Washington had not given its guarantees to Jakarta that Indonesia would not face sanctions under the US Countering America's Adversaries Through Sanctions Act (CAATSA), which targets, among other things, Russia’s international transactions, the Kommersant newspaper reported, citing two Russian defense industry top managers and a source close to the presidential administration.
Moreover, the parties planned to use a loan from a Russian commercial bank as part of the contract. However, no banks were willing to engage in the deal since they might face US sanctions over cooperation with Russian military exporter Rosoboronexport, the outlet added.
"The situation is unpleasant but it is not critical. We maintain constant contacts with our Indonesian partners, we are looking for ways out of the situation," one of the newspaper’s interlocutors said.
In August, Indonesian Ambassador to Russia Mohamad Wahid Supriyadi told Sputnik that Jakarta expected to receive the first Russian Su-35 Flanker-E fighter jet under the bilateral contract in October. However, the diplomat noted in a comment to Sputnik in September that Indonesia expected the first jet to be delivered in October 2019.
In June, the ambassador said that Indonesia had signed a contract with Russia to purchase 11 new Sukhoi aircraft, calling the deal "very large."
According to the Indonesian Trade Ministry, the contract is worth $1,154 billion and stipulates that Russia will purchase Indonesian goods worth $570 billion under it.