Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Indonesia's planned purchase of F-15 jets in final stages, defence minister

Published 11/21/2022, 01:13 AM
Updated 11/21/2022, 02:21 AM
© Reuters. Indonesia's Defense Minister Prabowo Subianto and U.S. Defense Secretary Lloyd Austin hold a joint news conference, following their meeting in Jakarta, Indonesia, November 21, 2022. REUTERS/Willy Kurniawan/Pool

By Kate Lamb and Ananda Teresia

JAKARTA (Reuters) - Indonesia's planned purchase of F-15 fighter jets is in advanced stages and awaiting final sign-off from the government, the Southeast Asian country's defence minister said on Monday.

Speaking after meeting his U.S. counterpart Lloyd Austin in Jakarta, Prabowo Subianto said that Boeing (NYSE:BA) had agreed to the financial offer proposed and he was confident the package was affordable.

"The decision now is with the Indonesian government... Negotiations have advanced very well," he said.

In February, the U.S. State Department approved the potential sale of Boeing F-15ID aircraft and related equipment to Indonesia in a deal valued at up to $13.9 billion, the Pentagon said.

Indonesia has been seeking to overhaul its ageing air fleet for some time, which currently includes U.S.-made F-16 and Russian Sukhoi Su-27 and Su-30 jets.

"We certainly support the minister's efforts to continue to modernise their defence systems and capabilities and we want to continue to be helpful in any way we can," U.S. Defense Secretary Austin said.

"The acquisition of the F15 certainly increases interoperability," he added.

Addressing tensions between major powers in the Indo-Pacific region, Prabowo, an ex-special forces general, said Indonesia was committed to its policy of non-alignment and was "honoured" to maintain good relations with both China and the United States.

Prabowo met with his Chinese counterpart Defence Minister Wei Fenghe in the city of Xi'an last Friday, where it was agreed that Indonesia and China would resume joint military training exercises and education, which had been paused during the COVID-19 pandemic.

Earlier this year, Indonesia and the United States also participated in the Super Garuda Shield exercise, a military partnership between the countries that is now one of the biggest joint, multinational exercises in the region.

Monday's meeting between Austin and Prabowo comes as the U.S. works to strengthen its relations with countries in the region amid fears over Beijing's growing military presence, and possible conflict over Taiwan.

© Reuters. Indonesia's Defense Minister Prabowo Subianto and U.S. Defense Secretary Lloyd Austin hold a joint news conference, following their meeting in Jakarta, Indonesia, November 21, 2022. REUTERS/Willy Kurniawan/Pool

U.S. Vice President Kamala Harris met Philippine President Ferdinand Marcos in Manila on Monday, part of a three-day trip that has been billed as a chance to reset security ties.

After his Jakarta leg, Austin will travel to Cambodia to attend an Association of Southeast Asian Nations (ASEAN) defence ministerial meeting.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.