Non-Subscriber ExtractBriefing: Indonesia unveils defence industry revitalisation plan |
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By Jon Grevatt
12 November 2009
Indonesia is planning to "revitalise" its defence industry base over the next five years as it seeks to increase self-sufficiency and boost exports to countries in the surrounding region, a senior official in the Indonesian Ministry of Defence (MoD) has told Jane's .
Commodore Sudi Haryono, director for technology and industry in the MoD's Directorate General of Defence Facilities, said that the revitalisation plan hinges on improved harmonisation between government ministries, technology transfers and a better understanding of potential customers.
"Our priority as a government is to build a stronger local defence industry," said Cdre Haryono on 6 November. "We understand that we will have to look at buying equipment from abroad if we cannot make it ourselves but our policy is to enter transfer of technology agreements if we have to buy."
Cdre Haryono said that the state-owned defence industry base - which is dominated by four companies, PT Dirgantara Indonesia (aviation), PT PAL (shipbuilding), PT Pindad (armoured vehicles, small arms and ammunition) and PT Dahana (explosives) - is currently hindered by fragmented organisation. The government, he added, was now reviewing the structure with a view to making "streamlining" adjustments.
While ruling out the possibility that Jakarta might consider privatising the defence companies as a means of boosting investment and development, Cdre Haryono highlighted offset and exports as a means of expanding the industry base.