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Indonesia seeks transfer of technology from French arms purchase
Deputy Defense Minister M. Herindra visited the United Kingdom and France this week to follow up on Indonesia’s defense procurement plans from two French giant arms makers Thales and Nexter, insisting it should include transfer of technology.
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Locally made armored and tactical vehicles are displayed after a live demo at the closing ceremony of the 2022 Indo Defense Expo and Forum at the Jakarta International Expo in Kemayoran, Central Jakarta, on Saturday, Nov. 5, 2022. (JP/Novan Iman Santosa)
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eputy Defense Minister M. Herindra visited the United Kingdom and France this week to follow up on Indonesia’s defense procurement plans from two French giant arms makers Thales and Nexter, insisting it should include transfer of technology.
Technology transfer is mandatory in any arms procurement under Defense Industry Law No. 12/2021 as part of the country’s effort to enhance its home-grown defense industry. Indonesia has so far relied on imports to meet its Minimum Essential Force, a long-term military modernization road map that will conclude next year.
“For Indonesia, the most important thing in this procurement process is the commitment to after-sales service and technology transfer," Herindra said in a statement after visiting the Thales UK factory in Belfast, Northern Ireland, on Feb. 27.
Managing director of Thales UK, Philip McBride, received Herindra during the factory visit.
According to Herindra, the French company said it agreed to the terms requested by Indonesia, which also include maintenance, training and upgrade of the products.
Herindra said he emphasized on the technology transfer with a hope to woo the French company to invest more in Indonesia under a partnership scheme with the country’s strategic state-owned enterprises (SOEs) grouped under newly established holding Indonesia Defense Industry (Defend ID).
The SOEs include arms producer PT Pindad, ship builder PT PAL Indonesia, aircraft maker PT Dirgantara Indonesia, electrotechnical company PT Len Industri and explosive producer PT Dahana.
