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Indonesian Strategic Industries

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Pindad large calliber ammunition

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Hydrodynamic testing facility which is owned by BPPT, Government research agency.

 
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PT Daya Radar Utama, a private owned shipbuilding company launched a 17.500 DWT tanker ship for state owned PT Pertamina in 21 June 2019.

 
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KRI Malahayati 362 get Mid Life Upgrade and Modernization in state owned shipbuilding company, PT PAL Indonesia. The ship was first bought in 1980.

 
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Indonesia space Agency (Lapan) undergo test to vehicle that can be converted into cruise missile.

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According to recent Lapan official statement (2020), they target to build rocket that capable to reach LOW (Low Earth Orbit) at 2024. LOW range from the earth is 200-300km. I dont know whether they can do it or not but in order to reach the goal there should be full support from government.

The question is how can they reach the goal if Lapan itself has admited that they cannot recruit more researcher due to budget limitation and also acknowledge that the tools and facilities that they have are already quite old and need modernization. The budget given by government is quite low for Lapan, they only get less than 1 trillion Rupiah despite the scope of research are many that include satellite, aerospace (plane/UAV), SAR radar, etc.
 
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PT SSE (surya sentra ekajaya) P2KM and P6 ATAV

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P6 ATAV
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Defense industries united in a single holding company for competitiveness
Saturday, August 29, 2020 | 13:00 WIB



Merger of PT Len Industri, PT Dirgantara Indonesia (DI), PT Pindad, and PT Dahana into a single holding company is expected to strengthen the efficiency and competitiveness of our defense industry, so that we can cover our own domestic needs. (Photo: Rayi Gigih/IO)

IO – PT Len Industri’s President Director, Zakky Gamal Yasin, stated that his company is consolidating and synchronizing with others to strengthen the competitiveness and independence of our defense industry. This consolidation involves the merging of PT Len Industri, PT Dirgantara Indonesia (DI), PT Pindad, and PT Dahana into a single holding company. Establishing this integrated defense holding company is expected to. “Len is going to lead the defense industry cluster, with PT DI, Pindad, and Dahana right under it.

We are in the process of integrating into a single defense holding company in order to advance, to become independent and more competitive, to build a reputation in the Asian region,” Zakky said in a virtual discussion hosted by the Jakarta Defense Studies (“JDS”) “The Challenges of Sixth Generation Warfare Versus the Independence of the Defense Industry” held in Jakarta on Wednesday (26/08/2020).

The holding company is established in order to strengthen our ability to supply the primary weaponry system needs of the National Army, the National Police, and other defense agencies such as the Indonesian Marine Security Agency (Badan Keamanan Laut – “Bakamla”) and the National Cyber and Crypto Agency (Badan Siber dan Sandi Nasional – “BSSN”). Zakky states that these Government defense companies are creating a Master Plan to get into the Top 50 global defense companies.

Another target that must be achieved by 2024 is to increase the local content of our national defense companies’ products to 50%. In order to achieve this reality, all defense State-Owned Companies must synergize into a single cluster. This will strengthen their joint finances and integrate their supply chain and ecosystem. “We need to get all defense ecosystems in Indonesia to cooperate, including cooperation with privately owned businesses. This is how we build the strength of our national defense industry. This is the Road Map for 2020-2024. We are initiating an advanced program, and we announce our target to spur us more into achieving it,” Zakky said.

Zakky further admits that the effort to establish a defense holding company is also meant to increase sales. This merger is also meant to prevent double investments that some defense companies do, and improve their joint ability to assess existing talents in the company and improve HR capacity. In the end, these companies will be a strong, integrated State-Owned Enterprise that supports national defense and economy. “We can’t afford to have our national defense companies needlessly fight each other, to have State-Owned and privately-owned enterprises fight over the same thing. We need to prioritize and avoid giving contracts to the same companies over and over again. Therefore, we need a workable strategic plan,” he said.

In the same discussion, PT Pindad’s Director of Technology and Development Ade Bagdja states that PT Pindad is currently producing a special tactical vehicle ordered by Minister of Defense Prabowo Subianto, the Maung. The order is for producing 500 units of this vehicle. PT Pindad is also launching the tank boat battle vehicle Antasena APC-30. The Antasena has a missile tank boat variant and 105 mm gun caliber tank boat. It is meant for the Navy, and production is expecte to start in 2021. “We are looking at various opportunities and needs in the many conditions the Maung may find itself in. We are building up our industrialization. We hope to be able to produce 500 units by the end of the year, even though with our capacity we can produce up to 1,000 units of different variants,” he said.

Meanwhile, Former General Secretary of the Ministry of Defense, Rear Admiral (Ret.) Agus Setiadji, speaks of military expenditures for items that serve as a deterrent. Military strategy is no longer a viable standard for victory in battle. Nowadays, military strategy is now more directed to the arts of intimidation, coercion, and deterrence. The apparent ability one country has to destroy another may motivate other countries to avoid direct confrontation. In other words, it affects the behavior of other countries. “We need to anticipate and avoid coercion. In order to prevent other countries from attacking ours, we use diplomacy. The ability of a power user to fight functions as a bargaining chip. This is the basis of the deterrence theory, wherein we succeed if we actually manage to avoid using our power for real,” he said. (dan)

 
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PT INKA second factory updates. This factory is intended to supply train and train coach for overseas market. It is only the first phase development, the existed location is still enough to expand the production until several times its first phase development.


PT INKA also want to enter electric bus business and has made a prototype for a trial test

 
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While state owned company like PT INKA is still testing their first electric bus prototype, Indonesia private owned company, PT MAB, has already made three different prototypes and delivered their bus to consumer in Indonesia (PT Paiton). PT MAB is owned by retired Armed Force General, Moeldoko, who is also currently serving as President Palace head.

 
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PT Pindad

Badak FSV (Fire Support vehicle) and Harimau medium tank

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