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Indonesia invites ASEAN to engage in defense industry
Coordinating Maritime Affairs Minister Rizal Ramli has conveyed a plan to improve the national defense industry by encouraging countries in Southeast Asia to obtain minority stakes in the Indonesian defense industry
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oordinating Maritime Affairs Minister Rizal Ramli has conveyed a plan to improve the national defense industry by encouraging countries in Southeast Asia to obtain minority stakes in the Indonesian defense industry.
'Indonesia invites countries in ASEAN to hold stakes in the defense industry ['¦] Depending on only domestic tax for the defense industry might be dull,' Rizal said on Monday as quoted by Antara news agency.
Rizal was in Mataram to attend the National Mass Media convention, a press event aimed at addressing challenges regarding the development of the country's maritime axis vision.
He said involving other parties in the country's defense industry could help the sector to develop.
Currently Indonesia has several companies that focus on defense, namely state-owned land system and weapons maker PT Pindad, aerospace industry player PT Dirgantara Indonesia (PT DI) and shipbuilding company PT PAL.
According Rizal, when France dominated the Airbus company, its sales were low. However, after several European countries joined Airbus, the company became a European aerospace giant and defeated US-based aircraft manufacturer Boeing.
He added he believed the defense industry in Indonesia could experience the same success if it invited ASEAN members to obtain stakes.
Rizal also said the maritime industry in Indonesia had the momentum at present to succeed globally.
However, Rizal noted that Indonesia still lacked the ability to develop brand and marketing strategies when selling its defense industry's products overseas.
PT Pindad president director Silmy Karim said that before divesting defense industry stakes to other countries, Indonesia should have clear reasons for doing so.
'What is the reason behind the divestment? Is there technology transfer? Or is it to increase sales? Or as defense diplomacy? The stance should be clear,' Silmy told The Jakarta Post on Tuesday.
According to Silmy, the defense industry was very different to the commercial industry, citing the development of Airbus.
