australia to loan indonesia 5 billion dollars, page-25

From The Sydney Morning Herald 5 Sept 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.

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Where is the need for Australia to offer Indonesia $1 billion, if the Indons are alraeady on such good terms with Moscow? That money is needed right here in Australia. Charity begins at home.
Russia, Iran and Indonesia are forming an unhealthy allaince. Its only a pathetic attempt by weak feeble Rudd and his government to appease Jakarta in the guise of assisting a "poor" country in times of economic trouble.