Report: Indonesia to buy 2 subs + 4 destroyers in next 10yrs
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Xinhua News Agency - China
Indonesia to buy two submarines within next 10 years
www.chinaview.cn 2003-09-19 12:11:40
JAKARTA, Sept. 19 (Xinhuanet) -- The Indonesian government is planning to purchase two submarines within the next 10 years as part of a 1.95 billion US dollars defense project for the country's impoverished Navy, a defense official said.
Director General for Defense Strength in the Ministry of Defense, Rear Marshal Lambertus Siloy said that each submarine would cost about 220 million US dollars.
"The first submarine will be purchased in 2005 and the second in 2009," Siloy was quoted Friday by The Jakarta Post newspaper as saying.
Currently, the Navy has only 117 ships, including two submarines and 44 warships.
Siloy revealed that the Navy would also purchase four guided-missile destroyers at a cost of about 145 million US dollars each.The warships would be purchased within the next 10 years.
"Each warship will cost 75 million US dollars," he said, adding that the Navy would also purchase French-made Exocet missiles at acost of 140 million US dollars.
Siloy, however, did not reveal from where the country would purchase the military equipment.
Indonesia's traditional arms suppliers, notably the United States and its ally Britain, have imposed a military embargo on the sale of new military equipment and spare parts to the country due to its failure to stop a bloody rampage by pro-Jakarta militias in East Timor in 1999.
Indonesia recently took delivery of two Sukhoi-27 and two Sukhoi-30 warplanes, as well as two Mi-35 assault helicopters it bought under a 192.6-million US dollars counter trade deal signed with Russia in April this year. -
The Jakarta Post - Indonesia
Navy to buy two submarines
The Jakarta Post, Jakarta
The government is planning to purchase two submarines within the next ten years as part of a US$1.95-billion defense project for the country's impoverished Navy, an official says.
Director General for Defense Strength in the Ministry of Defense Rear Marshal Lambertus Siloy told House of Representatives Commission I for defense that each submarine would cost about US$220 million.
"The first submarine will be purchased in 2005 and the second in 2009," Siloy said.
Currently, Indonesia's Navy has only 117 ships, including two submarines and 44 warships.
Lambertus revealed that the Navy would also purchase four guided-missile destroyers at a cost of about $145 million each. The warships would be purchased in 2006, 2008, 2010 and 2013.
The Navy will also purchase two minesweepers in 2007 and 2011.
"Each warship will cost $75 million," he said, adding that the Navy would also purchase French-made Exocet missiles at a cost of $140 million.
Siloy, however, did not reveal from where the country would purchase the military equipment.
Indonesia's traditional arms suppliers, notably the U.S. and its ally the UK, have imposed a military embargo on the sale of new military equipment and spare parts to the country due to its failure to stop a bloody rampage by pro-Jakarta militias in East Timor in 1999.
The embargo, which has forced the Indonesian Military (TNI) to ground many of its warplanes and warships, prompted the country to turn to Russia for new military equipment.
Indonesia recently took delivery of two Sukhoi-27 and two Sukhoi-30 warplanes, as well as two Mi-35 assault helicopters it bought under a $192.6-million countertrade deal signed with Russia in April this year.
Defense ministry director for defense system planning Rear Marshal Mas Wijaya, meanwhile, said the condition of the Navy's defense equipment had been deteriorating in recent years.
"We are now repairing the submarine KRI Cakra under an export credit facility from Korea," Wijaya told the hearing.
Meanwhile, Secretary General of the defense ministry Rear Marshal Suprihadi said most of TNI's military equipment was between 20 years old and 40 years old.
Therefore, he said, TNI had allocated Rp 3.6 trillion ($423 million) in the 2004 budget for the purchase of military spare parts and equipment.
Legislators RK Sembiring Meliala and A.M. Luthfi, respectively from the Indonesian Democratic Party of Struggle (PDI Perjuangan) and Reform factions, said that the poor state of the Navy was not a new story.
"We knew it and we know one submarine costs that much money. That's why we can only repair old submarines," Sembiring told The Jakarta Post.
During the hearing, the ministry's secretariat and the House defense commission agreed to separate the military's routine budget from its development budget.
The routine budget consists of state expenditure for the salaries of personnel, while the development budget is used, among others things, to purchase military equipment.
The move was taken to avoid creating the impression that defense expenditure was too high.
Navy Fleet
- 2 submarines
- 14 warships
- 57 patrol boats
- 44 support vessels -
Sometimes, reading economic magazines can help spot potential arms purchases from our neighbours. Thailand exports rice and rubber. Malaysia is palm-oil. Indonesia is oil.
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Testing their metal
Sep 16th 2003
From The Economist Global Agenda
Commodity prices have been shooting up.
THE price of steel in Japan is rising. By way of example, H beams, which are the standard unit used in construction, have risen from under ¥30,000 per tonne to about ¥45,000 per tonne over the past four years, according to Jonathan Allum of KBC Financial Products. Scrap prices are going up, too. For a country plagued for so long by deflation, this seems odd, not least because it has been going on for some while: the price of sophisticated manufactured goods continues to fall in Japan, points out Mr Allum, even as the prices of industrial commodities rise.
It is a trend that is not restricted to Japan. For all the mutterings about disinflation and deflation (a word that seems to be said only sotto voce, perhaps out of embarrassment now that growth is picking up almost everywhere), commodity prices have been rising at a fair lick. Is this rise the harbinger of higher inflationary pressures, as in times past? Or, put another way, could steel-traders be forgiven for thinking that Alan Greenspan and his colleagues at the Federal Reserve have fretted unduly about deflation? For his part, Buttonwood does not see the rise in commodity prices fuelling inflation, but it does say something interesting about the shift in global economic growth.
The EconomistÂ’s commodity-price index, first published in 1864, which makes it the worldÂ’s oldest, has been sprightly of late. The index as a whole has risen by 6% over the past 12 months in dollar terms, but it is the prices of industrial commodities that catch the eye. They have risen by 17% over the same period, and non-food agricultural products have gone up by 21%. Our metals index touched a bottom of 62.2 in October 2001; it now trades at a healthy 76. Though aluminium prices have crawled up by a modest 5% over the past year, platinum has gone up by 26%, copper by 17% and nickel by a scarcely deflationary 40%.
The sharp rise in commodity prices has been driven partly by dollar weakness. Most commodity prices are denominated in dollars, and many of the worldÂ’s producers have currencies that have risen against the greenback, sometimes by a lot. The rise in the dollar price reflects, among other things, an attempt to claw back some of the increased cost of selling in that currency. In other currencies, the overall index has risen less; in euros, a currency which has risen, the index has fallen.
But the interesting thing is that producers have managed to pass on these increased costs in dollars. Demand, in other words, is sufficiently robust. For that, thank in part hedge funds and the like, which have piled into the market on the bet that prices will rise as global growth picks up and manufacturers restock. What makes the bet more compelling is that world growth has been shifting to Asian countries, which have been growing much faster than developed countries. China and India, for instance, have been growing by around 7-8% and 5-6% respectively for many years. They are also relatively intense users of commodities. At the beginning of the 1990s, China accounted for 7-8% of the worldÂ’s metals consumption. Now, says Paul McTaggart, an analyst at Morgan Stanley, it makes up perhaps a fifth. And Chinese demand is growing by around 10% a year. The effects of swings in that demand on commodity prices are thus greater than they were.
And, to return to those Japanese H beams, this is particularly true of steel. In 1990, China consumed 60-70m tonnes of steel. Now it uses some 250m tonnes a year (around one-sixth of which it imports), out of global consumption of perhaps 930m tonnes. By 2010, it may be consuming 350m tonnes. “You want to be selling the Chinese something they haven’t got,” says Mr McTaggart. That something is not just steel (Japan has some very expensive blast furnaces; China has few and would rather spend the money on something else), but industrial commodities in general. Perhaps counter-intuitively for a country of its size, China is rather short of these; and even when it has them, the infrastructure is decidedly problematic. It takes about as long to get a container from Long Beach, California, to Shanghai as it does to get one from Shanghai to Chongqing, a thousand miles or so up the Yangzi river. Worried about its dependence on foreign producers, the Chinese government is now offering incentives to find and produce commodities. It will, one suspects, be many years before any of this makes a difference. “That’s what’s got people interested in commodities,” says Mr McTaggart, and you can see their point.
And the inflationary impact of all of this? Almost nil. Any economist worth his salt will tell you that inflation is a movement in the overall level of prices. And at this level, China works if anything in the other direction, because thanks to its low-cost labour force it can pump out goods of all kinds a lot more cheaply than just about anyone else (intriguingly, it even has the market for sex aids sewn up). But the rise of commodity prices does say a lot about the extent to which growth has moved east. America gripes about China and its unfair competition; Japan, which runs a trade surplus with the Middle Kingdom, exports its H beams. -
the two subs they gonna get likely to be from south korea. wonder which type.
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Probably the Type 209 that was licensed built by Daewoo Shipbuilding.Originally posted by foga:the two subs they gonna get likely to be from south korea. wonder which type.
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They are already operating 2 ex german Type 209s. They gonna increase their numbers?
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type 209 hmm... heard india offered theirs to taiwan whom incidently were also operating 209 but the taiwanese rejected. But dun think indonesia will buy from india, rumoured that india regularly encroaches into indonesia from their carrier.Originally posted by eurofighter:They are already operating 2 ex german Type 209s. They gonna increase their numbers?
Mebbe dats why indonesia still want 4 more destroyers. Mebbe dey really have problems integrating their 39 east german boats.