JAKARTA, Sep 4 (Reuters) Indonesia expects to buy Russian defence equipment including tanks and hel

JAKARTA, Sep 4 (Reuters) Indonesia expects to buy Russian defence equipment including tanks and helicopters worth 1 billion dollars when President Vladimir Putin visits Jakarta this week, a Defence Ministry official said today.

Russian and Indonesian companies are also expected to sign oil and gas contracts worth about 10 billion dollars, local media reported.

Indonesia plans to purchase 10 transport helicopters, five assault helicopters, 20 amphibious tanks and two submarines from Russia, which will provide state credit facilities, Defence Ministry spokesman Edy Butar Butar told Reuters.

''We expect the deal to be signed this week,'' Butar Butar said by telephone.

Jakarta turned to Russia and East European countries for weapons several years ago when it was under an arms embargo by the United States. Washington later restored military ties and lifted the arms embargo as a reward for Jakarta's cooperation with the US war on terrorism.

Indonesian President Susilo Bambang Yudhoyono, who visited Russia in December, wants closer long-term military cooperation between the two countries.

Last week, an Indonesian defence ministry official agreed to buy six Russian combat aircraft from plane manufacturer Sukhoi in a deal worth $335 million, but so far no banks have agreed to finance the deal, Butar Butar said.

Weapons for the Sukhoi fighter jets will be included in the $1 billion deal, Butar Butar said.

A Russian embassy official, who declined to be named, confirmed that negotiations for a military purchase have taken place, but would not comment on potential oil and gas deals.

Russia, one of the world's leading arms traders with annual sales topping $5 billion in bumper years, wants to break into new markets.

Russia's biggest state-owned oil company LukOil will sign contracts with Indonesia's state-owned firm Pertamina during Putin's visit.

A Pertamina spokesman Wisnuntoro said the firm would sign agreements to cooperate in oil and gas exploration with LukOil in East Kalimantan, part of Borneo island, and in Papua.

''LukOil will jointly explore to search for oil and gas in those areas, (in) which Pertamina has the licences,'' Wisnuntoro said. He gave no investment figures.

Local media reported that Russia's mining group RusAl will also sign deals with Indonesia's PT Aneka Tambang, while the Russian business delegation is also expected to discuss investment in Indonesia's telecoms and banking sectors.

REUTERS PD BST1445