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Indonesia shelves foreign arms contracts over money woes

RIA Novosti


JAKARTA, July 30 (RIA Novosti) - Indonesia has put off until 2011 plans to buy two submarines and several warplanes due to financial problems, the Antara national news agency reported on Thursday.

"Although the government will increase the fund allocation by 20% in the 2010 state budget, the increase is not yet enough to purchase main weapon systems such as submarines and new jet fighters," the agency quoted a Defense Ministry spokesman as saying.

Indonesia was planning to buy two submarines in 2010 from a yet-to-be-chosen country. Possible suppliers included Russia, Germany, South Korea and France.

The Defense Ministry said a decision would not be made any time soon.

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