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She has no say in all of this but it is the president and his on board.. Lets wait and see. But you will be disappointed just be warned

That big plan comes out due to the leak from Defense Ministry office himself. For information, it is still in the form of draf and hasnt come out from Mindef office (not yet pass to Planning Ministry, Finance Ministry, and President office).

Some one inside his circle, look like, has seen this plan as dangerous for our local defense industry future market and progress and also our economy situation. LOL even Minister of Finance is going to tax rice and other essential goods to make our budget healty which clearly shows we are facing big economic challenge ahead

It is a leak that in the beginning is rejected by Minister of Defense top officials and then the leak that first is taken by Miss Connie Rakahundinie is distributed to the media and because of that Prabowo and his inner circle cannot deny again, particularly after parliament asked about this in their meeting with MinDef.

The perpres draft leak is a bless for Indonesia

This is a bless for Indonesia since now we know what is Prabowo plan if he successfuly becomes a President. This plan will likely burden his plan to become a President and will likely be used by other candidates to attack him by informing Indonesian people that Prabowo lack competency interm of very importance matter which is economy and also he shows preference on foreign defense equipment than local defense product.

Latest twitt from his spoke person also clearly see their vision to put local defense industry as "maintenance supplier" rather than OEM (Original Equipment Manufacture)

Latest example

Latest deal on Fincantery (that is stated by our defense analyst as preliminary deal) also once again strengthen my point that Prabowo doesnt care on our local defense industry. In the website of that Fincantery, there is no clear thing about offset and local participation beside the statement they will see whether defense cooperation with PAL can be done.

It is clearly a weak deal in relation to the connection with our local industry, particularly when we compare other offer from Japan and what has become a deal with Denmark which is started under previous Minister of Defense

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Here what is stated in their official website

Fincantieri will be prime contractor for the entire program. The construction of the frigates will ensure significant employment benefits not only for several Italian shipyards of the Group in the next years, but also for other companies in the sector, namely Leonardo, as well as numerous small and medium-sized national companies, and will see the collaboration of the local PT-PAL shipyard (Java island). The modernization of the two Maestrale class vessels, which Fincantieri will acquire from the Italian Navy once decommissioned, will also be carried out in Italy.

 
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LOL Jokowi ask for grand design for 25 years ahead, that of course will include many thing like local industrialization and others......

And then this stupid plan from Prabowo comes as the answer of that request, where it is still being worked in Prabowo office, it hasnt been approved by Jokowi himself

Jokowi main strategy in defense spending is very clear, it should be for investment for local defense industry

I agree with this. Look, Jokowi knows jack sh*t about defence. In fact, he doesn't know anything at all. If he knows his stuff he would ask the previous MoD to do exactly the same. The fact is that the previous MoD did almost nothing in big tickets procurement. So all of this, is down to Prabowo.

Jokowi only takes Prabowo's plan for granted. He can't do anything to stop it as he doesn't really know what's actually his best option. But he's convinced enough on the plan as he sees that out of 9 parties in the House of Senat (DPR), only 2 said No. So he just goes along with it.

So yes, it's all Prabowo here.
 
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I agree with this. Look, Jokowi knows jack sh*t about defence. In fact, he doesn't know anything at all. If he knows his stuff he would ask the previous MoD to do exactly the same. The fact is that the previous MoD did almost nothing in big tickets procurement. So all of this, is down to Prabowo.

Jokowi only takes Prabowo's plan for granted. He can't do anything to stop it as he doesn't really know what's actually his best option. But he's convinced enough on the plan as he sees that out of 9 parties in the House of Senat (DPR), only 2 said No. So he just goes along with it.

So yes, it's all Prabowo here.

The reason Jokowi put Prabowo as Minister of Defense is a political one, not because the same strategy that they adopt. As Minister he should be inline with President strategy, "Osprey possible deal" for instant can be seen as example where Jokowi can make any intervention on Defense Ministry plan if he seems as necessary.

Basically previous Mindef is something that we can see as a showcase of what Jokowi "real" policy on defense. Previous term (2014-2019) has been seen as the period where majority of defense equipments are bought from local defense industry. Mostly are not catchy equipment like small and medium transport plane and also MPA planes, helicopters, tanker vessel, LST, LPD, Hospital Ships, ammunitions, medium tanks, IFV, and others where majority can be fulfilled by local defense products. Iver deal where all two frigates should be made completely in PT PAL is also a showchase of his first term result.

This is because previous Mindef is not a heavy weight political figure like Prabowo that has his own ego and for the last 10 years were fighting against Jokowi in the media, parliament, and Presidential debate and contest. Prabowo has its own idea about defense and we can see clearly the contrast of Prabowo and Jokowi strategy and plan about defense matter during Presidential debate that include threat prospect and others.

Regardless of that, Jokowi is still a President and what Prabowo asked is to have President Regulation (Perpress) that can allow him to buy huge foreign defense equipment while President Regulation that he wants to make cannot become any law if President doesnt agree. It should pass Minister of Finance and Minister of Planning first before it can go to President office where Presiden has also had veto to pass the draft or reject it when the draft finally enters his office.

Do parliament members have any say on this matter ?

The parliament members that support Prabowo plan is only Defense Commission, not entire Parliament. That is only a small fraction of Parliament members and the support as being revealed by Tempo Magazine is due to a lobby process conducted by Prabowo. I salute to PAN and Democrat parties in that Commission that reject the idea. These are responsible members we have in that Parliament Commission 1.

This is also not the area where Parliament can have any say as the President Regulation is still in the form of draft and has not yet become the real President Regulation. The support from majority of Commission 1 parliament members that we know from the media is also a result of Tempo Magazine investigation, not yet their party position but more on that Commission 1 circle. If President reject the draft, it will not pass into Parliament where it will be officially discussed to get Parliament approval.

Jokowi policy

Jokowi policy on how we should spend defense budget has been so wildly known as it should be an investment for local defense industry and he is a President who put more trust on his economic team than non economic team. It is also his final term, he doesnt have any need to please others and this is the last term where as person that become Indonesian leader he should be able to accomplish his own mission and strategy.

 
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2 things of note regarding the planned Rafale purchase :

1. Florence Parly actually came to Jakarta earlier this month for the signing of the LoI
2. Purchase will be done using soft loan, namely a loan guaranteed for 80% of the total amount of the contract.

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Indonesia signs letter of intent to buy 36 Rafale fighters

Indonesia reportedly signed a letter of intent to acquire 36 Rafale fighter jets from France.
Since the visit of the Indonesian Minister of Defense Prabowo Subianto to Paris in January 2020, rumors emerged of a potential acquisition of Dassault fighter jets to renew the Indonesian Air Force fleet.
In February 2021, the Chief of Staff of the Indonesian Air Force, Fadjar Prasetyo, confirmed a plan to purchase 36 units of the French fighters and 8 F-15EXs by 2024 ‒ probably so as not to upset their US ally.

French Minister of Armed Forces Florence Parly confirmed that her Indonesian counterpart was eager to acquire 36 Dassault Rafale jets as soon as possible.

The order now seems to move forward, as a letter of intent was reportedly signed during a visit to Jakarta by Florence Parly, the French Ministry of Armed Forces, on June 7, 2021. The financing of the acquisition would be similar to that proposed by France to Egypt, namely a loan guaranteed for 80% of the total amount of the contract.

Currently, the Indonesian Air Force flies a mix of around 50 F-16 A/Bs and C/Ds, along with about 10 Russian Su-27SKM and Su-30 fighters.
In November 2020, the United States Secretary of Defense Mark Esper turned down the prospect of Indonesia acquiring a number of F-35As and made a counteroffer by proposing a number of F-16 “Viper” fighters, the last version of Lockheed-Martin’s best-seller, instead.


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Even though the purchase will be done with up to 80% loan provided by France, it will still need to comply with our Offset / ToT laws... So I believe what the Mindef and Dassault will be doing now (till Dec 2021) is to iron out the details regarding ToT and offset that comes with this purchase..
 
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The thunderclap of Fincantieri in Indonesia strongly shakes France

The slap is enormous for the French export team. Especially since nobody saw it coming.
Michel Cabirol


Michel Cabirol
June 17, 2021, 6:00

Fincantieri's mega-hit in Indonesia announced a week ago is making waves in France. Waves in depth for the moment even if a few bubbles rise to the surface as the great disappointment on Franco-Italian cooperation expressed by the General Delegate for Armaments (DGA) Joël Barre during his hearing at the National Assembly no open to the press. It must be said that the importance of the contract of 4.1 billion euros (six Italian FREMM frigates and the modernization and sale of two Maestrale frigates), rightly calls out in France at the time when the charge of the Lorient shipyard to Naval Group is not insured for the moment beyond 2028 (after the end of the construction of the five FDI frigates for the French Navy). And all the more so since this contract is already in force,according to some sources from La Tribune.

Within Naval Group, which has not filed bids, according to concurrent sources, and within the ministry, the announcement of the contract by Fincantieri was much surprised and hard to digest. It also calls on Naval Group and the government to do all European cooperation at all costs, and especially in the Navy with Fincantieri within Naviris, the common company specializing in surface buildings. The Indonesian contract for the Italian naval site is therefore a huge blow for France, which today feels betrayed by its partner. Perhaps by naïveté, the French team nevertheless gave the baton to beat themselves.

Also, several questions arise after this huge French inconvenience: why did Naval Group not file an offer? What role did Naviris play in this offering? Why were the French also surprised by this announcement? Are the Italians reliable partners within Naviris? While the Italians, who therefore sold six FREMMs in Indonesia, offer this type of frigates in Greece, Egypt and Saudi Arabia, why did France prefer FDI to FREMM?

In Indonesia, the French naval group has somewhat abandoned the surface building campaigns launched by the Indonesian navy in favor of the prospect of more strategic and, perhaps more affordable, submarines. It was a choice that was made several years ago by former CEO Hervé Guillou, followed by Pierre Eric Pommellet. Other sources estimate that Naval Group itself may have been prevented from making an offer under secret agreements between Naval Group and Fincantieri, which shared the world on a commercial scale at the time of Naviris' creation. In this regard, Indonesia as well as the Philippines would have been "reserved" for Italy. This agreement did exist, according to a source close to the case, but was drawn up on the grounds of canine cuts given by Fincantieri in countries "reserved" to the Naval Group (Greece, Saudi Arabia and Egypt).

Is it Fincantieri or Naviris, which brought the Italian offer to Indonesia? The sale of the six Italian FREMMs is, according to our information, a project marketed by Fincantieri and politically motivated by a state market. On the other hand, there is some doubt about the renovation of the Maestrale, which could be carried out as part of the joint venture between Fincantieri and Naval Group. In any case, in France no one was seen coming. Neither the state, nor the intelligence services, nor Naval Group and nor Thales, whose Dutch subsidiary is, however, very present in Indonesia. Fincantieri has quietly negotiated to the end in top secret with Jakarta, where the announcement of the contract with Fincantieri also makes some waves. Question: Weren't the compliance services too jealous in blocking the eyes and plugging the ears of France in Indonesia, and more generally in the world?

France is disappointed by the lack of loyalty of Italians, who have yet legitimately defended their interests. Naviris now seems to be a more and more empty shell. The company is now involved in R&D projects, preparation for the modernization of the Horizon frigates and the European Patrol Corvette (EPC) project. Far from initial ambitions. In addition, Italians burn all wood for export. According to our information, they have made an offer in Greece based on constellation type FREMM, in Saudi Arabia (four FREMM) and in Egypt (two FREMM). This is where France offers FDI or Gowind francs. In addition, the Italians offer patrols to Ghana at the Great Ocean Dam ..

Success in Indonesia also depends on the choice of the Italian FREMM, which has a displacement of 6,500 tons (against 4,460 tons for FDI, which is therefore lighter). A war ship that pleases the marines ... Moreover, Fincantieri also proposes it to Greece, Egypt and Saudi Arabia. The choice of these three countries will therefore validate or not the orientations taken by Naval Group, which had in the time of Hervé Guillou the arm of the National Navy, in favor of FDI at the expense of FREMM. An FDI was launched just to become the lifeblood of the Naval Group's trade policy on exports and to also make the group's study bureaus work. The momentum is approaching ... And it will forcibly accompany it in the midst of social issues, especially in Lorient, which awaits a decision from Greece. A success is vital for this site, which will build one of the four frigates in France.
 
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I believe that the A330 MRTT is not only the best option there is, but is also the only reasonable one for us...
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21 JUNE 2021

Indonesia approves USD700 million in foreign loans for aerial tanker buy
by Ridzwan Rahmat

The Indonesian Ministry of Finance (MoF) has granted approval for the country to obtain up to USD700 million in foreign loans to procure two aerial tankers for the Indonesian Air Force (Tentara Nasional Indonesia Angkatan Udara: TNI-AU) in 2021.

This was revealed in a notice issued by the MoF on 26 April listing a total of 31 Ministry of Defence (MoD) programmes for which funding through foreign loans has been approved.

Issued after consultations with the MoD and the Ministry of National Development Planning (Kementerian Perencanaan Pembangunan Nasional: BAPPENAS), the list, which was initially classified, has been provided to Janes by a government source. The document also shows that a total of 56 requests for foreign funding were rejected.

Janes was first informed by a source at the Singapore Airshow 2018 that the TNI-AU had appointed GMF AeroAsia, a subsidiary of national carrier Garuda Indonesia, for assistance with an in-depth study on Indonesia's aerial refuelling capabilities.

A Royal Australian Air Force KC-30A (A330) MRTT with its refuelling hoses out. Indonesia is also considering this aircraft type for its aerial refuelling requirements.  (EADS)

A Royal Australian Air Force KC-30A (A330) MRTT with its refuelling hoses out. Indonesia is also considering this aircraft type for its aerial refuelling requirements. (EADS)

Among the matters that were explored in the study were life cycle costs, local capabilities in maintaining the airframes, compatibility of refuelling methods with the TNI-AU's fleet of aircraft, and inter-operability with existing and future TNI-AU assets.

As part of its findings, the TNI-AU and GMF AeroAsia recommend that the new tankers be equipped with both the probe-and-drogue and flying boom aerial refuelling methods, Janes has learnt.

Prior to the joint study with GMF AeroAsia, the TNI-AU had conducted its own preliminary study comparing Airbus' A330 Multi Role Tanker Transport (MRTT), Boeing's KC-46A Pegasus, and Russia's four-engined Ilyushin Il-78.


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10 JUNE 2021

Indonesia commits to increased local content levels in defence
by Jon Grevatt

Indonesia is planning to increase the “domestic content level” of defence products and technologies in operation within the Indonesian Armed Forces (TNI), the Ministry of Defence (MoD) in Jakarta has stated.

The intention is aligned with recently enacted national legislation that encourages the country's private sector to play a deeper role in defence research, development, and production activities. The sector has traditionally been dominated by state-run enterprises.

 
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23 June 2021

UK government reports export credit arrangements for 2020

by Charles Forrester

The UK's export credit agency, UK Export Financing (UKEF), revealed in its annual report on 22 June that it had underwritten a record GBP12.3 billion (USD17.1 billion) for UK industry during the 2020/21 financial year.


Key transactions in the annual report included the beginning of the drawing of GBP1.13 billion to BAE Systems in support of the manufacture of Eurofighter Typhoon and BAE Systems Hawk trainer aircraft to Qatar. In addition, buyer credit guarantees for Indonesia were supplied for the acquisition of Lockheed Martin C-130J Hercules medium transport aircraft (maximum liability of GBP74.6 million) and air-defence systems from Thales UK (maximum liability of GBP29.8 million).


UKEF supported the financing of C-130J Hercules aircraft for Indonesia during 2020. (Janes/Patrick Allen)

UKEF supported the financing of C-130J Hercules aircraft for Indonesia during 2020. (Janes/Patrick Allen)

The report also noted that “a strong pipeline of transactions is in place for 2021–22” for defence deals. The organisation is also anticipating a significant transaction in support of the space sector in the coming months, with space also being a potential significant growth area.

The maximum export credit liability for the defence sector in 2020–21 was valued at GBP1.24 billion, representing 10% of overall liability for the UK government. The aerospace sector dominated support during the year, accounting for 59% of export credit liability worth GBP7.07 billion. The impact of the Covid-19 pandemic on the commercial aviation sector drove much of this support, with a total of GBP6.2 billion provided to Rolls-Royce, British Airways, and easyJet for working capital requirements to support ongoing operations.

 
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