Indonesian Strategic Industries
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Minggu, 27 Oktober 2019 23:36
PT Barata Indonesia exported components of power plant to the UK for 36 times.
PT Barata Indonesia (SOE) once again exported components of power plant for 36 times to the UK.
That is in the form of components of the Condenser and LP Outer Casing power plants.
The procession of the export release of the power plant components was attended by officials of the Republic of Indonesia Ministry of Industry, Harjanto, Director General of the Metal Machinery for Transportation and Electronics Equipment and Zakiyudin, Director of the Machinery Industry and Agricultural Machine Tools.
Meanwhile, the Ministry of SOE's RI represented by Heri Purnomo, Assistant Deputy for Strategic and Media Industry Mining, Ministry of SOE's in the Turbine Component Plant of the PT Barata Indonesia (Persero) Turbine Components Division, Cilegon, Thursday (10/24).
It is planned that the two power plant products will be used at the Keadby 2 Power Station power plant which has a capacity of 840 MW.
The process of working on the two components of the power plant has been ongoing since the end of December 2018 and takes 20,000 working hours.
President Director of Barata Indonesia Oksarlidady Arifin said that the consistency of Barata Indonesia in exporting overseas plant components proved that domestic products were also able to compete with foreign products and were of equal quality.
"As a state-owned company, I hope that Barata Indonesia can continue to increase exports of its flagship products. In addition to increasing the country's foreign exchange, it will also strengthen the role of the country's local industry," said Dady, Oksarlidady Arifin's close nickname.
In addition to exporting to the United Kingdom, this week Barata Indonesia also exports to Japan, the Kamisu Biomass (1 x 50 MW) Power Plant and for the Hsinta Power Plant in Taiwan.
Meanwhile at the end of October 2019, Barata Indonesia will also export condensers to Dubai, UAE.
Thus the company has exported power plant components to various parts of the world for Condenser & LP Outer Casing (Brazil, Argentina, Russia & Pakistan), Blade Ring Components (Panama, Argentina, Brazil & Pakistan), Inner Casting (Bangladesh & Australia) as well as Combustion Chamber (Taiwan).
https://surabaya.tribunnews.com/201...i-ekspor-komponen-pembangkit-listrik-batch-36
PT Barata Indonesia exported components of power plant to the UK for 36 times.
PT Barata Indonesia (SOE) once again exported components of power plant for 36 times to the UK.
That is in the form of components of the Condenser and LP Outer Casing power plants.
The procession of the export release of the power plant components was attended by officials of the Republic of Indonesia Ministry of Industry, Harjanto, Director General of the Metal Machinery for Transportation and Electronics Equipment and Zakiyudin, Director of the Machinery Industry and Agricultural Machine Tools.
Meanwhile, the Ministry of SOE's RI represented by Heri Purnomo, Assistant Deputy for Strategic and Media Industry Mining, Ministry of SOE's in the Turbine Component Plant of the PT Barata Indonesia (Persero) Turbine Components Division, Cilegon, Thursday (10/24).
It is planned that the two power plant products will be used at the Keadby 2 Power Station power plant which has a capacity of 840 MW.
The process of working on the two components of the power plant has been ongoing since the end of December 2018 and takes 20,000 working hours.
President Director of Barata Indonesia Oksarlidady Arifin said that the consistency of Barata Indonesia in exporting overseas plant components proved that domestic products were also able to compete with foreign products and were of equal quality.
"As a state-owned company, I hope that Barata Indonesia can continue to increase exports of its flagship products. In addition to increasing the country's foreign exchange, it will also strengthen the role of the country's local industry," said Dady, Oksarlidady Arifin's close nickname.
In addition to exporting to the United Kingdom, this week Barata Indonesia also exports to Japan, the Kamisu Biomass (1 x 50 MW) Power Plant and for the Hsinta Power Plant in Taiwan.
Meanwhile at the end of October 2019, Barata Indonesia will also export condensers to Dubai, UAE.
Thus the company has exported power plant components to various parts of the world for Condenser & LP Outer Casing (Brazil, Argentina, Russia & Pakistan), Blade Ring Components (Panama, Argentina, Brazil & Pakistan), Inner Casting (Bangladesh & Australia) as well as Combustion Chamber (Taiwan).
https://surabaya.tribunnews.com/201...i-ekspor-komponen-pembangkit-listrik-batch-36
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Indos
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New Heavy Machining Center Pushes Barata Indonesia into a Global Scale Player
Rina Anggraeni
Rabu, 11 September 2019 - 22:11 WIB
JAKARTA - Minister of State-Owned Enterprises (BUMN) Rini M. Soemarno encouraged SOEs to continue to increase the expansion and capacity of business ventures in order to encourage the growth of company performance. This was revealed by Minister Rini when inaugurating the new Workshop of Heavy Machining Center (HMC) owned by PT Barata Indonesia (Persero) as well as witnessing the signing of the synergy cooperation of 10 SOEs that took place at the West PT Headquarters in Gresik, East Java.
In the construction of the HMC workshop, Barata Indonesia took three state-owned companies namely PT Boma Bisma Indra (Persero) as a contractor, PT Krakatau Steel (Persero) Tbk as a steel supplier and PT Len Industri (Persero) to work on a rooftop PLTS with a capacity of 500 kWp.
Minister Rini revealed, the Barata Indonesia's Heavy Machine Center workshop was a form of synergy between SOEs to support the progress of the national industry. The existence of this new workshop will eventually encourage the company to become a producer in the local and global markets.
"I welcome the construction of this new workshop and hope to support the company's performance to continue to grow. My appreciation also goes to PT Barata Indonesia (Persero), which since 2015 has experienced growth and posted operating profit after a loss in previous years. The export performance also increased up to 225% in 2018, "said Minister Rini in Jakarta, Wednesday (11/09/2019).
Meanwhile, President Director of Barata Indonesia Oksarlidady Arifin said that the Heavy Machining Center workshop was needed to support the increasing needs along with the company's development. The HMC workshop will be used to increase the production capacity of Barata Indonesia, including increasing the production of balance of plants for power generation products.
The workshop, which was built with the State Capital Participation Fund (PMN), is also equipped with CNC bending machine facilities for steel material with a thickness of 12 milli meters with the largest capacity in Indonesia which is expected to be used together with PT PAL Indonesia (Persero) for submarine fabrication.
In addition, the HMC workshop will also be used for the fabrication and assembly areas of high-volume construction products, such as Pressure Vessels, Renewable Energy Components (Wind Power), Bullet Tanks, Submarine Components / Body, Port Cranes, Kilns, and others. "Our new production line, which is the Roda Wheel will also be produced in this HMC workshop in stages, which we will start at the end of 2019," he said.
With the HMC, Barata Indonesia became a global scale manufacturing company and continued active participation in domestic infrastructure development. The inauguration of the HMC Workshop will also add to Barata Indonesia's export performance.
With this new facility, the export value of Barata Indonesia is targeted to increase 100% from the total export value in 2018 which reached Rp280 billion. In the future the HMC Workshop is also predicted to increase the company's production capacity by 20 thousand tons per year.
At the same event a cooperation agreement was signed involving 10 SOE synergies, namely PT Pindad and PT BBI for excavators and multipurpose tractors, PT KAI and PT INKA for Railway Wheel, PT Krakatau Steel for the supply of steel products, PT LEN Industri for Solar Panel , PT INUKI for Nuclear Industry, PT Dahana for Research and Application Development of Energetic Material Products, PT BGR for logistics and management of non-productive assets, PT Pesonna Indonesia Jaya (PT Pegadaian Subsidiaries) for managing non-productive assets.
"Synergy like this that I continue to encourage where SOEs must be able to help each other. We hope that SOEs that are already involved can immediately follow up on the agreement and continue to be committed to developing machines with the latest environmentally friendly technology, and of course to be able to meet all the requirements and certifications required in accordance with the joint agreement, "he said
For information, the Heavy Machining Center Unit only began operating this year and is expected to produce components of the power plant balance plant, high-volume construction components (kilns, heat exchangers, submarine bodies, spherical tanks, bullet tanks, etc.), and train wheels with a production capacity of 20,000 tons / year.
(acc)
https://ekbis.sindonews.com/read/14...onesia-jadi-pemain-berskala-global-1568207496
Rina Anggraeni
Rabu, 11 September 2019 - 22:11 WIB
JAKARTA - Minister of State-Owned Enterprises (BUMN) Rini M. Soemarno encouraged SOEs to continue to increase the expansion and capacity of business ventures in order to encourage the growth of company performance. This was revealed by Minister Rini when inaugurating the new Workshop of Heavy Machining Center (HMC) owned by PT Barata Indonesia (Persero) as well as witnessing the signing of the synergy cooperation of 10 SOEs that took place at the West PT Headquarters in Gresik, East Java.
In the construction of the HMC workshop, Barata Indonesia took three state-owned companies namely PT Boma Bisma Indra (Persero) as a contractor, PT Krakatau Steel (Persero) Tbk as a steel supplier and PT Len Industri (Persero) to work on a rooftop PLTS with a capacity of 500 kWp.
Minister Rini revealed, the Barata Indonesia's Heavy Machine Center workshop was a form of synergy between SOEs to support the progress of the national industry. The existence of this new workshop will eventually encourage the company to become a producer in the local and global markets.
"I welcome the construction of this new workshop and hope to support the company's performance to continue to grow. My appreciation also goes to PT Barata Indonesia (Persero), which since 2015 has experienced growth and posted operating profit after a loss in previous years. The export performance also increased up to 225% in 2018, "said Minister Rini in Jakarta, Wednesday (11/09/2019).
Meanwhile, President Director of Barata Indonesia Oksarlidady Arifin said that the Heavy Machining Center workshop was needed to support the increasing needs along with the company's development. The HMC workshop will be used to increase the production capacity of Barata Indonesia, including increasing the production of balance of plants for power generation products.
The workshop, which was built with the State Capital Participation Fund (PMN), is also equipped with CNC bending machine facilities for steel material with a thickness of 12 milli meters with the largest capacity in Indonesia which is expected to be used together with PT PAL Indonesia (Persero) for submarine fabrication.
In addition, the HMC workshop will also be used for the fabrication and assembly areas of high-volume construction products, such as Pressure Vessels, Renewable Energy Components (Wind Power), Bullet Tanks, Submarine Components / Body, Port Cranes, Kilns, and others. "Our new production line, which is the Roda Wheel will also be produced in this HMC workshop in stages, which we will start at the end of 2019," he said.
With the HMC, Barata Indonesia became a global scale manufacturing company and continued active participation in domestic infrastructure development. The inauguration of the HMC Workshop will also add to Barata Indonesia's export performance.
With this new facility, the export value of Barata Indonesia is targeted to increase 100% from the total export value in 2018 which reached Rp280 billion. In the future the HMC Workshop is also predicted to increase the company's production capacity by 20 thousand tons per year.
At the same event a cooperation agreement was signed involving 10 SOE synergies, namely PT Pindad and PT BBI for excavators and multipurpose tractors, PT KAI and PT INKA for Railway Wheel, PT Krakatau Steel for the supply of steel products, PT LEN Industri for Solar Panel , PT INUKI for Nuclear Industry, PT Dahana for Research and Application Development of Energetic Material Products, PT BGR for logistics and management of non-productive assets, PT Pesonna Indonesia Jaya (PT Pegadaian Subsidiaries) for managing non-productive assets.
"Synergy like this that I continue to encourage where SOEs must be able to help each other. We hope that SOEs that are already involved can immediately follow up on the agreement and continue to be committed to developing machines with the latest environmentally friendly technology, and of course to be able to meet all the requirements and certifications required in accordance with the joint agreement, "he said
For information, the Heavy Machining Center Unit only began operating this year and is expected to produce components of the power plant balance plant, high-volume construction components (kilns, heat exchangers, submarine bodies, spherical tanks, bullet tanks, etc.), and train wheels with a production capacity of 20,000 tons / year.
(acc)
https://ekbis.sindonews.com/read/14...onesia-jadi-pemain-berskala-global-1568207496
Indos
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Made in Boma Bisma Indra Diesel Engine Will Be Absorbed by 9 State Own Enterprises
PT Boma Bisma Indra (BBI) launched its first diesel engine product in collaboration with Doosan Infractor which would later be absorbed by the domestic market, especially SOEs.
Peni Widarti
21 Agustus 2019 | 22:18 WIB
Bisnis.com, SURABAYA - PT Boma Bisma Indra (BBI) launched its first diesel engine product in collaboration with Doosan Infractor which will later be absorbed by the domestic market, especially SOEs.
In launching the product, at the same time a cooperation agreement was signed between BBI and 9 state owned enterprises that used diesel engines including PT Industri Kapal Indonesia, PT Dok and Kodja Bahar Shipping, PT Dok and Shipping Surabaya, PT PAL Indonesia, PT Kereta Api Indonesia, PT Pindad , PT Barata Indonesia, PT Industri Kereta Api and PT Pelayaran Nasional Indonesia.
SOE Minister Rini Soemarno said the results of the BBI-Doosan product were expected to be able to maximize the needs of national diesel engines in the context of import substitution which also strengthened the machinery industry.
"Synergy of SOEs like this that I continue to encourage and hopefully BBI can develop machines with the latest technology which certainly meets all the requirements and certifications needed, so that our products can become big players," he said in a press release on Wednesday (8/21/2019) .
Also read: Latest News Regarding Manufacturing
Rini explained that BBI and Doosan have worked together to increase the capacity of national diesel and gas engine products with a capacity of 4,000 units / year. Both agreed to develop the engine business from the initial step to finalizing 100% of diesel engines that were designed by transfer for technology (TFT).
"This cooperation is a commitment of both parties to meet the needs of the national diesel engine," he added.
BBI President Director Yoyok Hadi Satriyono added that the moment the diesel engine production would become a milestone for BBI in the construction of the National Manufacturing Engine.
"We will optimize all competencies to strengthen the company's positioning in the national engine business, especially diesel engines and gas engines in line with BBI's vision to support local content programs," he added.
Yoyok added that currently the product application uses Biodiesel B30. In the future, B60 products and B100 products will be developed in 2021.
https://surabaya.bisnis.com/read/20...-buatan-boma-bisma-indra-bakal-diserap-9-bumn
PT Boma Bisma Indra (BBI) launched its first diesel engine product in collaboration with Doosan Infractor which would later be absorbed by the domestic market, especially SOEs.
Peni Widarti
21 Agustus 2019 | 22:18 WIB
Bisnis.com, SURABAYA - PT Boma Bisma Indra (BBI) launched its first diesel engine product in collaboration with Doosan Infractor which will later be absorbed by the domestic market, especially SOEs.
In launching the product, at the same time a cooperation agreement was signed between BBI and 9 state owned enterprises that used diesel engines including PT Industri Kapal Indonesia, PT Dok and Kodja Bahar Shipping, PT Dok and Shipping Surabaya, PT PAL Indonesia, PT Kereta Api Indonesia, PT Pindad , PT Barata Indonesia, PT Industri Kereta Api and PT Pelayaran Nasional Indonesia.
SOE Minister Rini Soemarno said the results of the BBI-Doosan product were expected to be able to maximize the needs of national diesel engines in the context of import substitution which also strengthened the machinery industry.
"Synergy of SOEs like this that I continue to encourage and hopefully BBI can develop machines with the latest technology which certainly meets all the requirements and certifications needed, so that our products can become big players," he said in a press release on Wednesday (8/21/2019) .
Also read: Latest News Regarding Manufacturing
Rini explained that BBI and Doosan have worked together to increase the capacity of national diesel and gas engine products with a capacity of 4,000 units / year. Both agreed to develop the engine business from the initial step to finalizing 100% of diesel engines that were designed by transfer for technology (TFT).
"This cooperation is a commitment of both parties to meet the needs of the national diesel engine," he added.
BBI President Director Yoyok Hadi Satriyono added that the moment the diesel engine production would become a milestone for BBI in the construction of the National Manufacturing Engine.
"We will optimize all competencies to strengthen the company's positioning in the national engine business, especially diesel engines and gas engines in line with BBI's vision to support local content programs," he added.
Yoyok added that currently the product application uses Biodiesel B30. In the future, B60 products and B100 products will be developed in 2021.
https://surabaya.bisnis.com/read/20...-buatan-boma-bisma-indra-bakal-diserap-9-bumn
Last edited:
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1.000 Motor Listrik Gesits Siap Dikirim ke Tangan Konsumen
Rizki Pratama - detikOto
Foto: Ari Saputra
Jakarta - Pada ajang Indonesia International Motor Show 2019 lalu Gesits mengatakan telah membuka keran pemesanannya. Namun sampai saat ini belum terdengar kabar pengiriman kepada konsumennya.
Saat dimintai konfirmasi kapan pengiriman akan dilakukan, pihak Gesits menjanjikan bulan Desember sebagai tenggat waktunya.
Baca juga: Anies Ikut Konvoi Kendaraan Listrik di Jakarta Naik Gesits
"Itu yang akan kami distribusikan pada awal Desember. yang Desember untuk sejak IIMS, secara online," ujar Procurement Manager Gesits, M Natsir saat ditemui di Kebayoran Baru, Jakarta Selatan, Selasa (26/11/2019).
Pada bulan tersebut dikatakan ada 1.000 unit motor yang akan dikirimkan setelah pemesanan. Total angka tersebut termasuk pemesanan ritel dan fleet.
Motor listrik Gesits Foto: Ari Saputra
"Ritel dapat fleet juga kami kasih. Secara bersamaan pada Desember kami distribusikan memang acara seremonial B2B yang kami serahkan tapi kita juga bikin acara seremonial ritel," ungkap Natsir.
Baca juga: Tes Motor Listrik Gesits, Kena Hujan dan Lewati Tanjakan Curam
Ia menjelaskan perkara lambatnya distribusi ada pada masalah distribusi. Sementara itu dari kemampuan produksi ia mengaku tak ada kendala.
"Ini masalah timing saja, logistik, distribusi, kita pengaturan lagi. Kalau itu tidak ada masalah, dari pihak WIMA (Wijaya Karya Industri Manufaktur) nggak ada masalah. Ini masalah distribusi saja, kemudian kami ingin capture lagi data-data di masyarakat, yakin nggak," terangnya.
Sementara itu ketersediaan unit Gesits kini ada 220 unit. Jumlah tersebut akan dimasukkan ke dalam pengiriman bulan Desember nantinya.
"(Stok) per Senin kemarin 220 unit di luar yang berceceran dipinjem media. Itu yang akan kami distribusikan pada awal Desember," tutupnya.
https://m.detik.com/oto/motor/d-479...23.1474608116.1574074689-898943160.1569942884
Rizki Pratama - detikOto
Jakarta - Pada ajang Indonesia International Motor Show 2019 lalu Gesits mengatakan telah membuka keran pemesanannya. Namun sampai saat ini belum terdengar kabar pengiriman kepada konsumennya.
Saat dimintai konfirmasi kapan pengiriman akan dilakukan, pihak Gesits menjanjikan bulan Desember sebagai tenggat waktunya.
Baca juga: Anies Ikut Konvoi Kendaraan Listrik di Jakarta Naik Gesits
"Itu yang akan kami distribusikan pada awal Desember. yang Desember untuk sejak IIMS, secara online," ujar Procurement Manager Gesits, M Natsir saat ditemui di Kebayoran Baru, Jakarta Selatan, Selasa (26/11/2019).
Pada bulan tersebut dikatakan ada 1.000 unit motor yang akan dikirimkan setelah pemesanan. Total angka tersebut termasuk pemesanan ritel dan fleet.
"Ritel dapat fleet juga kami kasih. Secara bersamaan pada Desember kami distribusikan memang acara seremonial B2B yang kami serahkan tapi kita juga bikin acara seremonial ritel," ungkap Natsir.
Baca juga: Tes Motor Listrik Gesits, Kena Hujan dan Lewati Tanjakan Curam
Ia menjelaskan perkara lambatnya distribusi ada pada masalah distribusi. Sementara itu dari kemampuan produksi ia mengaku tak ada kendala.
"Ini masalah timing saja, logistik, distribusi, kita pengaturan lagi. Kalau itu tidak ada masalah, dari pihak WIMA (Wijaya Karya Industri Manufaktur) nggak ada masalah. Ini masalah distribusi saja, kemudian kami ingin capture lagi data-data di masyarakat, yakin nggak," terangnya.
Sementara itu ketersediaan unit Gesits kini ada 220 unit. Jumlah tersebut akan dimasukkan ke dalam pengiriman bulan Desember nantinya.
"(Stok) per Senin kemarin 220 unit di luar yang berceceran dipinjem media. Itu yang akan kami distribusikan pada awal Desember," tutupnya.
https://m.detik.com/oto/motor/d-479...23.1474608116.1574074689-898943160.1569942884
Indos
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There is 20 patrol combat ships had been built since 2015 to 2019 from size of 28 to 40 meter class, and actually this one is the 37-38 ships built in Batam
CV bandar abadi made lift floating dock dor Kodja Bahari Shipyard
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It’s high time for Prabowo to boost national defense industry
At your command: Defense Minister Prabowo Subianto salutes journalists before his first working meeting as minister with members of House of Representatives Commission I, which oversees defense, foreign affairs, information and intelligence, at the House complex in Senayan, Central Jakarta, on Monday. In the meeting, the House and the Defense Ministry discussed bugetary allocations and the ministry's plans for 2020. (JP/Dhoni Setiawan)
During his first meeting with lawmakers on Monday, Defense Minister Prabowo Subianto offered a total or universal war strategy as the best defense in the face of a more technologically advanced adversary. Given the disparity in military power between Indonesia and advanced nations, Prabowo believes total war involving the masses is an acceptable option when the Republic of Indonesia is at war.
Previously, Prabowo, who decried the weakness of Indonesian defense during the 2019 presidential election campaign last April, had spoken during his first public appearance at Indonesian Defense University on the need to shift the defense paradigm from one centered on spending to one centered on investment.
Defense spending is usually frowned upon by economists and developmentalists as it uses public funds that could be used elsewhere for economic benefits, such as for the construction of roads, bridges and power plants, hence the guns versus butter dichotomy.
However, the defense-as-investment approach tries to change the model by making it a guns and butter partnership in which military spending provides a boost to the economy. This would be achieved through the development of the defense industry, including the mass production of primary weapons systems and defense and security equipment.
The guns and butter approach is exactly what President Joko “Jokowi” Widodo had in mind when he asked the national defense establishment to curb imports.
Procuring primary and other defense equipment from the domestic defense industry means job creation and taxes from direct activities, not to mention multiplier effects generated from related sources, such as suppliers of parts and components for weaponry, and non-related sources, such as housing and food for workers in the defense sector.
There is a striking similarity between the second-term presidential administrations of Jokowi and Susilo Bambang Yudhoyono. Jokowi started his second term by paying attention to empowering the national defense industry, which he entrusted to Deputy Defense Minister Wahyu Sakti Trenggono, treasurer of Jokowi’s election campaign team and businessman in the base transceiver station industry, to further develop the defense industry.
A decade ago, Yudhoyono started his second term by embarking on an ambitious journey to revitalize the local defense industry. The revitalization effort was spearheaded by his defense minister Purnomo Yusgiantoro and Purnomo’s deputy Sjafrie Sjamsoeddin, who organized a defense industry workshop in December 2009.
The workshop led to the creation of the Defense Industry Policy Committee (KKIP) in April 2010 and the passing of Law No. 16/2012 on the defense industry. The law stipulates that primary weapons may only be imported if local industries are unable to produce them. However, the importation must follow an offset mechanism that may include countertrade, local content and the transfer of technology.
It was also Yudhoyono who rolled out a grand strategy to modernize the Indonesian Military (TNI) through the Minimum Essential Force (MEF), which was envisioned as being achieved in three five-year strategic plans (Renstra).
Jokowi’s second term ends in 2024, coinciding with the third MEF Renstra, in which the TNI is projected to have an ideal force posture and become a respected force at both the regional and international levels.
Indonesia already has the capability, for example, to produce assets that are needed to patrol both the country’s territorial waters and its exclusive economic zones. This includes patrol boats and maritime patrol aircraft. Indonesia can also produce its own landing ship tanks, landing platform docks and transportation aircraft, which can be useful in times of natural disaster and other humanitarian crises.
The KKIP designated in 2014 seven weapons systems that Indonesia must master: medium tanks, jet fighters, submarines, propellants, missiles, radar and communications devices. Some of them have shown good results, such as the Tiger medium tank codeveloped with Turkey and three Changbogo-class submarines, built under the supervision of South Korea.
Meanwhile, other programs still must be pursued further, such the IFX-KFX joint jet fighter program developed in cooperation with South Korea, which Prabowo said he would study further.
If we consider that the Defense Ministry manages a budget of Rp 127.4 trillion (US$9 billion), the largest among ministries and state institutions, there are plenty of opportunities for local defense companies, even if the procurement budget is roughly only some 30 percent of the total budget.
Data at the ministry’s Defense Potential Directorate General show there are eight state-owned enterprises and 100 private companies that have been designated as local defense companies. In total, their assets are valued at Rp 17.3 trillion with revenue reaching Rp 11 trillion.
Most Indonesian defense companies are still working under a dual-use concept, meaning they also produce civilian goods. In fact, some 70 percent of their products are civilian and only 15 percent are military goods. The remaining 15 percent are for exports.
The national defense industry has absorbed about 15 percent of the acquisition budget.
Both Prabowo and Trenggono stand a great chance of maximizing the local defense industry, both with state-owned companies and private ones, to reach the MEF goals by 2024.
https://www.thejakartapost.com/acad...abowo-to-boost-national-defense-industry.html
- Novan
The Jakarta Post
At your command: Defense Minister Prabowo Subianto salutes journalists before his first working meeting as minister with members of House of Representatives Commission I, which oversees defense, foreign affairs, information and intelligence, at the House complex in Senayan, Central Jakarta, on Monday. In the meeting, the House and the Defense Ministry discussed bugetary allocations and the ministry's plans for 2020. (JP/Dhoni Setiawan)
During his first meeting with lawmakers on Monday, Defense Minister Prabowo Subianto offered a total or universal war strategy as the best defense in the face of a more technologically advanced adversary. Given the disparity in military power between Indonesia and advanced nations, Prabowo believes total war involving the masses is an acceptable option when the Republic of Indonesia is at war.
Previously, Prabowo, who decried the weakness of Indonesian defense during the 2019 presidential election campaign last April, had spoken during his first public appearance at Indonesian Defense University on the need to shift the defense paradigm from one centered on spending to one centered on investment.
Defense spending is usually frowned upon by economists and developmentalists as it uses public funds that could be used elsewhere for economic benefits, such as for the construction of roads, bridges and power plants, hence the guns versus butter dichotomy.
However, the defense-as-investment approach tries to change the model by making it a guns and butter partnership in which military spending provides a boost to the economy. This would be achieved through the development of the defense industry, including the mass production of primary weapons systems and defense and security equipment.
The guns and butter approach is exactly what President Joko “Jokowi” Widodo had in mind when he asked the national defense establishment to curb imports.
Procuring primary and other defense equipment from the domestic defense industry means job creation and taxes from direct activities, not to mention multiplier effects generated from related sources, such as suppliers of parts and components for weaponry, and non-related sources, such as housing and food for workers in the defense sector.
There is a striking similarity between the second-term presidential administrations of Jokowi and Susilo Bambang Yudhoyono. Jokowi started his second term by paying attention to empowering the national defense industry, which he entrusted to Deputy Defense Minister Wahyu Sakti Trenggono, treasurer of Jokowi’s election campaign team and businessman in the base transceiver station industry, to further develop the defense industry.
A decade ago, Yudhoyono started his second term by embarking on an ambitious journey to revitalize the local defense industry. The revitalization effort was spearheaded by his defense minister Purnomo Yusgiantoro and Purnomo’s deputy Sjafrie Sjamsoeddin, who organized a defense industry workshop in December 2009.
The workshop led to the creation of the Defense Industry Policy Committee (KKIP) in April 2010 and the passing of Law No. 16/2012 on the defense industry. The law stipulates that primary weapons may only be imported if local industries are unable to produce them. However, the importation must follow an offset mechanism that may include countertrade, local content and the transfer of technology.
It was also Yudhoyono who rolled out a grand strategy to modernize the Indonesian Military (TNI) through the Minimum Essential Force (MEF), which was envisioned as being achieved in three five-year strategic plans (Renstra).
Jokowi’s second term ends in 2024, coinciding with the third MEF Renstra, in which the TNI is projected to have an ideal force posture and become a respected force at both the regional and international levels.
Indonesia already has the capability, for example, to produce assets that are needed to patrol both the country’s territorial waters and its exclusive economic zones. This includes patrol boats and maritime patrol aircraft. Indonesia can also produce its own landing ship tanks, landing platform docks and transportation aircraft, which can be useful in times of natural disaster and other humanitarian crises.
The KKIP designated in 2014 seven weapons systems that Indonesia must master: medium tanks, jet fighters, submarines, propellants, missiles, radar and communications devices. Some of them have shown good results, such as the Tiger medium tank codeveloped with Turkey and three Changbogo-class submarines, built under the supervision of South Korea.
Meanwhile, other programs still must be pursued further, such the IFX-KFX joint jet fighter program developed in cooperation with South Korea, which Prabowo said he would study further.
If we consider that the Defense Ministry manages a budget of Rp 127.4 trillion (US$9 billion), the largest among ministries and state institutions, there are plenty of opportunities for local defense companies, even if the procurement budget is roughly only some 30 percent of the total budget.
Data at the ministry’s Defense Potential Directorate General show there are eight state-owned enterprises and 100 private companies that have been designated as local defense companies. In total, their assets are valued at Rp 17.3 trillion with revenue reaching Rp 11 trillion.
Most Indonesian defense companies are still working under a dual-use concept, meaning they also produce civilian goods. In fact, some 70 percent of their products are civilian and only 15 percent are military goods. The remaining 15 percent are for exports.
The national defense industry has absorbed about 15 percent of the acquisition budget.
Both Prabowo and Trenggono stand a great chance of maximizing the local defense industry, both with state-owned companies and private ones, to reach the MEF goals by 2024.
https://www.thejakartapost.com/acad...abowo-to-boost-national-defense-industry.html
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