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Local defense firms told to adopt latest technology

Novan Iman Santosa and Deni Ghifari (The Jakarta Post)
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Thu, November 3, 2022 Published on Nov. 2, 2022 Published on 2022-11-02T19:30:27+07:00

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P

resident Joko “Jokowi” Widodo said on Wednesday that he expected local defense businesses to keep improving their products and to adopt the latest technologies as a way to turn defense procurement into defense investment.

Jokowi was speaking on the sidelines of the 2022 Indo Defense Expo and Forum at the Jakarta International Expo in Kemayoran, Central Jakarta. The biennial event returned after four years after the 2020 show was canceled due to the COVID-19 pandemic.

The President was accompanied by Defense Minister Prabowo Subianto, Indonesian Military (TNI) chief Gen. Andika Perkasa, Army chief of staff Gen. Dudung Abdurachman, Navy chief of staff Adm. Yudo Margono and Air Force chief of staff Air Chief Marshal Fadjar Prasetyo, as well as National Police chief Gen. Listyo Sigit Prabowo.

The entourage toured the JI Expo halls and stopped by several exhibitors, such as state-owned defense holding company DEFEND ID, which includes aircraft maker PT Dirgantara Indonesia, shipyard PT PAL Indonesia, weapons and land systems manufacturer PT Pindad, explosives maker PT Dahana and electronics and communication company PT Len Industri.

Indonesia has been working to improve its defense industry, both state-owned companies and the private sector, to fulfill the needs of the TNI and other security agencies, such as the police and the Maritime Security Agency (Bakamla).

Prabowo stressed that the government was providing equal opportunities for state-owned companies and private-sector manufacturers in state defense procurement drives.

Law No. 12/2016 on the defense industry stipulates that the procurement of defense and security equipment ought to prioritize locally made systems. Only equipment that cannot be made locally is allowed to be bought from foreign suppliers with offset requirements that include transfers of technology and countertrade mechanisms.

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