Indonesia signs $1.1 billion deal with Russia to buy 11 jets

Indonesia is all set to but 11 Sukhoi Su-35 jets from Russia in a billion-dollar deal. The contract was signed by both the countries in Jakarta this Wednesday.

The deal worths close to a whopping $1.14 billion. Two units of Sukhoi jets will be delivered in August 2018, six others will be delivered 18 months after the contract comes into effect while the remaining three will follow five months later. The mode of payment has not been announced.

Indonesia and Russia signed a memorandum of understanding to exchange 11 Russian-made Sukhoi fighters for key commodities in Moscow early August.

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In August 2017 Indonesia expressed its desire to engage in trade activities involving palm oil, coffee and tea for Russian fighter jets with Russia. The country noted that it wanted to capitalise on international sanctions on Moscow.

Putin-led Russia faces EU and US sanctions for alleged meddling in the US presidential election and the annexation of Crimea.

The Indonesian government identifies Russia's requirement to seek new import markets.

(With inputs from agencies)