Jakarta has confirmed that it will buy 11 Sukhoi Su-35 fighter aircraft for $1.14 billion, with a major component of the deal involving agricultural commodities.
In a joint press conference, Indonesia's defence minister and trade minister stated that under the deal, Moscow will be obligated to accept 50% of the contract value in local commodities.
Russian arms supplier Rostec and Indonesian Trading Company (PPI) have been tapped as the "technical implementers" of the transaction. The fighter sale is also subject to Indonesia's 35% offset requirement.
The deal between Moscow and Russia was originally signed on 10 August, although Indonesia's Su-35 acquisition has been in discussion for several years.
A range of commodities which are available for export include rubber, cocoa, coffee, textiles, tea, seafood, and other commodities. Moscow can also obtain Indonesian defence products.
The 11 Su-35s will replace Jakarta's six Northrop F-5E fighters. Altogether, it is believed that Jakarta wants to obtain up to 16 Su-35s.
Source: FlightGlobal.com
