Indonesia Signs a Contract to Acquire the Rafale Aircraft from Dassault Aviation

13 Juni 2021

Dassault Rafale fighter (photo : The Federal News)

According to local sources, the initial contract for the purchase by Indonesia of 36 new Rafale was signed on June 7 during a visit by Florence Parly prepared in the greatest secrecy. This contract would take effect next December because several details are still to be settled. Article 43 of the law on the defense industry, adopted in 2012 (“Undang Nomor 16 Tahun 2012 tentang INDUSTRI PERTAHANAN”) imposes the IDKLO rules (countertrade, local content and offset), namely in particular the calculation of a compensation, and the integration of local components into any foreign product acquired to meet the needs of the security and defense forces.

Secret negotiations

During his visit to Paris last October, Indonesian Defense Minister Prabowo Subianto clearly indicated to his French counterparts his government's interest in the Rafale. Last February, a Dassault delegation visited Indonesia to examine the terms of the transaction with the defense ministry. The press then mentioned the purchase of 48 Rafale. According to some information, the Indonesian leaders have decided to buy "only" 36 Rafale, to complete them F-15 EXs by 2024 as compensation so as not to upset the Pentagon. The financial package would be similar to that proposed to Egypt, namely a loan guaranteed for 80% of the total amount of the contract. Last week, all the industrialists of the "Rafale Team" still held their breath. Indeed, while the technical and financial offer had been handed over to the Indonesian government, the United States Embassy had just launched an unprecedented lobbying offensive to block the decision of Jakarta. And this in order to allow Lockheed to make an economically more attractive offer in favor of its F-16 block 72. However, as long as the first deposit is not paid, Washington, already in difficulty on the contract for the acquisition of future Swiss combat aircraft, will not miss any opportunity to regain the initiative.

Modernization of the Indonesian army

A presidential directive published in 2008 decreed a reform of the Indonesian armed forces over the next 15 years. This modernization involves a renewal of equipment, not only for the navy but also for the air force, and involves orders of military equipment abroad. Like the H225M helicopters from Airbus and the Bell 412 EPI, but also modern fighter jets. Among the aircraft competing against the Rafale were therefore the F-16 block 72, the Russian Su-35, and the South Korean KF-X. The Indonesian authorities wanted to acquire the F-35, but would have encountered the refusal of the American authorities.

(Air Cosmos)