Su-27SKM, Su-30MK2 Aircraft, Mi 17B-5 Helicopters and BMP-3F

Rusia Sale And Transfer Technology Su-27SKM, Su-30MK2 Aircraft, Mi-17B-5 Helicopters and BMP-3F Armoured to TNI-AU.

Building on this first contract proved harder than expected, one significant factor being a change of government and the election of President Susilo Bambang Yudhoyono in 2004. Then at the end of 2004 came the tsunami disaster and other matters were on the mind of the Indonesian leadership. The significant development in 2005 was a decision to purchase One element of the major defence package being negotiated with Russia is the supply of up to 20 BMP-3F armoured vehicles for the Marines. The BMP-3, a standard version of the Cyprus National Guard is shown here, is notable for its high level of firepower and will be an ideal addition to Indonesia’s armoured vehicle fleet. six Mi-17B-5 helicopters from Kazan Helicopters for the TNI-AD.

The first three of these were delivered to Indonesia in early July this year Moving into 2006 there were ongoing negotiations on the acquisition of more Sukhoi aircraft, but this has become subsumed into a much larger and more complex discussion. Indonesia and Russia had started talking about an ambitious defence equipment package covering the supply of combat aircraft, helicopters, ships, submarines, armoured vehicles and other equipment. The stumbling block was funding such a programme, an issue that appeared to be resolved when the Russian side indicated that it might be willing to arrange a funding package to cover the purchases. Real progress appeared to be made in 2007. In July of that year it was an nounced that Indonesia would be purchasing Russian corvettes, in August the purchase of a second batch of Sukhoi aircraft was confirmed and then in September the then President Putin visited Jakarta.

One of the key issues of the visit was settling the defence package and the financing issues surrounding it. All of these outstanding issues appeared to have been resolved and it was also stated that the second batch of Sukhoi aircraft consisting of three Su-27SKM and three Su-30MK2 would be delivered from October 2008 through to 2012.

By the time all of the talking had been completed, the size of the Russian defence systems package had stabilised at 22 helicopters, 20 BMP-3F armoured vehicles and two Project 636 Kilo class submarines. This would be funded by a $1 billion line of credit arranged via Russian banks. The Sukhoi contract would not be part of this package and would be funded separately. The arrival of the first three of the second batch of Sukhoi aircraft has been delayed, due to financing problems and obtaining parliamentary approval a situation that still awaits resolution.

BMP-3F

As things stand at present, the funding package with Russia still has to be solidified although this is anticipated shortly. It is believed that that the BMP-3F purchase from Kurganmashzavod is now down to 18 vehicles and that part of the helicopter order will include six Mi-35 attack helicopters. Bearing in mind the international financial situation, negotiating any major line of credit will be considerably more complex than it was a mere six months ago. Despite this there is confidence that the Russian defence package will go ahead.

This billion dollar package will demonstrate that Russia has become a key equipment supplier to Indonesia. However, this relationship has even more potential. In terms of the Sukhoi combat aircraft, there will be a requirement to upgrade the existing Su-27SK/Su-30MK fleet to the Su-27SKM/Su-30MK2 standard. The outline TNI-AU requirement calls for a mixed squadron of some 16 Su-27SKM/Su-30MK2 aircraft indicating a need for six more aircraft. In reality the TNI-AU would need to have considerably more Sukhoi aircraft to meet its true requirements, but that will inevitably be a function of funding.

In the long term Indonesia promises to become a very important market for Russian defence equipment.
The evolution of the relationship between the two countries also shows the growing sophistication of the Russian defence industry; back in 2003 they were taking payment in cash and countertrade, now they are capable of providing billion dollar financial packages.