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Jakarta Post

Assessing our defense industry

  • Adhi Priamarizki

Jakarta   /   Mon, January 9 2012   /  08:00 am

Recently the Indonesian Defense Ministry stated that they would implement a “defense support economy” principle in the country’s arms procurement business. The purpose of this principle is to synergize defense enforcement with improvements to the national economy. In other words, the Defense Ministry believes that defense and development have a positive relationship.

This positive relationship occurs because arms procurement stimulates economic activities. The defense industry creates a lot of new job opportunities. Further, the defense industry absorbs products from other industries.

For example, a ship consists of various things, such as computer systems, wires, steel, and so on. The defense industry therefore stimulates production in other industries, especially manufacturing. However, the end of the Cold War had an effect in reducing the defense budgets in most c...