REPUBLIKA.CO.ID, JAKARTA - Russian Trade Minister Denis Manturov said that trade and economic items discussed with Indonesia's newly inaugurated President Joko Widodo, included Russian oil exports, Indonesian oil refinery construction, port infrastructure and military equipment sales, 

"Our Indonesian partners are interested in participation of their local military industries in joint co-operation and production with Russian partners," he said. "We are ready to promote and further develop this kind of joint co-operation with Indonesia."

Indonesia has sharply increased its defence budget since 2010 as the military looks to bolster its capacity to protect shipping lanes, ports and maritime boundaries. In March last year, defence officials in the Southeast Asian nation said it planned to buy more than a dozen Russian Sukhoi fighter jets as part of a 15 billion USD five-year campaign to modernise its military.

Russia's economy has slowed due to the tumbling oil price and after it faced several rounds of US and EU economic sanctions over its involvement in the Ukraine crisis. The country is actively looking to build greater economic ties outside of Europe and the United States, and Manturov said he hoped his trip would help strengthen bilateral trade with Indonesia.

Sanctions on Moscow, a weakening rouble and a Russian ban on food imports from a number of Western countries have pushed annual consumer price inflation higher. The weak rouble would lower the cost of production for many industries and benefit local buyers, said Manturov, adding that the sanctions would also help develop Russian technologies.

Restrictions within financial markets had caused difficulties for conducting some financial and monetary activities, he said, but that Russia was looking to develop schemes using local currencies with its partners in Southeast Asia and the Middle East.

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