Advancing the Defense Industry

KOMPAS/HERU SRI KUMORO

Defile of the main weapons system equipment (defense equipment) of the TNI on Jalan Medan Merdeka Utara, Jakarta, on Wednesday (5/10/2022).

Innovations in the defense system, including the main tools of the weapon system or defense equipment, continue to progress thanks to the use of the new technology in the Industrial Revolution 4.0 era.

In this world, there are new threats and new wars.

Speaking at his remark at the opening of the Indo Defense 2022 defense exhibition in Jakarta on Wednesday (2/11/2022), President Joko “Jokowi” Widodo said that Indonesia should adopt as many new technologies as possible in the defense sector. With the latest trend around the world showing the defense budgets of a number of countries increasing dramatically, the President underlined the need to cooperate with the defense industries of various countries.

Cooperation in production can be seen in the manufacturing of submarines between Indonesia and South Korea.

Cooperation in the defense sector can be carried out in many aspects, ranging from simply developing supplier and buyer relationships to cooperation in production and technology transfer. In the supplier and buyer category, for example, France has agreed to sell Rafale fighter aircraft to Indonesia. Cooperation in production can be seen in the manufacturing of submarines between Indonesia and South Korea.

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Cooperation can certainly cover all aspects that can help strengthen Indonesia's defense. For the development of the domestic defense industry, we already have Law No. 16 of 2012.

We believe that PT Dirgantara Indonesia, PT PAL and PT Pindad will continue to take the necessary steps to advance the defense industry, even though the most monumental achievement has only been seen in the ability to build Chang Bogo class submarines by PAL.

KOMPAS/BAHANA PATRIA GUPTA

Warship Division area at PT PAL Indonesia (Persero), Surabaya City, East Java, on Thursday (29/9/2022).

We realize that building cooperation in the defense industry is not easy. Many things have to be harmonized with the parties that work together with us to prevent differences such as the dispute in the development of the KFX/IFX fighter aircraft with South Korea.

Because the most advanced technology is available, defense equipment must be made as modern as possible. If not, we can be easily beaten by opponents with a more advanced weapon system.

The problem is that usually the technology used in the production of defense equipment with sensitive technology will not be released by the producing countries, which have spent billions of dollars on the research and design for its development. The United States, for example, will not sell its F-22 Raptor air superiority jet, even to its closest allies. On this jet, there is top secret technology that can make the fighter aircraft invisible to radar.

A state-of-the-art jet fighter with a typical price of US$100 million can be worth Rp 1.5 trillion.

Another thing that can hamper Indonesia in developing the defense industry is the weak rupiah exchange against the US dollar. With the current exchange rate, technology or defense equipment are very expensive. A state-of-the-art jet fighter with a typical price of US$100 million can be worth Rp 1.5 trillion. For a country that is still struggling with improving people's welfare, the dilemma of "sword versus plow" will continue to exist.

The last thing that should be adopted is to purely carry out the defense equipment trade to a government to government (G2G) model, a deal between governments without intermediaries. It also needs to be supported by the spirit of prioritizing our own products that are proven to be reliable. Without such a consideration and awareness, it is difficult for the defense industry to progress.

(This article was translated by Hendarsyah Tarmizi)