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Jakarta Post

Pindad secures Rp 1.3 trillion in new contracts

PT Pindad secured Rp 1

Nani Afrida (The Jakarta Post)
Jakarta
Mon, September 27, 2010

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Pindad secures Rp 1.3 trillion in new contracts

P

T Pindad secured Rp 1.3 trillion (US$145.6 million) in contracts between January and September
this year, the state-owned arms manufacturer’s top executive said Friday.

“We were awarded the contracts mostly by the Defense Ministry and local mining companies,” Pindad president Adik Avianto Soedarsono told reporters in Jakarta on Friday.

He said that the company might book up to Rp 1.5 trillion in new contracts this year, pending the outcome of several ongoing negotiations.

Adik said that the majority of Pindad’s contracts had been awarded by the Defense Ministry, which had so far this year ordered more than Rp 900 billion of weapons, ammunition and Panser armored personnel carriers.

The value of the orders from the Defense Ministry rose sharply from Rp 650 billion in 2009.

“The ministry orders weapons, ammunition and Pansers from us,” he said, adding that this year the ministry had ordered 80 million bullets, up from 40 million last year.

The company had also received orders for explosives from several local mining companies, he said.

“We hope the orders from local mining companies for Pindad’s explosives will further increase next year as the company has been able to produce a number of explosives that were previously imported,” he added.

Pindad produces ammunition, armored personnel carriers, assault rifles, grenade launchers, pistols, submachine guns and riot control water-cannon vehicles.

The company was founded by the Dutch in Surabaya, East Java, in 1808 under the name Artillerie Constructie Winkel.

It moved to Bandung in 1923 and was handed over to the newly independent Indonesian government
in 1950.

Pindad has previously exported munitions to the United States.

The company previously signed a contract to sell 20 million bullets to a sporting goods company in the US, Adik said.

“However we were only to provide 10 million bullets due to our aging machinery,” Adik added.

Pindad has allocated Rp 50 billion in 2010 to add new equipment in its ammunition factory, he said.

“We will buy seven bullet assembly machines worth ¤1 million [US$1.35 million] per unit,” Adik said, adding that Germany and France were the only countries that manufactured the machines.

Pindad expects to book Rp 1.2 trillion in total revenue this year, a 40 percent increase from Rp 800 billion in 2009.

“As of September, total revenue has reached Rp 600 billion,” he said.

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