Germany approves tank sale to Indonesia: source
BERLIN - The German government has approved the sale to Indonesia of about 100 used Leopard 2 tanks and 50 armoured personnel carriers but has put off a decision on a tank sale to Saudi Arabia, a defence source said on Friday.
Germany's national security council, which includes Chancellor Angela Merkel and some cabinet ministers, must approve large arms sales and the government never comments on its decisions.
Indonesia, southeast Asia's largest economy, had previously indicated it would buy 130 Leopard tanks from Germany's Rheinmetall AG as part of a $15 billion five-year campaign to modernise its military.
The German source did not say how much the deal was worth but Indonesia said last year the value of the initial agreement to buy 130 tanks was $280 million.
Indonesia, which has economic growth of above 6 percent, is wary of being left behind as China, Vietnam, Thailand and other Asian nations ramp up defence spending. This year it announced plans to buy more than a dozen Russian Sukhoi fighter jets as well as domestically made, missile-equipped patrol ships.
The industry source said Berlin would delay a decision on whether to sell tanks to Saudi Arabia until after the federal election in September.
It is a sensitive issue in Germany where the opposition criticises sales to some Middle Eastern countries because of their human rights record
Germany approves sale of 150 used Leopard 2 tanks, APCs to Indonesia
10:10 PM
BERLIN (REUTERS) - The German government has approved the sale to Indonesia of about 100 used Leopard 2 tanks and 50 armoured personnel carriers (APCs) but has put off a decision on a tank sale to Saudi Arabia, a defence source said on Friday.
Germany's national security council, which includes Chancellor Angela Merkel and some Cabinet ministers, must approve large arms sales, and the government never comments on its decisions.
Indonesia, South-east Asia's largest economy, previously indicated it would buy 130 Leopard tanks from Germany's Rheinmetall as part of a US$15 billion (S$18.6 billion) five-year campaign to modernise its military.
The German source did not say how much the deal was worth, but Indonesia said last year the value of the initial agreement to buy 130 tanks was US$280 million.
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An opposition politician has told DW that the German government has approved the sale of 164 tanks to Indonesia. The country joins Saudi Arabia, Qatar and the United Arab Emirates on a contentious new export list.
Green party parliamentarian Katja Keul told Deutsche Welle and other news outlets on Wednesday that the contentious tank deal was going ahead. Keul had submitted a formal request for clarification to Chancellor Angela Merkel's government.
Under the deal, German military manufacturer Rheinmetall was given government approval to sell 164 tanks to Indonesia. The deal comprises 104 Leopard 2 tanks, 50 of the older Marder 1A2 infantry fighting vehicles, four tanks specialized for mountain terrain, three mobile bridge-layers and three armored earth-movers, called "pioneer tanks" in Germany. The price is not known.
Indonesia had officially requested the deal during Angela Merkel's visit in the summer of 2012, with Reuters previously reporting that it was likely to be approved.
German military exports must be cleared by a special security council made up of Merkel and most top government ministers, including the defense, foreign, finance and development ministers.
Indonesia had also sought to procure Leopard tanks, considered among the most modern on the market, from the Netherlands, but the deal was stopped in the country's parliament. Indonesia's questionable human rights record helped explain the Dutch decision.
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