RUSSIAN President Vladimir Putin has forged $6 billion in military and energy deals with Indonesian counterpart Susilo Bambang Yudhoyono, in a key step towards reasserting Russian influence across the Asia-Pacific.
The deals to modernise Indonesia's military and co-operate in producing oil, gas and aluminium will feed concerns about looming regional power plays between the United States, China and Russia.
Mr Putin oversaw the signing of the deals in Jakarta yesterday on his way to Australia for the APEC forum. He will arrive in Sydney this morning, joining key regional leaders for talks that will cover regional security issues and a growing arms race.
Mr Putin and Dr Yudhoyono pledged stronger military ties, bolstered by a $1.2 billion acquisition of Russian weapons.
And under other deals signed yesterday, Russia plans to invest $1.2 billion in Indonesia's state oil and gas exploration firm and $3.6 billion in bauxite exploration and aluminium production.
Mr Putin is the first Russian leader to visit Indonesia. "We consider Indonesia as a key and promising partner of Russia in the Asia-Pacific region," he said.
Dr Yudhoyono said defence co-operation would be "continuously developed to modernise our military equipment in the army, navy and air force".
Indonesian Defence Minister Juwono Sudarsono said a $1.2 billion credit to buy Russian submarines, tanks and helicopters meant Indonesia had now established strategic partnerships with all major powers in the region — including Russia, Australia, China and the US.
Mr Sudarsono echoed the views of military analysts who say that, after a slumber imposed by the break-up of the Soviet Union, Russia is moving to reassert itself in the Asia-Pacific.
"They are a Pacific power and remember, 70 per cent of Russia is in Asia," Mr Sudarsono said.
Russia is attempting to counter the dominance of the US and rising influence of China across the region.
It has become the largest supplier of weapons to Asia and is aggressively promoting further sales with generous loan and credit schemes. The military deals are opening the door for closer ties and wide-ranging investments.
Indonesia's move to buy two advanced Kilo class submarines and other military hardware has already provoked a "please explain" from Japan and fears of further escalations in a regional arms race.
The Kilos will be the most advanced conventional submarines in South-East Asia, Defence Ministry spokesman Edy Butar Butar told The Age yesterday — and a serious theoretical threat to Australian surface ships. Indonesia has also announced the $400 million purchase of six Russian Sukhoi jet fighters.
Moscow is also expanding its military reach with plans to upgrade its Pacific Fleet, revamping the submarine base at Kamchatka, in Russia's far east, and deploying more jet fighters to the east.
Russia's "muscling up" was underlined by Mr Putin ordering the resumption of long range patrols by nuclear capable bombers last month.
A strategic analyst at Perth's Curtin University, Alexey Muraviev, recently told The New York Times that Asian arms sales demonstrated Russia's aims again to become a "formidable Pacific player".
"The West and the Pacific community must come to terms with the fact that Russia is back," said Dr Muraviev.
"Its military might is on the rise."
"The Age"
