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Discourse: Defense sector to strengthen Oz, RI ties
Steven Ciobo (Courtesy of Australian Embassy)Indonesia is currently developing its own defense industries to meet domestic needs, such as of the Indonesian Military, the National Police and several other agencies, through cooperation with various countries
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Steven Ciobo (Courtesy of Australian Embassy)
Indonesia is currently developing its own defense industries to meet domestic needs, such as of the Indonesian Military, the National Police and several other agencies, through cooperation with various countries. Among those that have a strong presence at the 2018 Indo Defense Expo and Forum is Team Defense Australia. The Jakarta Post’s Novan Iman Santosa conducted a written interview with Australian Minister for Defense Industry Steven Ciobo about possible cooperation. The following are excerpts of the interview:
Question: Indonesia is currently modernizing and upgrading its major weapons systems (Alutsista). How can Australia help Indonesia achieve its aims?
Answer: Australia and Indonesia have a strong and growing defense and trade relationship and Australia sees significant scope to expand defense industry cooperation to support our wider relationship.
Like Indonesia, Australia is undertaking a major upgrade of defense capabilities. There is significant opportunity for the Australian and Indonesian governments to exchange information on different approaches to building stronger defense industries. This would identify opportunities to strengthen Australia and Indonesia’s relationship.
The Indonesian Navy previously operated Australian-made GAF-22/24 Nomad light transport/reconnaissance aircraft and now Kopassus operates the Bushmaster IMV while the Indonesian Air Force operates ex-RAAF C-130H, which have been upgraded and modernized.
What other products or systems is Australia offering to Indonesia?
Australia has a long track record of developing and operating advanced capabilities, some of which are now operated by Indonesia, such as the C130H and Bushmaster. By sharing our experience, Australia can help Indonesia achieve its aim of a modernized defense force. For example, Australian industry worked with the Indonesian government to refurbish C130H aircraft prior to their transfer to Indonesia.
In addition to procuring Alutsista from foreign suppliers, Indonesia is also developing and strengthening its own defense companies. Is Australia interested in helping the development of Indonesian defense companies? How?
Australia publishes an annual Australian Military Sales Catalogue, including a large number of Australian defense companies with a range of high-quality platforms, systems and services. These companies may be able to contribute to Indonesia’s own capability needs and partner with Indonesian businesses.
As part of its localization drive, Indonesia is requiring all products and systems acquired from foreign suppliers to have a certain amount of local content and or transfer of technology schemes. How does Australia see and handle this requirement?
We also recognize that Indonesia, like Australia, is seeking to build a stronger defense industrial base. Australian businesses have a strong track record of partnering with local Indonesian firms to support their development. For example: Thales Australia’s cooperation with PT Pindad to produce the Sanca armored vehicle.
On the other hand, Indonesia also produces a wide range of defense products. Is Australia interested in acquiring any of them?
Australia understands Indonesia’s defense industry has a range of strengths. For example, Indonesia has achieved success in naval shipbuilding exports. Australia’s defense industry recognizes the expertise other countries’ businesses can bring to Australia when they establish partnerships with Australian businesses.
