Indonesia will exchange Coffee, Tea and Palm Oil for 11 Russian Sukhoi fighter jets.
After yet another round of US and European sanctions, Russia is in desperate need of trading partners. And while European consumption of Indonesian palm oil is on the decline, there was a mutual need for Indonesia and Russia to come together.
Full details of the value and quantity of Indonesian commodities to be traded has not been revealed.
All we know so far is that Russia wants Indonesian tea, coffee and palm oil. So much so they’ll swap the goods for 11 fighter jets.
Russian state-run corporation Rostec signed a memorandum of understanding for the deal with Indonesian state trading company PT Perusahaan Perdagangan Indonesia. Rostec says it is committed to implementing the terms of a counter trade program to counteract US-led sanctions.
The Sukhoi Su-35 Indonesia can expect is a long-range ‘4++ generation’ super-maneuverable fighter jet.
It is armed with an internal 30mm cannon and has 12 hard points with a combined capacity of 8,000kg, compatible with a wide range of unguided and guided missiles and bombs. Its maximum speed is 2,500 km/h, with a range of 3,400km, and a combat radius of around 1,600km.
Indonesia already has 16 Sukhoi fighter jets, coincidently bought when Indonesia was ostracised from the international trading community. They were purchased from Russia in 2003 when the US and EU subjected Indonesia to an arms sales embargo after actions taken in East Timor in 1999.
Indonesia, which had a $411 million trade surplus with Russia in 2016, aims to expand its partnership in tourism, education, energy, technology and aviation among others.
With the world turning its back on one of the largest economies in the world, Russia is a trade partner eager for someone to trade with. Considering Indonesia is the largest producer of palm oil, and its declining use amongst European countries, this memorandum comes at a good time for both.
Trade Ministry spokesman Marolop Nainggolan said, “This is an opportunity that should not be lost from our grasp,”