Posted on December 21, 2012 by Akashma Online News

Russia’s Vnesheconom bank (VEB) will provide Indonesia a total of $399.5 million in credit to finance purchases of aircraft and related equipment from Russia’s state-run arms export company Rosoboron export.

Su-30MK2 Flanker Multirole Fighter

The credit will be provided for a seven-year term, Rosoborone xport said. This is the second credit agreement between VEB and Indonesia’s finance ministry in the past two years.

Earlier, VEB’s deputy chief Alexander Ivanov said the group won the Indonesian finance ministry’s tender to finance the purchase of six Russian-made Su-30MK2 Flanker multirole fighter aircraft.

The Sukhoi Su-30MKK (NATO codename: Flanker) is the two-seat, twin-engine multirole fighter aircraft developed from the Su-27 fighter. The aircraft was developed by Russian Sukhoi Design Bureau and built by KnAAPO in Komsomolsk-na-Amur. The PLA Air Force (PLAAF) acquired two batches totalling 76 Su-30MKKs between 2000 and 2003. The third batch, which consisted of 24 examples of the upgraded Su-30MKK2 variant, was delivered to the PLA Naval Air Force (PLANAF) in August 2004. The Su-30MKK series is the most capable combat aircraft in service with the PLA.

The Su-30MKK is PLA’s first ‘true’ multirole fighter with both ‘beyond-visual-range’ air-to-air and precision strike capabilities. The aircraft can deliver a range of precision-guided munitions such as the Kh-29 and Kh-59 air-to-surface missiles, Kh-31P anti-radiation missile, and the TV-guided bombs. For air-to-air combat, the aircraft is equipped with Russia’s latest Vympel R-77 (NATO codename: AA-12 Adder) active radar-homing medium-range air-to-air missile (MRAAM). Additionally, the aircraft is also fitted with sophisticated electronic countermeasures (ECM) and C4ISR suites for target acquisitions and weapon guidance.

Back in 2007  Indonesia  signed a $1 billion arms package to update its crumbling military. The agreement with Russia includes contracts for two submarines and contains an option to purchase up to eight more over the next 15 years. As Chad Bouchard reports from Jakarta, that plan is raising concerns among other Pacific nations.

Under the turbid waters of the Western Pacific, a quiet arms race is threatening to upset the fragile balance of power between nations.

Chine accused of fueling Pacific Arms Race – A dramatic increase in the number of submarines being built in southeast Asia has sparked claims that a new arms race is under way beneath the waves in the Western Pacific.

In Nov. 1946, a draft agreement on forming a Netherlands-Indonesian Union was reached, but differences in interpretation resulted in more fighting between Dutch and nationalist forces. Following a bitter war for independence, leaders on both sides agreed to terms of a union on Nov. 2, 1949. The transfer of sovereignty took place in Amsterdam on Dec. 27, 1949. In Feb. 1956, Indonesia abrogated the union and began seizing Dutch property in the islands.

In 1963, Netherlands New Guinea (the Dutch portion of the island of New Guinea) was transferred to Indonesia and renamed West Irian, which became Irian Jaya in 1973 and West Papua in 2000. Hatta and Sukarno, the cofathers of Indonesian independence, split over Sukarno’s concept of “guided democracy,” and under Sukarno’s rule the Indonesian Communist Party (PKI) steadily increased its influence.

Military analysts say Indonesia’s deal with Russia last week, which included two of Russia’s famously stealthy Kilo-class submarines, is the latest development in an ongoing underwater arms race across the region.

Andrew Davies is the author of The Enemy Below, a report published by the Australian Strategic Policy Institute think-tank.

He predicts increasing underwater traffic could lead to a serious international incident.

“When you have submarine operations, especially if people go and operate in other people’s sovereign waters, you have one little accident, you know a submarine bumps into a ship or something like that – and these things do happen; even US submarines bump into ships occasionally, you’re setting yourself up for a very significant diplomatic issue, especially if the two countries happen to not like one another,” he noted.

Japan has asked Indonesia to explain why it needs so much firepower under the sea.

The Indonesian government has announced that it wants to build 12 submarines by 2024 to patrol the strategically vital waters around its 17,000 islands. Singapore, Malaysia, Vietnam, Thailand, South Korea, Bangladesh and -Pakistan are all buying -submarines “off the shelf”.

There are at least three key determinants in Indonesia’s future rise. The first is the vision of Indonesia’s future president after 2014, whoever that may be, which will determine the next phase of Indonesia’s foreign policy. Secondly, domestic sentiments on certain issues are also important in terms of their impact on Indonesia’s foreign policy. Islamic nuances in foreign policy are already evident as a consequence of domestic pressures, for example concerns about the plight of the Rohingya community in Myanmar; advocating an anti-blasphemy law in the UN; and Foreign Minister Marty Natalegawa’s recent call for nations to review diplomatic ties with Israel and to boycott its products in solidarity with Palestine.

Indonesia, however, is confronted with a security dilemma given the current uncertainty in politics in the Asia-Pacific region; geopolitical turbulence in disputed waters; and the emergence of new sources of conflict involving resources.

Against this backdrop, Indonesia’s quest to improve its military capability, if realised, will influence the regional balance. In previous years, Indonesia was never able to meet its defence budget. In 2008 only 28 per cent of the overall budget was fulfilled by the government. Economic growth should help Indonesia to build up its military. Indonesia has recently passed a Defence Industry Law, demonstrating a political will to increase its military capability. But as the regional power balance shifts, it could potentially stimulate a reaction from Australia, Malaysia and Singapore, especially over border issues, such as the unresolved dispute over Ambalat with Malaysia.  The Nation