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Jakarta Post

Weapons maker Pindad books Rp 98 billion in profits

  • Arya Dipa

    The Jakarta Post

Bandung, West Java   /   Fri, January 25, 2019   /   03:54 pm
Weapons maker Pindad books Rp 98 billion in profits Workers of state-owned weapons manufacturer PT Pindad prepare to display a medium-sized Tiger tank at Indo Defense 2018 Expo and Forum in Jakarta from Nov. 7 to 10. (The Jakarta Post/Dhoni Setiawan)

State-owned weapons manufacturer PT Pindad announced on Thursday that it booked net profits of Rp 98 billion (US$6.94 million) in 2018, higher than the Rp 92 billion it booked in 2017.

“We want a three-digit net profit this year,” said PT Pindad president director Abraham Mose in Bandung, adding that the figure exceeded last year's target of Rp 94 billion.

Pindad recorded Rp 3.2 trillion in revenues last year, most of which came from the sales of its core products like guns, ammunition and battle vehicles, said Mose, adding that the company also produced sideline products like agricultural equipment, heavy equipment and braking systems for trains.

Meanwhile, its revenues from exports increased by about 12 percent, compared to the previous year's figures, he said, adding that the profits would be spent on employee bonuses, building maintenance and investment, as well as on dividends.

This year, the company would focus on the assembly of medium-sized tanks, which was the company’s new combat vehicle, the prototype of which was certified by the Army’s Research and Development Agency last year.

The tank was jointly developed by Pindad and Turkey’s FNSS Defense Systems Inc.

Mose said the medium-sized tank was part of the country’s longstanding program to create an independent defense system as Pindad’s engineers had mastered the development of its software, even though the engines and the armors were still being imported.

The Defense Ministry was expected to purchase 22 to 24 of the tanks, Mose said. However, he added that a sales contract had not yet been signed. (bbn)