Indo Defence 2016: Boeing looks to leverage Apache sale03rd November 2016 - 10:00 by Tony Skinner in Jakarta

Boeing is eyeing Vietnam as the next potential regional opportunity for its military rotorcraft, after getting a ‘foot in the door’ in Indonesia.
The company is due to deliver the first of eight AH-64E Apache attack helicopters to Indonesia in 2017 and is pursuing an order for as many as 12 CH-47F Chinook heavy lift rotorcraft from Jakarta.
Tae Pak Yeong, regional director of South East Asia for Boeing Defense, said that Vietnam was a key focus for the company, following the May 2016 $11 billion sale to the Vietnam's VietJet for 100 Boeing 737 MAX 200s.
‘That doesn’t translate immediately to the defence sector but as One Boeing we will leverage each other and however the Vietnamese government is comfortable with the pace they are going, we will stay with them. The full lifting of sanctions doesn’t mean everyone rushes in – we have a comprehensive strategy for how we go forward for Vietnam but that is certainly an important market for us as well.’
Meanwhile the first Indonesian Apache will go into production in December 2016, with flight tests expected in June 2017 and delivery in November to December next year.
Company officials said the Indonesian Ministry of Defence had expressed an ‘appetite’ for an additional eight Apaches once the initial batch of aircraft enter service.
Jakarta has also advanced its interest in the Chinook, submitting a pricing and availability request with the US government for four to 12 CH-47Fs.
The company is now awaiting a formal letter of request from the Indonesian government to advance the sale through the US foreign military sale (FMS) process.
‘Previously we had discussions with the Indonesian armed forces, including the defence minister, and they were looking at the CH-47D, the older model Chinook. But recently they have moved away from that and they are focused on getting the CH-47F, which is the current model and that’s what we are focused on right now,’ said Yeong.
The company is also hopeful that should Jakarta opt for an initial order of as few as four CH-47F aircraft, the realities imposed by the country’s geographical and geopolitical challenges will push the armed forces’ case for additional Chinooks.
‘We sold the Apache to Indonesia and that has been a foot in the door,’ Yeong explained.
‘They are looking to buy the Chinook now as they modernise their armed forces and we are ready to participate in fair and transparent competition, working with local industry – we will not just sell the equipment and leave, we plan to stay engaged with the country.’