DEFEND ID, according to Bobby, aims to continue its commitment to generating significant impact for the local defense industry, as well as supporting the national economy. Nevertheless, while the overall amount could portray a good performance by the Indonesian defense industry, including from the private sector, the road to the objectives set by President Joko “Jokowi” Widodo, to rank within the top 50 of global defense equipment suppliers, is long, winding and bumpy.

Indeed, some observers believe the $5.3 billion contract value achieved last year does not only include defense and security equipment. For example, companies such as PT Dahana and PT DI have recorded several major commercial contracts. Moreover, while the domestic defense industry representatives have lauded the signing of 30 memorandums of understanding (MoUs) with foreign partners during the latest Indo Defense Exhibition last November, the agreements are by no means contracts, as MoUs are generally not legally binding.

Nevertheless, the trend is encouraging and 2023 could be the year of DEFEND ID, and by extension for the whole domestic defense industry, for several reasons.

First, the ongoing modernization of the Indonesian Military (TNI) is steadily progressing. While the Minimum Essential Force (MEF) plan will not be achieved by its deadline in 2024, several major procurement programs are still under way and more should come into force by the end of 2023. From this perspective, opportunities are on the table for the domestic defense industry, as well as for DEFEND ID. It should also be noted that the evolution of the security context at regional and global levels should also lead Indonesian decision-makers to accelerate this modernization. As a matter of fact, the impact of the war in Ukraine and the increasing territorial tensions and risk of armed confrontation in the Indo Pacific region should persuade the Indonesian government to make sure the TNI is well equipped and trained to deter potential aggressors and protect the country’s territorial integrity and sovereignty.

Second, the upcoming procurement contracts should help the local defense industry to continue its growth and to modernize itself, while reaching greater industrial maturity through the development of capacities and capabilities.

Indeed, Law No.16/2012 on the national defense industry stipulates that each major procurement project in the sector should be supported by packages of offsets, local content and transfers of technology. Interestingly, the upcoming defense acquisitions will include such packages.

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