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Indonesia barters coffee, palm oil for Russian fighter jets

AP  |  Jakarta 

Indonesia said today that it will barter coffee, palm and other commodities for 11 Russian- made Sukhoi fighter jets, calling US and European sanctions against an opportunity to boost the Southeast Asian nation's trade.

Indonesian Ministry of Trade spokesman Marolop Nainggolan said that a memorandum of understanding for the barter was signed August 4 in Moscow between Russia's Rostec and PT. Perusahaan Perdagangan Indonesia, both state-owned companies.

In a statement, Indonesian Minister of Trade Enggartiasto Lukita said the deal would be realised soon. Coffee, tea, palm and defence equipment will be exchanged for the Sukhoi Su-35 jets, he said.

No value for the barter was announced.

Indonesia already operates 16 Sukhoi jets, making its first purchase in 2003 while the country was subject to a US embargo on arms sales due to the military's human rights abuses.

Trade between and Indonesia, the largest economy in Southeast Asia, has tumbled since 2012, but Lukita said the wide-ranging European Union and US financial and trade sanctions against are an opportunity for Indonesia to revive trade through barter deals in other industries.

"This is an opportunity that should not be lost from our grasp," he said.

The Indonesian defence ministry said earlier this month that the Sukoi deal had been finalised but didn't reveal on what terms.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 07 2017. 19:32 IST