Competition & Key Events
“Three years ago we began developing the new generation of 767 MMTT. We are expecting the supply of this type of aircraft to certain European air forces in the coming months….”
“A [Indonesian] senior government official said Taufik Kiemas, the speaker of the Indonesian People’s Consultative Assembly, told [South Korean] Prime Minister Kim Hwang-sik on Wednesday morning that Daewoo is virtually certain to get the nod for the [US$1.08 billion submarine] project. “There still are some more processes to follow, but the deal will be struck, unless something comes up,” the official said.”
“We will choose a country that can provide us with a product at a competitive price and offers better transfer of technology options,” he said. “The tender process will be open using a credit export financing scheme.” Each submarine is estimated to cost around Rp 3.5 trillion (US$371.85 million).”
“Three more companies from Russia, Germany and France competed for the deal. But sources said the Indonesian Navy demanded unacceptable terms so Daewoo and the German and French firms dropped out. Only the Russian firm remained, forcing Indonesia to instigate a second round of bidding…. Russia is considered its major competitor, since it is backed by well-established political ties with Indonesia and an offer of a $1-billion loan. In another negative sign, the incumbent Indonesian defense minister is said to be pro-Russian.
“There’s always been a plan to purchase submarines and I’ve surveyed a few submarine workshops in Moscow, Russia. This submarine will display our naval strength and allow us to be ready for any armed conflicts…. It’s not necessary to own many submarines since they are expensive, just three state of the art units will suffice to safeguard the integrity of our waters,” Ihza said…. My colleagues and I at the House have fought for an increase in defense spending, yet unfortunately this isn’t possible now….”