Indonesia, Russia Bolster Military Ties

Russian President Vladimir Putin, left, inspects honor guards prior to his meeting with his Indonesian counterpart Susilo Bambang Yudhoyono at Merdeka Palace in Jakarta, Indonesia, Thursday, Sept. 6, 2007. Russia's military clout in Asia was set for a boost Thursday when Putin witnesses the signing of a US$1 billion defense deal that will help Indonesia purchase dozens of helicopters, tanks and submarines. (AP Photo/Achmad Ibrahim) (Achmad Ibrahim - AP)

JAKARTA, Indonesia -- Russia signed a $1 billion deal with Indonesia on Thursday to provide the world's most populous Muslim nation with assault helicopters, amphibious tanks and advanced submarines _ expanding Moscow's military clout in Asia.

The two nations also signed energy and mining agreements worth up to $8 billion and sent a pointed message to the United States: They oppose Washington on many key international issues, from the war in Iraq to the crisis in the Middle East.

President Vladimir Putin, the first Russian _ or Soviet _leader to visit Indonesia in nearly five decades, wants to reclaim some of the military and economic muscle Moscow had in Asia before the collapse of the Soviet Union in 1991.

Though its most lucrative ties are with China and India, Russia is moving into developing markets and hopes to surpass the U.S. as the world's largest arms dealer. Russia's arms exports reached a record $6.5 billion last year.

Putin oversaw the signing of the $1 billion loan Thursday to Indonesia's cash-strapped government for the purchase of military hardware, to be paid back over the next 15 years.

Defense Minister Juwono Sudarsono, who will buy 20 tanks, two submarines, 10 transport helicopters and five assault helicopters, said he was happy to be able to "reduce dependence on the United States," once the country's largest supplier of weaponry. Too often, he said, Washington links military aid to human rights issues.

Putin's visit comes amid chilling U.S.-Russia relations.

The U.S. has criticized Russia's democracy record and Moscow reacted harshly to U.S. plans for a missile defense system in Eastern Europe. It also believes Washington exerts too much influence over global affairs and needs a counterbalance.

Putin has shrugged off U.S. and Israeli complaints about advanced weapons contracts with Iran and Syria.

He said he was especially eager to strengthen ties with Indonesia, which has 235 million people, 90 percent of whom are Muslim, promising to also increase cooperation in telecommunications, aviation and technology.

"The approach of Russia and Indonesia to global and international issues are very much alike," said Putin, who spent a day in Jakarta on his way to the Asia Pacific Economic Cooperation summit in Australia.

For Indonesia, the timing of the Russian leader's visit, the first since Nikita Khrushchev came in 1960, could not be better.

Yudhoyono is seen as a close ally in Washington's war on terror, rounding up hundreds of al-Qaida-linked militants since attacks on Bali island killed 202 people. But the retired general has had to play a delicate balancing act to avoid angering Muslims at home, where popular sentiment against Americans is growing.

The country has been looking for other sources of arms since Washington cut military ties over human rights concerns in 1999, when Indonesian troops and their militia supporters killed more than 1,000 people in the breakaway province of East Timor.

The ban was lifted in 2005, but Jakarta continues to seek cheaper alternatives. It has spent hundreds of millions of dollars in recent years on Russian fighter jets and submarines and has also looked to South Korea.

Mines and Energy Minister Purnomo Yusgiantoro said the commercial investments announced Thursday total about $8 billion, half of which is dependent on oil and mineral deposits.

Indonesian mining company Aneka Tambang inked a deal with Russian aluminum giant United Company Rusal, while state-owned oil company Pertamina signed an agreement with one of Russia's biggest oil companies, Lukoil, he said.

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Associated Press writers Anthony Deutsch and Zakki Hakim contributed to this report.