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Commitment to defense autarchy in time of pandemic
The pandemic has surely reduced production capacity as the industries have to follow the work-from-home (WFH) policy, with only about 50 percent employees allowed to work in offices.
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Sticking to his guns: President Joko “Jokowi” Widodo examines a rifle produced by state arms maker PT Pindad during his visit to the company’s factory in Bandung, West Java, on Jan. 12, 2015. Pindad is one of the national defense industries that supply the Indonesian Military with weaponry. (JP/Arya Dipa)
R
ealizing defense autarchy has always been one of the biggest dreams of Indonesia. The country’s road to the goal has been long and winding, and the raging COVID-19 is making the challenge even harder.
The struggle to develop national defense industries dates back to launch of the Strategic Industry Management Agency (BPIS), which was established through Presidential Decree No.59/1989. According to the decree, the BPIS was to consolidate the national defense industries for better efficiency and competitiveness in the global market.
One of its greatest achievements came when state aircraft maker IPTN (now PT Dirgantara Indonesia) flew the N-250 Gatotkaca aircraft on Aug. 10, 1995. It gave a morale boost to the nation’s quest to produce defense equipment to fulfill the future needs of the Indonesian Military (TNI).
The Asia financial crisis in late 1990s, however, dealt the national defense industries a major blow. Cash-strapped Indonesia was forced to agree to terms of financial loans from the International Monetary Fund, which prohibited the use of funds to develop domestic strategic industries. In the same period, from 1999 to 2005, Indonesia was subject to a military embargo by several Western countries, which stopped the sales of all equipment and spare parts of the primary weapons system (Alutsista).
Efforts to revive the national defense industries began in the 2000s. As the economy was recovering, the government initiated reforms in the defense sector through a modernization program known as the Minimum Essential Force (MEF). It must be underlined that the MEF was not only intended to revitalize defense equipment but also to empower the national defense industries toward self-sufficiency or autarchy.
Further, Law No.16/2012 on national defense industry requires the TNI to purchase defense equipment from domestic defense industries, unless the latter could not provide the goods in demand. The law also establishes the Defense Industry Policy Committee (KKIP), which inherits the responsibilities of the BPIS, with an aim to realize defense self-sufficiency by bridging the TNI’s needs and development of the domestic defense industries.
The empowerment of the national defense industries has gradually born fruit, yet much needs to be done. Currently, the national defense industries are capable of producing various weapons, combat vehicles, tactical vehicles, munitions warships and submarines, either independently or through foreign development cooperation.
