“The draft is meant to boost cooperation between the government and the private sector in establishing a stronger defense industry in the future, which, in my opinion, will boost our bargaining position as a nation,” of Defense Ministry secretary-general Vice Marshall Eris Haryanto told a press conference on Wednesday.

Eris said the ministry had scheduled to have the draft ready for legislation at the House of Representatives next year.

He said the planned regulation was needed because the ministry had experienced difficulties when attempting to request transfer of technology, especially from foreign manufacturers that sold the government defense equipment including weaponry, military-purpose vehicles and radar equipment.

“The manufacturers refused to grant our request simply because they don’t want to share that much with us while on the other hand, it has been part of our policy that we have to be able to master — or at least comprehend — the technology of the defense equipment we purchase.”

He said another reason was that the ministry believed defense industry stakeholders lacked the commitment to improve the industry.

“The government and private sector need to join forces so we can offer competitive products to other parties,” Eris said.

He added that to kick things off, the ministry would this year reinforce its commitment with South Korea to start producing the KFX jet fighter prototype.

In this project, Eris said, the Indonesian government would provide 20 percent of the project’s US$8 billion initial capital.

Initiated in March last year during South Korean President Lee Myung-Bak’s visit to the country, the joint operation was aimed at pilot projects between both countries.

“It is likely that we will sign an MoU by the end of this year,” he said.

Following the signing of the MoU, Eris added, both countries would form a team comprising experts tasked with following up the details of the joint project.

“It is projected that five prototypes will be produced by the team before 2020,” he said.

The ministry’s head of research and development, Col. Edy Sulistyadi, who also attended the press conference, said it was estimated the project would break event following the production of 200 aircraft.

“After breaking even, we will be able to sell it to other parties,” he said.

It is reported that the Indonesian Military needs three more squadrons — around 24 fighter aircraft — to be able to fulfill its minimum essential force quota while the South Korea military will employ 200 fighters.

Recently, Indonesia has also inked military deals with China during the visit of the vice chairman of China’s Central Military Commission, Guo Boxiong. The visit was expected to improve the existing military cooperation between the two countries in training and capacity building, joint exercises, exploration of possible military equipment procurement, transfer of rocket technology, and technical meetings between Indonesia’s and China’s strategic industries, among others.

Indonesia and South Korea have inked a deal to produce a prototype KFX jet fighter.

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