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Revisiting military and industrial relations
Law No. 16/2012 on the defense industry obliges the Indonesian Military (TNI) to prioritize the domestic defense industry for products, maintenance and repair of defense equipment.
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A N219 aircraft designed by PT Dirgantara Indonesia at an assembly facility. The aircraft is considered to be a suitable vehicle for President Joko "Jokowi" Widodo to use to travel around Indonesia. (kompas.com/Reska K. Nistanto)
T
he end of 2016 marked another controversy in our defense procurement. The Air Force revived a plan to buy Italian-made AW101 helicopters despite the fact that state aircraft maker PT Dirgantara Indonesia (PTDI) can produce helicopters with equal capabilities.
Law No. 16/2012 on the defense industry obliges the Indonesian Military (TNI) to prioritize the domestic defense industry for products, maintenance and repair of defense equipment.
But then Air Force chief of staff Air Marshal Agus Supriatna said the foreign-made helicopters were chosen because he deemed PTDI unreliable, claiming PT DI failed to deliver helicopter orders to the Air Force on time in 2012 and in 1998.
In its defense, PT DI CEO Budi Santoso said the delays occurred as a result of exchange rate gaps between the years of order and the years of delivery.
President Joko “Jokowi” Widodo has twice rejected the proposed procurement of the AW101, saying that the current helicopters for VVIP use remain airworthy.
But the Air Force pushed for the purchase of AW101 helicopters for troop transportation and search and rescue operations, asserting that the plan had been approved by the National Development Planning Agency (Bappenas), the defense and finance ministries and relevant lawmakers.
Nevertheless, TNI commander Gen. Gatot Nurmantyo vetoed the purchase.
