the purchase of US-built combat equipment. But sources say Indonesia's accountability for human rights needs to be improved for the embargo to be lifted.
Indonesia can still acquire parts for military aircraft with commercial or non-combat roles, such as Bell 205 and 412 helicopters, and to advance plans to add used Lockheed Martin C-130 transports. But it is struggling to support platforms with lethal capabilities and to move forward with an army request to acquire excess US Bell UH-1 Hueys.
The government is not willing to funnel additional funds into local aircraft manufacturer Indonesian Aerospace (IAe), which is desperately trying to line up private capital and overseas partners in an attempt to survive. IAe aims to introduce new helicopter projects next year following the end of its Bell 412 and Eurocopter AS332 Super Puma assembly work. It also needs funds for planned improvements in its CN-235 military transport, which is suffering from an order book of less than 10 aircraft, and to bring to market a new 19-seat civil passenger aircraft.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
