The 2012 Indo Defence Expo and Forum, the country’s largest military equipment exhibition, is expected to boost partnership between local and global defense companies, says Vice President Boediono.

Given the fact that local companies are still developing, Boediono emphasized that international cooperation on defense technology will still play a pivotal role in strengthening the Indonesian Military’s (TNI) minimum essential force (MEF).

“While we are building our defense business and its supporting industries, we can also boost the industry by fostering partnerships with established overseas companies,” he said during the opening ceremony of the 5th defense expo at Jakarta International Expo (JIExpo) Kemayoran in Central Jakarta on Wednesday.

Boediono added the efforts of domestic companies in engaging international cooperation had been supported by the National Defense Industry Law passed in early October.

The law mandates foreign defense companies to provide education, training and transfer of technology to their local counterparts, in order to participate in improving the capabilities of Indonesia’s defense industry.

The biennial event is indeed a prospective forum for domestic companies to get new deals as 600 companies from 50 countries are participating in the four-day exhibition.

Among them are the world’s biggest defense contractors, such as American global aerospace and defense company, Lockheed Martin and Russian aviation giant Sukhoi.

Robert Laing, an executive from Lockheed Martin, said that his firm had initiated a partnership with a local company, CMI Indonesia, prior to the enactment of the National Defense Industry Law.

The agreement was signed in February and they recently completed a review to check the readiness of CMI to begin production. The review qualified the Bandung-based company to start manufacturing the TPS-77 and FPS-117 long-range surveillance radars.

Lockheed and CMI are jointly pursuing the National Airspace Surveillance — Republic of Indonesia (NASRI) program, with a purpose to produce more than 20 new radars.

“If we get the contract, all the ordered radars will be made in Indonesia. And maybe, we can produce more for export,” he told The Jakarta Post.

Korean Aerospace Industries (KAI) has had a partnership with state-owned aircraft manufacturer PT Dirgantara Indonesia (PT DI) since 2005.

Junhyun Jo, a KAI marketing executive, said that PT DI is responsible for reassembling, coloring and checking the FA-50 light combat aircraft ordered by Indonesia’s Air Force.

“We want to conduct more production here, but this means we need to build new facilities, which needs big investment,” he said.

The Indo Defence Expo is not only being used as an up-to-date military equipment market, but is also a space for the government to show its latest shopping items.

German tank producer, Rheinmetall, displayed Leopard 2 main battle tanks (MBT) and a Marder infantry fighting vehicle (IFV), which Indonesia has ordered 100 units worth US$280 million in an effort to upgrade its obsolete military equipment.

“The procurement is still in progress, but at least now we can see this Leopard MBT and Marder medium tank. By having these vehicles, we will have a complete series of tanks, ranging from light to heavy ones,” said Defense Minister Purnomo Yusgiantoro at the expo venue.

Indonesia has been trying to upgrade the TNI’s worn-out equipment in recent years. In addition to the 2012 law on national defense industry, the government has proposed raising next year’s defense budget to Rp 77 trillion ($8 billion), from Rp 72.54 trillion in 2012. (yps)

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