As the government continues to talk up the importance of revitalizing Indonesia’s defense industry, it admits financial constraints mean this has to be done in stages.
“We have a state budget of about Rp 1,000 trillion [in 2010], but it’ll be focused mostly on welfare programs,” Defense Minister Purnomo Yusgiantoro said in Surabaya on Saturday as quoted by Antara.
“We must keep in mind that prosperity will not come about without security.”
Purnomo was speaking at the handover ceremony of a new vessel from state shipbuilder PT PAL to the Defense Ministry for use by the Indonesian Navy.
Also in attendance at the ceremony were Navy Chief of Staff Vice Adm. Agus Suhartono and Indonesian Military (TNI) general affairs head Vice Adm. Didik Heru Purnomo.
Purnomo said revitalizing the country’s ailing defense industry was key to meeting the TNI’s needs.
“But it will be a long-term program, as the defense industry is still in its infancy,” he pointed out.
“For the short term, we will focus on meeting the TNI’s basic needs.”
He added the domestic defense industry still faced several problems, such as high production and procurement costs, quality issues and shoddy after-sales service.
“These all are things that the nation has to deal with,” Purnomo said.
“But I’m sure that one day those domestic defense contractors will make progress.”
The Defense Ministry is currently in talks with all stakeholders on revitalizing the defense industry.
The first meeting was held on Nov. 18, and touched on the immediate needs of the TNI and National Police. As second meeting followed on Nov. 24, when defense contractors presented the opportunities and problems they faced.
The third meeting, set for Tuesday, will focus on the likelihood of getting domestic funding.
PAL handed over Saturday the KRI Banjarmasin 592 to be used by the Navy’s Military Sea Transport Command, based at the Tanjung Priok Naval Base.
The KRI Banjarmasin is a landing platform dock (LPD) — the third ordered by the Navy and the first ever built by PAL.
The first two LPDs were imported from South Korea, which agreed to have the next two LPDs be built at PAL’s Surabaya plant.
The first two LPDs are in service with the Navy’s Eastern Fleet.
PAL president director Harsusanto said the company had modified the original design.
The new LPD will be able to carry five helicopters instead of three.
Another new feature is the stealth-based design that gives it a smaller radar cross section.
The KRI Banjarmasin cost US$30 million, half of it for the Korean-made engine.
