The phenomenon of military cooperation in the 21st century has moved into the next stage. Today, the military cooperation is not only about seeking balance of power among the countries. In the military cooperation between Indonesia and Russia, both countries have different interests. Russia’s interest is to recover economic power since they are suffering from currency depreciation in the post-cold war era, by selling their armaments to Indonesia. In the other hand, Indonesia’s interest in this cooperation is to seek source for obtaining new high quality and high technology military armaments and equipments since they are suffering from U.S embargo which hampered supplies and part for old armaments. The purpose of this thesis is to describe and analyze the interests and the problems within Indonesia and Russia’s military cooperation. Furthermore, it is also explaining the attempt to resolve the military cooperation obstacles through examining the indicators that generates problems. The data were gained through interviews with Gen. (ret) Ryamizard Ryacudu, Indonesian Army Chief of Staff 2002-2005 and literature review. As the result of the analysis of the data, it is concluded that the factors which created obstacles within military cooperation between Indonesia and Russia are the lack of budget allocation for military sub-sector and the lack of technology advancement or high gap of technology between Indonesia and Russia. Thus, it is important to emphasize solutions that will reduce these problems. In addition, it is necessary for both countries to advance their military cooperation to the next level, which is establishing the joint-investment through their military companies.