Subject: RI to Slash U.S. Weaponry to Prevent Embargo

also: Eurocopter and PT. Dirgantara Indonesia sign Teaming Framework Agreement during Indodefence 2006

Xinhua November 27, 2006

Indonesia to slash quantity of U.S. weaponry in military to prevent embargo

Indonesia will trim down the proportion of the U.S.-made military weaponry and equipment in its military to lessen the dependency on the U.S. military industry, the defense minister said in Jakarta on Monday.

Talking to reporters at the parliament building, Minister Juwono Sudarsono said that Indonesia will continue to cut the percentage of the U.S. products from 65 percent now to a figure below 50 percent.

In 1998, the figure was 80 percent, he said.

The minister said Indonesia will diversify the source of its weaponry and equipment to other countries.

"We reduce (the proportion of the U.S. products) by extending the choice that we have already had," he said after a meeting with the lawmakers at the parliament building.

The minister added should a country control the majority of the weapon supply of another country, it might have a power to impose a ban by seeking the reason of the violation of human rights.

"We are now seeking the possibility on scores of countries, we will see their offers," he said.

The United States imposed a ban on the Indonesian military from purchasing spare parts for the Indonesian fighter planes on concerns of the gross human rights violation before and after the United Nations-backed referendum in 1998 in East Timor. The ban was lifted in 2004 followed by the resumption of full military ties of both countries.

The embargo had made scores of Indonesian fighter planes not able to operate.

One of the countries being sought to be another supplier of the weaponry and equipment is India, which has an advanced aircraft industry and economy, said the minister.

India "has offered products in many sectors, including in electronic, aircraft, and helicopters and guided-missiles," he said.

Indonesia has agreed to spend 1 billion U.S. dollars purchasing weaponry from Russia and reached agreement with Czech to boost defense cooperation.

Chairman of the Commission One in charge of foreign policies of the parliament L. Theo Sambuaga also said that the House supports and encourages the government decision not to rely only on one country and to find out other sources of the arms supply.

"We always push the government to diversify the source of the weaponry," he said at the parliament building.


Helicopter Association International Alexandria, VA ŹNovember 27, 2006

Eurocopter and PT. Dirgantara Indonesia sign Teaming Framework Agreement during Indodefence 2006

Today, executive representatives of Indonesiaís aeronautic company PT. Dirgantara Indonesia (PTDI) and Eurocopter, world leader in civil and parapublic helicopters, signed a Teaming Framework Agreement at Indodefence exhibition in Jakarta, Indonesia. The future cooperation is planned to go beyond industrial processes and to comprise the joint marketing of the whole Eurocopter range to any kind of governmental entities in Indonesia.

Philippe Harache, Executive Vice President of Eurocopterís Customer Department, together with Mr. M. Mochajan, Acting President Director PT. Dirgantara Indonesia said after the signature ceremony: "The trustful cooperation between PTDI and Eurocopter goes back more than three decades. Apart from its industrial assets, PTDI offers us a strong network in the Indonesian market, a well-established infrastructure and close insight into market developments". "By means of the new teaming framework agreement, PTDI profits from our undisputedly leading product portfolio and optimal use of existing service and production facilities, laying the path for successful growth with Eurocopter", Harache added.

Both partners intend to use synergies to succeed in upcoming procurement programmes such as the Police tender for mid- size helicopters, new Army Aviation Training and transport helicopters, Navy Anti Submarine Warfare as well as Combat Search and Rescue helicopters.

The scheme of industrial relations will be defined in accordance with the Indonesian government. Consequently, following the volume of helicopters procured by the Indonesian government, the percentage of local contents in PT. Dirgantara Indonesia will evolve.

About Eurocopter

Eurocopter, founded in 1992, today is a French-German- Spanish group and a business division of EADS, a leading corporation in the field of aeronautics, defence and associated services. Eurocopter employs around 13,500 people worldwide and offers the biggest product range of civil and military helicopters. In 2005, Eurocopter strengthened its position as the leading helicopter manufacturer, showing a 3.2 billion Euro turnover, an order book of 401 new helicopters, counting for 52 percent of the worldwide civil and para-public market. In total, Eurocopter counts for 30 percent of the worldwide fleet of helicopters in service. With 16 affiliates and subsidiaries on five continents and a strong network of service and maintenance centres, Eurocopter ensures its strong worldwide presence. Currently, more than 9,500 Eurocopter helicopters are in service with 2,500 customers in 139 countries.

------------------------------------------ Joyo Indonesia News Service

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