State-owned weapons manufacturer PT Pindad has started construction on its new munition factory in Malang, East Java, to meet domestic demands, particularly from the Indonesian Military and the National Police.
tate-owned weapons manufacturer PT Pindad has started construction on its new munition factory in the Turen district of Malang, East Java, to meet domestic demands, particularly from the Indonesian Military and the National Police.
Pindad currently exports 10-15 percent of its products.
The company has invested Rp 400 billion (US$29.59 million) in the new factory, located on a 4,000-square-meter plot. The investment is part of Pindad's Rp 700 billion capital injection fund from the state budget.
Pindad president director Abraham Mose said the company planned to increase production capacity from its current 165 million munitions per year to 275 million munitions per year by 2019.
“We need to cooperate [with other parties] to meet the demand to fulfill stores, sports, military needs, police needs,” Abraham said during the ground-breaking ceremony on Monday in Malang.
He said the company was still reviewing several countries, including Canada, the Czech Republic and China as possible partners to help boost production.
As for the remaining Rp 300 billion, Abraham said the company would use the fund to purchase new, more sophisticated machinery to produce large-caliber weaponry and to improve product quality.
Pindad is also developing its industry products unit for manufacturing equipment such as escalators, generators and tractors, to increase revenues to Rp 2.7 trillion this year from Rp 2.3 trillion in 2016. (bbn)
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