ID :
33825
Thu, 12/04/2008 - 11:03
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INFID: RI HAS GOOD REASONS TO RESCIND GERMAN WARSHIP PURCHASE

Jakarta, Dec 3 (ANTARA) - Non-governmental organization INFID (Forum on Indonesian Development) said Indonesia had good reasons to stop paying a US$560-million debt to Germany on the purchase of 39 used warships, and demand the return of past repayments.
The INFID's view was expressed by its director, Donatus K Marud, here on Wednesday in response to the efforts by the House of Representatives (DPR) to muster internal support for the formulation of a recommendations to enable the government to rescind the deal with Germany.
Marut said the House's effort needed to be supported as it had a strong basis, namely the purchase of the warships was done without the approval of two countries' parliaments. Therefore, he urged the government to immediately take systematic steps to cancel the deal.
The government should take appropriate steps to ask Germany to return all the funds already paid by Indonesia, he said.
In 1992, Indonesia and Germany signed a contract on the purchase of 39 warships that used to be part of the former East German navy.

The 38 warships consisted of 16 Parchim Corvettes, 14 Frosch Troop Landing Ship Tanks and 9 Condor mine sweepers.

To get the ex-East German warships, Indonesia had to pay US$442 million. But the vessels could not be immediately operated by the Indonesian navy as their construction was designed for cold waters and for short-distance cruising in addition to their aging condition.
According to INFID, the warships were not suited to tropical water conditions and Indonesia's archipelahic geography. Hence, they had to undergo significant modifications at great financial cost.


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