RI, RUSSIA FOSTERING COOPERATION

By Andi Abdussalam

Jakarta, Sept 5 (ANTARA) - The one-day visit of Russian President Vladimir Putin to Indonesia on Thursday will concretize cooperation in trade, mining and the military worth billions of dollars.

        "Indonesia and Russia have agreed to increase their bilateral trade cooperation to US$1 billion from US$680 million in 2006, presidential spokesman Dino Patti Djalal said at the Presidential Palace in Jakarta on Wednesday.

        Dino said that Russia's trade is worth US$730 billion annually, so that it has a vast development potential. Trade between the two countries has almost doubled during the last few years.

        This figure is quite encouraging. But today's trade volume worth US$680 million is unlikely to correspond to the capacity of both countries with a combined population close to 400 million.

        "A level of trade amounting to US$ 1 billion seems possible to reach over the next few years," President Vladimir Putin said in an article he wrote to ANTARA prior to his visit to this country.

        According to Dino Patti Djalal, both nations shared an interest in stepping up their ties following the robust economic growth in the two countries, respectively by six percent and 6.4 percent.

        The two countries have also agreed to cooperate in the oil and mining sectors. There will be a Memorandum of Understanding (MoU) between Indonesia's state-owned oil company Pertamina and its Russian counterpart Luk Oil Russia worth US$1 billion.

        During the Russian president's visit to reciprocate a visit made by President Yudhoyono to Moscow in December 2006, Indonesia's PT Aneka Tambang and Russian Aluminum (Russal) will also sign a cooperation agreement on a chemical grade alumina project in West Kalimantan valued at US$3 billion.

        The Russian president's visit is also expected to concretize military cooperation under which Indonesia will purchase 22 Russian helicopters, 20 tanks and two submarines worth US$1 billion.

        According to Dino, Russia is committed to providing Indonesia with a soft loan for the purchase of Russian-made military equipment.

        Indonesian Defense Ministry spokesman Brig. Gen. Edy Butar Butar said the under the purchases, payable in 15 years, the military will get 17 passenger helicopters and five combat helicopters, while the Navy will get two submarines and 20 amphibious tanks.

        "The Air Force will also receive arms and equipment for its Shukoi squadron, because on top of the $1 billion purchase, we will also buy six Shukoi jet fighters worth $335 million," Butar Butar told The Jakarta Post, referring to another agreement with Russia.

        Agreement was reached on the purchase of the military equipment following the signing by the two countries of a US$1 billion export loan agreement during President Yudhoyono's visit to Russia last year.

        Both countries agreed to cooperate in sports, youth affairs, technology and in some other sectors.

        "This is a sign that Indonesia-Russia ties are improving further, a sign of Indonesia's active foreign policy and a sign that Indonesia has been building friendship with anyone," Dino added.

        Indonesia and Russia share views on various international issues. Both countries are members of the United Nations Security Council, except that Indonesia is a non-permanent member.
<br>        Russia noted Jakarta's dynamic and independent foreign policy of playing a constructive role in world and regional affairs. The election of Indonesia as a non-permanent member of the UN Security Council for 2007 - 2008 testifies to the acknowledgement of its international prestige.

        "Due to the proximity of our positions on current issues Indonesian and Russian representatives are closely cooperating within the framework of the United Nations," Putin said in his article.

        Political dialog between Moscow and Jakarta has been developing steadily. The official visit of President Susilo Bambang Yudhoyono to Moscow late last year was a significant event with tangible results, confirming that Russian-Indonesian cooperation has a promising future, in the spirit of the 2003 Declaration on Principles of Friendly and Partnership Relations between the two countries in the 21st century.

        Increased inter-parliamentary relations and intensified cooperation between various ministries and other agencies show that both sides are interested in promoting their cooperation.

        "However, today we want to go beyond such gradual rapprochement. We are ready to open a new page in our relations with Indonesia. I think that there is a solid foundation for this, as well as time-tested experience and substantial pre-requisites to build on," President Putin said. (A014/B/HNG/B/E002) (T.A014/A/A014/B/E002) 06-09-2007 00:29:47