Indonesia’s defence industry, represented by DefendID, is making strides at ADAS 2024 in Manila, continuing its mission to promote homegrown military products on the global stage. DefendID, a state-owned company overseeing five key SOEs, aims to highlight Indonesia’s growing technological and manufacturing capabilities in the defence sector.
In an interview with Yulian Ardiansyah from Daily News, Col. S. Iskandar of the Indonesian Army (TNI-AD), Head of the Sub-Directorate for Promotion and Cooperation, Directorate of Defence Industry Technology, emphasised that DefendID’s participation is mandated by Indonesian law to promote the country’s defence companies and products. He highlighted the organisation’s extensive experience in major international exhibitions, as well as progress related to the development of privately owned Indonesian defence companies.
The following are excerpts from the interview:
Could you share some insights into DefendID’s participation in ADAS 2024?
“We’re participating in this event based on Law No. 16 of 2012 regarding the defence industry, specifically to promote the products developed by Indonesian defence industries. Domestically, we’ve done this through platforms such as Indo Defence, and internationally, we’ve participated in numerous exhibitions, including DSEI in London, the Paris Airshow, and IDEX in Abu Dhabi. In fact, we’ve attended nearly all major international defence exhibitions.”
What are some of the key companies and their products being showcased at ADAS 2024?
“At the DefendID stand, we represent a state-owned company overseeing five SOEs in the defence industry: PTDI, PT PAL, PT Pindad, PT LEN, and PT Dahana. Although we attend ADAS every two years, this time we’re focusing on PTDI, PT PAL, and PT Pindad. This is because we view ADAS as a particularly promising market for these three companies.
“As many know, PT PAL has secured contracts for the procurement of two logistics ships (LPDs), followed by another contract for two additional LPD units. PT Pindad has previously offered the Harimau tank, which, although not yet successful, is now entering mass production to meet the needs of the Indonesian Army, making it still worth promoting. Similarly, PTDI is presenting its N212i aircraft, while also promoting the N219 and the amphibious N219.
“We’re also showcasing leading products from private defence industries, such as PT Sritex with its military uniforms and textiles, PT Infoglobal with its range of avionics products, and GMF AeroAsia in the field of aircraft MRO, including military transport aircraft.
“Additionally, PCM Marine is showcasing specialised cabling products for naval ships, and PT Sari Bahari, which recently exported training bombs to the Vietnamese Air Force, is also present. There are many more. We hope this exhibition will further promote our defence industry and lead to sales, whether to the Philippine Armed Forces or other nations, as this exhibition serves as a platform for such opportunities.”
Considering that DefendID oversees five SOEs and also includes private companies, what additional steps is DefendID taking to support the development of private defence industries in Indonesia?
“These opportunities are no longer exclusively for defence SOEs but now extend to private companies as well. This shift follows the introduction of the Omnibus Law in 2020 by President Jokowi, which ensures that equal opportunities are given to all players in the defence industry, both SOEs and private companies, allowing them to enhance their technological capabilities and production capacities.
“This benefits private companies while also encouraging SOEs to improve their performance and competitiveness, so they aren’t left behind by private firms that are continuously striving to enhance their capabilities. If both SOEs and private companies develop together, it will ultimately benefit both sides.”
Does this mean that private companies can now take on the role of ‘lead integrator,’ which was previously reserved for defence SOEs?
“Before the Omnibus Law, only SOEs had the capacity to be ‘lead integrators,’ while private companies were limited to being second-tier suppliers, no matter how capable they were. Now, if private defence companies demonstrate the required capacity and production capability, they can assume the role of ‘lead integrator.’
“However, if private companies still lack this capability, the role will continue to be held by SOEs under DefendID. For example, PT TTS, which manufactures ship control panels, remains a subcontractor to PT PAL, as they are not involved in shipbuilding, which is PT PAL’s domain.
“To help private companies improve their capabilities and production capacity to potentially become lead integrators, they can collaborate with other principals or invite related private industries to join them. Here, we act as mentors, working with relevant stakeholders, as these tasks cannot be done in isolation.”
What steps are being taken following the implementation of the Omnibus Law?
“This is being done gradually. It doesn’t mean that private companies can suddenly take over the role of lead integrator the moment the Omnibus Law was enacted. It depends on assessments that we conduct annually, evaluating the TRL (Technology Readiness Level) and MRL (Manufacturing Readiness Level) of each company, whether SOE or private, within the defence industry.”
What are the expectations for the development of DefendID and Indonesia’s defence industry as a whole, particularly with the upcoming new government and a new Defence Minister?
“The development of the defence industry is a programme that was initiated by Mr Prabowo during his tenure as Indonesia’s Minister of Defence. With his upcoming inauguration as President, we expect this initiative to continue, as he has already laid out a vision for our industry to keep advancing, become highly competitive, and be self-sufficient. Achieving this requires following a process that must be sustained, regardless of who will be appointed as the new Defence Minister.
“We believe this approach is the best way to ensure that greater attention is given to this matter, not just by Mr Prabowo but also by President Jokowi, who has similarly emphasised the importance of prioritising the purchase and use of domestically produced goods as long as we are capable of producing them locally.
“If we do not yet have that capability, the law allows us to make foreign purchases under conditions such as offset and technology transfer, with approval from KKIP (Defence Industry Policy Committee). This is what we will use to further develop our domestic industry’s capabilities and capacity.”
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