Indonesia registers USD284 million in defence exports

23 November 2018

Indonesian company PT Dirgantara secured exports valued at USD161 million between 2015 and 2018 through sales of transport aircraft including the NC212 and CN235, a version of which is pictured here. Source: IHS Markit/Ridzwan Rahmat

The Indonesian Ministry of Defence (MoD) has pointed to a list of recent military exports as evidence of growing defence industrial capability within the country.

In comments published by the MoD on 22 November, Rear Admiral Agus Setyadi, the head of the MoD's Defence Facility Agency, which oversees defence procurement and exports, said Indonesian defence companies had secured exports worth USD284.1 million between 2015 and 2018.

He added that these sales were attributable to four companies: aerospace manufacturer PT Dirgantara Indonesia (PTDI), shipbuilders PT PAL and PT Lundin, and land systems company PT Pindad.

Setyadi said PTDI secured exports worth USD161 million through sales of the CN235 and NC212 transport aircraft the company builds under licence from Airbus, and that PT PAL's exports were valued at USD86.9 million for the sale of two Strategic Sealift Vessels to the Philippines. Recent customers of the CN235 are thought to include Senegal, while Vietnam and Thailand have reportedly ordered the NC212 aircraft.

He added that PT Pindad has won export contracts worth USD32.6 million for the sale of munitions and weapons and that PT Lundin secured exports worth USD3.6 million for the supply of small patrol craft to Sweden and Russia. PT Pindad's new customers are thought to be countries in Southeast Asia and Africa.

Setyadi also said that growing defence industrial capability within the country was a priority for the government and that Indonesia intended to continue related development strategies through three core methods: supporting local defence development and production, co-operation with foreign companies through government-to-government agreements, and defence offsets.

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