Jitters as Indonesia buys Russian subs

Mark Forbes Herald Correspondent in Jakarta

September 5, 2007

INDONESIA will finalise a $1.2 billion deal with the Russian President, Vladimir Putin, in Jakarta tomorrow, to fund the purchase of Russian submarines, tanks and helicopters.

The acquisition of two high-performance Kilo-class submarines has significant strategic implications for Australia and could erode its naval dominance in the region, military experts believe.

An Indonesian Navy spokesman, Sugeng Darmawan, told the Herald long-term plans to buy another eight of the new submarines were already being discussed.

Tomorrow's agreement will deepen military links between Russia and Indonesia as well as upgrading Indonesia's army, navy and air force. It will reduce Indonesia's dependence on US military supplies.

Under the deal, Russia will provide a $1.2 billion line of credit to finance the military purchases. Indonesia will acquire two of the most advanced conventional submarines built by Russia, 22 helicopters and 20 tanks.

The move will fuel rising concerns about an accelerating regional arms race, with China, Japan and Australia - among others - involved in big military acquisitions. Asia-Pacific Economic Co-operation forum leaders will this weekend discuss concerns about the regional build-up.

The head of the Australian National University's Strategic and Defence Studies Centre, Hugh White, said the submarine purchase would "significantly complicate" Australia's naval planning as they would represent a real threat to surface warships.

"These are Russia's highest quality conventional boats; they would significantly increase Indonesia's capability," he said. "It is most strategically significant for Australia; if there was any conflict with Indonesia these submarines would massively complicate the use of Australian surface ships."

The continuing pattern of big arms purchases in the region was eroding Australia's air and naval advantage, despite the $10 billion acquisition of air warfare destroyers, he said.

Australian defence planning has the destroyers as essential to protecting military forces deployed offshore.

First Admiral Darmawan said Indonesia's navy was proposing a fleet of 10 submarines and 260 surface ships in the longer term.

Mr Putin and the Indonesian President, Susilo Bambang Yudhoyono, would witness the signing of the deal tomorrow, the Indonesian Defence Ministry spokesman, Edy Butar Butar, said.

It is the first visit of a Russian leader to Indonesia and the pair will hold wide-ranging talks before travelling to Sydney for the APEC summit. Stronger trade, as well as military ties, will be endorsed.

Brigadier-General Butar said the deal would reduce Indonesia's military dependence on the US.