The Indonesian Defense Ministry signed a deal to buy 37 BMP-3F more additional amphibious tanks from Russia’s JSC Rosoboronexport for US$114 million. “We will use the Russian state credit facility for this procurement,” Defense Ministry’s defense facilities Chief Maj. Gen. Ediwan Prabowo said after the signing.

JSC Rosoboronexport is the sole Russian state intermediary agency for the export and import of military and dual-purpose products, technology and services.

The tanks, earmarked for the Marine Corps, will be paid for with funds allocated under the 2011 state budget, Ediwan said.

The $114 million price tag for the tanks included maintenance, shipping and training programs, and Rosoboronexport also agreed to include technology transfer as a condition of the procurement, Ediwan added.

The Defense Ministry began negotiations to buy the tanks with the Russians in October, following the purchase of 17 of the same tanks by The Indonesian Military (TNI) in 2008.

The first shipment of the tanks has been scheduled for July 2013, Ediwan said.

“It all depends on the funds disbursement process. If there are no snags, then normally it would take 12 months. But we would ensure that all payments would be completed before June 2013,” Ediwan said.

The BMP-3F has also been purchased by several other militaries, including those of Cyprus, Kuwait South Korea, Sri Lanka, Ukraine and the United Arab Emirates.

Vadim Varaksin, a representative of JSC Rosoboronexport, said that the firm was pleased it could supply weapons and munitions to the Indonesian Army and Navy.

“We are happy that it has become a good tradition that we sign military weaponry procurements almost twice a year,” Varaksin said.

He said that the part of the deal where both sides agrees to commit to transfer of technology was a good basis for the future of Russia and Indonesia’s military relationships.

“This shows that we have established a trust between one another,” Varaksin said.