DJ Blns In Trade Deals Expected During Putin's Indonesia Visit
JAKARTA (AP)--Russia and Indonesia are expected to sign billions of dollars worth of weapons, mining and oil deals during Russian President Vladimir Putin's first visit to the country this week, a presidential spokesman said Tuesday.
Russia will grant Indonesia a US$1 billion credit line to buy Russian military hardware, said spokesman Dino Pati Djalal, without providing details.
Indonesian mining company Aneka Tambang (ANTM.JK) will sign a US$3 billion deal with Russian aluminum giant United Company Rusal, while state-owned oil company Pertamina plans to sign a US$1 billion agreement with Russia's LukOil (LKOH.RS), he said.
Putin will meet with Indonesia President Susilo Bambang Yudhoyono on Thursday during a one-day stop over on his way to the Asia-Pacific Economic Cooperation forum in Australia.
The Russian investment will bring a much-needed boost to foreign capital inflow and help revamp Indonesia's aging mining and oil facilities. It comes just weeks after South Korea announced it signed US$8.5 billion in trade and investment deals with Jakarta.
Indonesia has been looking for other sources of arms since the United States - formerly its largest supplier of weaponry - cut military ties in 1999 over human rights concerns. The ban was lifted in 2005, but Jakarta continues to look elsewhere for military hardware.
Indonesia is a major arms-buying client for Russia and has spent hundreds of millions of dollars on fighter jets.
(END) Dow Jones Newswires
September 04, 2007 07:29 ET (11:29 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.- - 07 29 AM EDT 09-04-07 Received on Tue Sep 04 2007 - 22:03:45 EDT
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