From BBC News
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Mr Putin also held talks with his Indonesian counterpart Susilo Bambang Yudhoyono during the one-day visit.
Indonesian armed forces are badly equipped, following years of sanctions from the EU and US.
Indonesia will use the Russian cash to plug the holes in its ageing arsenal, with a shopping list including attack helicopters, submarines and amphibious tanks.
Indonesian-Russian relations have become closer since a meeting in Moscow last December, when the leaders pledged to improve economic and military ties.
Indonesia has already bought several jets from Russia. The new deal makes Moscow its main foreign arms supplier.
In a recent op ed published in Novosti Russian president Vladimir Putin wrote of his plans for better Russia/Indonesia relations.
Embarking on an official visit to Indonesia, I would like to share a few thoughts about present and future relations between our countries, about the foundations of our cooperation for over half a century, and the prospects for our work together at the beginning of the new millennium.
Looking back at the history of Indonesia-Russia relations we first of all recall their most glorious moments. Our country was among the first to acknowledge the independence of Indonesia and express solidarity with the Indonesian people fighting for their freedom. We are proud to note the assistance of Soviet experts in building the Krakatau steel plant, the highway network in Kalimantan, the research nuclear reactor in Jogjakarta, the Friendship Hospital and the Bung Karno Stadium in Jakarta.
I cannot help mentioning that recently the relations between Russia and Indonesia have gained a new momentum and become an important issue on the international agenda of our countries.
Political dialogue between Moscow and Jakarta has been developing steadily. The official visit of Mr. Susilo Yudhoyono, President of the Republic of Indonesia, to Moscow late last year was a significant event with tangible results, confirming that Russian-Indonesian cooperation has a promising future, in the spirit of the 2003 Declaration on Principles of Friendly and Partnership Relations between the two countries in the 21st century. Increased inter-parliamentary relations and intensified cooperation between various ministries and other agencies show that both sides are interested in promoting their cooperation.
We note the dynamic and independent foreign policy of Jakarta seeking to play a constructive role in world and regional affairs. The election of Indonesia as a non-permanent member of the UN Security Council for 2007‑2008 testifies to the acknowledgement of its international prestige. Due to the proximity of our positions on the key issues of today Indonesian and Russian representatives are closely cooperating within the framework of the United Nations.
Last December President Susilo Yudhoyono visited the Cathedral Mosque in St. Petersburg – the biggest in Russia and one of the most important mosques in Europe. It is not just a symbol for us. We support mutual respect in all matters concerning culture and civilization. The dialogue with Indonesia as one of the leading states in the Muslim world and as a country with the largest Muslim population is of particular interest for Russia. We are ready to search together for ways of establishing an interconfessional mutual understanding, so necessary under the present circumstances – including within the framework of the Organization of the Islamic Conference, where our country obtained observer status with the support of Indonesia.
We consider Indonesia as a key and promising partner of Russia in the Asia-Pacific region, and as one of the most important “growth points” of the world economy.