Russian Defense Industry Loses Hundreds of Millions
The tsunami of 2004 was not only a
terrible human disaster for the archipelago nation of Indonesia,
but is shaping up to be a financial one as well. One of the
repercussions from the tidal wave is being felt all the way to
snowy Russia: the Indonesians, who were on the brink of buying more
Russian fighter jets and helicopters, have quietly pulled the plug
on the order, leaving the Russians disappointed and scrambling for
customers, according to Russian media and Reuters reports.
Over the last 40 years the Indonesians have used both Russian
and American war materiel; the Air Force currently is flying
US-made Douglas A-4 Skyhawk aircraft from the 1960s, which are
overdue for replacement. The Northrop F-5 Tiger IIs from the 1970s
are looking pretty long in the tooth, too; and even the newer F-16s
have issues with spare parts. While most of its major weapons
systems are US-made, Indonesia is under a US embargo, thanks to US
disapproval of Indonesian suppression of East Timorese separatists.
Even if the embargo was lifted, any arms supplied by the US would
probably have strings attached limiting their utility against other
separatist movements --which is the primary reason the Indonesians,
beset by several such movements, want modern weapons. One
Indonesian politician's response to the US embargo, in mid-December
before the tidal wave brought American aid en masse, was succinct:
"Go to Hell with your aid!"
With US machinery out of the running, Russian Sukhois were
chosen: Su-27MKs and Su-30 MKs. These are very advanced (and
expensive) warplanes. How expensive? After the first buy in
2003-2004, this Indonesian buy was going to be six airframes, plus
spares and support, for a paltry $890 million.
With the helicopters and other odds and ends, the total buy was
as high as $1.5 billion, but the tsunami changed that. The money
that had been earmarked for capital improvements in the military
has been diverted to disaster relief. Reuters quoted a Russian
official as saying, "It’s all about the tsunami ... It has
already affected Indonesia’s previously announced plans to
buy Sukhoi planes and combat helicopters."
Russia had been counting on this sale after Thailand turned down
Russian fighters and bought SAAB Gripens last year. Arms are a
major Russian export and combat aircraft are by far the majority of
Russian arms exports. But Indonesia can't be concerned about
Russia's plight at this hour, and right now in Indonesia, an air
defense capability is the least important national requirement,
with hundreds of foreign aircraft in Indonesian airspace on relief
operations -- with the blessing of the Indonesian government and
people.