31 Mar '13, 2pm

Indonesia's Big Procurement Push Is Aided By Lenders

PARIS — A group of commercial banks has drawn up a loan to fund Indonesia’s purchase of truck-mounted artillery from French land systems maker Nexter, sources close to the deal said. The agreement is the latest in Jakarta’s push to “catch up” on defense procurement after what one analyst called “a long period of atrophy.” And by financing the deal through a bank loan rather than paying cash, Indonesia is part of a growing number of emerging defense markets looking to stretch their buying power as they seek to beef up militaries. “Indonesia is a key target for everyone,” Grant Rogan, chief executive of Blenheim Capital, a specialist in defense offset deals, said March 26. “Our client base, which includes 25 large aerospace and defense companies, all, without exception, view Indonesia as a prime target.” Jakarta’s short-term high-interest loan will pay for 34 Caesar 155mm 52...

Full article: http://www.defensenews.com/article/20130331/DEFREG03/3033...

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