Friday 4 August 2017

Indonesia to barter agricultural commodities for Russian jet fighters


Indonesia to barter coffee, CPO for Russian jet fighters

Jakarta | Fri, August 4, 2017 | 09:15 pm

Indonesian state-owned trading company PT Perusahaan Perdagangan and Russian state-owned company Rostec have signed a memorandum of understanding to barter Indonesian agricultural commodities for Russian jet fighters.

“The barter deal, which is under the supervision of the two governments, will involve 11 Sukhoi SU-35 jet fighters and several commodities like coffee, palm oil, tea and others,” Trade Minister Enggartiasto “Enggar” Lukita said in a statement on Friday.

Enggar, who is on an official visit to Russia from Aug. 3 to 5, expressed his hope that the agreement would be followed by other agreements in other sectors.

Russia currently faces economic sanctions imposed by the United States and the European Union. In response, Russia has limited imports from the US and EU and is looking to other countries for commodity imports.

“It is an opportunity we have to seize. The great potential for economic cooperation during the embargo and counter embargo goes beyond trade and investment issues. We also have the opportunity to enhance cooperation in tourism, student exchange, energy, technology, aviation, etc.,” Enggar added.

Trade between Indonesia and Russia in 2016 amounted to US$2.11 billion – with Indonesia posting a surplus of $411 million – compared to $1.9 billion in 2015. Indonesian non-oil exports to Russia grew by 8.50 percent in the last five years to a value of $1.3 billion in 2016, while Indonesian exports from January to May this year grew by 54.43 percent to $1.12 billion. (bbn)


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