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Indonesia, Russia Sign MoU to Trade Palm, Coffee for Jet Fighters

Indonesia, Russia Sign MoU to Trade Palm, Coffee for Jet Fighters
Antara/MN Kanwa

Indonesian state trading company PT Perusahaan Perdagangan Indonesia and Russian state conglomerate Rostec have signed a preliminary deal to trade Sukhoi SU-35 jets for commodities like palm oil and coffee, the Indonesian trade ministry said.

“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.

"The idea was proposed last year and some people suggested Indonesia should trade the jets with our main commodities," Indonesia's trade ministry spokesman Marolop Nainggolan told news agency AFP.

President of Indonesia Joko Widodo on Sukhoi Su-27/30 cockpit in Riau Islands, 2016. Image: REUTERS/Beawiharta
President of Indonesia Joko Widodo on Sukhoi Su-27/30 cockpit in Riau Islands, 2016. Image: REUTERS/Beawiharta

 

Today, Indonesia's palm exports in Russia are ranked second. "Since the reign of President Sukarno (1945-1967), Indonesia is the largest exporter of palm oil in Russia," Minister Enggar told TEMPO. "Indonesia ensures sustainability, health, and hygiene of palm oil products." 

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

Trade Minister Enggartiasto Lukito and Indonesian Ambassador to Russia Wahid Supriyadi, (third and fourth from the right) in the Business Forum Indonesia-Russia on Palm Oil event in Moscow on Thursday, August 3, 2017. Image: Special / TEMPO
Trade Minister Enggartiasto Lukito and Indonesian Ambassador to Russia Wahid Supriyadi, (third and fourth from the right) in the Business Forum Indonesia-Russia on Palm Oil event in Moscow on Thursday, August 3, 2017. Image: Special / TEMPO

 

“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 as quoted by Reuters.

Indah Gilang Pusparani

Indah is a researcher at Badan Perencanaan Pembangunan Penelitian dan Pengembangan Daerah Kota Cirebon (Regional Development Planning and Research Agency of Cirebon Municipality). She covers More international relations, tourism, and startups in Southeast Asia region and beyond. Indah graduated from MSc Development Administration and Planning from University College London, United Kingdom in 2015. She finished bachelor degree from International Relations from University of Indonesia in 2014, with two exchange programs in Political Science at National University of Singapore and New Media in Journalism at Ball State University, USA. She was awarded Diplomacy Award at Harvard World Model United Nations and named as Indonesian Gifted Researcher by Australian National University. She is Researcher at Regional Planning Board in Cirebon, West Java. She previously worked as Editor in Bening Communication, the Commonwealth Parliament Association UK, and diplomacy consulting firm Best Delegate LLC in USA. Less
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