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Indonesia Su-35 deal set at $1.14 billion US for 11 jets
Reuters reports that the value of Indonesia’s forthcoming purchase of 11 Sukhoi Su-35 Flanker-E multi-role fighters from Russia’s United Aircraft Corporation (UAC) is set at $1.14 billion U.S.
Of the amount, Indonesia will provide $570 million (i.e. 50%) in various commodities in-exchange for the Su-35 fighters. IHS Jane’s adds that $400 million U.S. will also return to Indonesia in the form of offsets, potentially in the form of local maintenance, repair and overhaul work. Deliveries are scheduled to commence in two years.
Indonesia first announced its intention to acquire the Su-35 in September 2015 when its Defence Minister, Ryamizard Ryacudu announced that the fighter was being sought to supplant the Indonesian Air Force’s (TNI-AU) aging Northrop F-5E Tiger II.
Jakarta and Moscow provisionally agreed to a deal in June. Earlier in August, both Russian and Indonesian officials announced that the Su-35 deal would involve a counter-trade element where Russia will acquire commodities from Indonesia, such as coffee and palm oil. Indonesian manufactures are also on offer.
Russia is reportedly hoping to use the counter-trade as a means to expand the supply of commodities in the midst of trade sanctions from the U.S. and European Union. Russia will have the right to choose the commodities it will acquire from Indonesia for the Flanker-E fighters.
Indonesia is the second export customer of the Su-35 Flanker-E.
Notes & Comments:
The Indonesian contract has a higher per-unit rate for each Su-35 than the deal China signed in November in November 2015, which was worth $2 billion U.S. for 24 aircraft. Inflation notwithstanding, it is possible that the higher price could be related to the counter-trade provision and – potentially – additional support (e.g. maintenance, logistics and training) packages for the fighters. However, the bartering provision will basically see Russia buying from Indonesia – Jakarta will only pay 50% of the value in cash (of which another $400 million will be reinvested into the Indonesian economy from Russia via offsets).
8 Comments
by Lasit
that is a good deal for Indonesia, and will add up to their F-16 and Su-30 MKK. But not really sure how these small numbers will add any value to the vast landscape they are expected to protect and more importantly against whom ? Malaysia may be ?
Half a squadron is too small a number in my mind, unless i don’t know something very special about these jets
by Shakeel
Well done to Indonesia for putting their national interests first, above petty politics.The SU35 will serve them well.
On the other side of the spectrum, we have gone into mute mode following Trumps onslaught. Gen Bajwa was shedding tears for Kulsoom Begum ,on her throat cancer. He seemed to have overlooked the detrimental consequences of Trumps speech on Pakistan.
Who cares about Begum Kulsoom – she has had one too many burgers with Nawaz in the past.
The absence of leadership & lack of quality aircraft has resulted in Pakistan teetering on the brink of being a failed state. The recent news is now we are going to the IMF for another bailout. Well done Mr Dar.
by Steve
Shakeel, I agree ATM we have no leadership whatsoever. Mediocre fill-in-the-blanks people are running the show. Political infighting is rife courtesy of democracy. Army is busy with various Zarb clear-ups etc. It’s bad timing for US policy announcement. It remains to be seen how US policy pans out. The FO gave a standard denial statement. The full details re Pakistan are not yet known so it may be wise to keep quiet while clarification is sought. Trump has little understanding of the situation and is following the establishment line. Problem is a lot of Pentagon types have been through Af and have been under fire and like to blame someone as they can’t get their head round the fact that a rag tag militia can battle the USA to a standstill, Af history notwithstanding. Pak is not helping anyone now and I think the military line about squashing all extremists on our side is believable. Mushahid Hussain did a good opinion peace on CNN yesterday. We have some links with Pentagon too and it’s time to reawaken them. We need to engage America with confidence and not be worried or scared. Not letting regional adversaries gain advantage is a prime aim. Our issues with them are recognised the world over and are not hidden. That may give us some space to manoeuvre. Let’s see how many billions they cough up as ordered. That’s a long discussion in itself.
Re; Su-35, we are among the top 5 producers for most agricultural products and don’t see why we can’t have a similar barter deal.
by Shakeel
Did you enjoy the Pak govt’s pitiful response. They simply are hooked towards the American orbit. Once a slave, always a slave? They are simply
pathetic.
by Steve
Agree
by Sri Henna
Malaysia is not the enemy. China is.
by VILLAPOL
China has already bought Su-35S from Russia too..!
by VILLAPOL
CHINA HAS ALREADY BOUGTH SU-35´s FROM RUSSIA TOO..!