Alutsista Procurement Program Should Strengthen Technology for State Defense: President Jokowi
Date 27 Januari 2020
The Primary Weaponry Defense System (Alutsista) procurement program should strengthen Indonesia’s technology for state defense, President Joko “Jokowi” Widodo has said.
“We will discuss a new defense platform strategy focusing on strategic industries, especially Alutsista procurement policy,” President Jokowi said during a Limited Cabinet Meeting on Primary Weaponry Defense System (Alutsista) procurement program at Submarine Production Hangar of state-owned shipbuilder PT PAL Indonesia in Surabaya, East Java Province, Monday (27/1).
According to the President, policies in defense industry aim to strengthen defense-industrial platforms through several measures, including reforming defense industry ecosystem, which is related to finance and facility-sharing for state-owned defense companies, and connectivity between component industries that will support the development.
“The policy should cover reforms in supply chains and development between SOEs with private corporations and SMEs to reduce our dependence on imported goods, as well as improvement of efficiency and governance management,” the President said.
On that occasion, the President also said that PT PAL Indonesia (Persero) has not installed any manufacturing management system since 2015.
“In 2015, I instructed relevant ministers to improve the system and PT PAL received state capital injections (PMN) amounting to Rp1.5 trillion to make the changes,” President Jokowi said.
According to the President, the management and governance in a company will be obvious and noticeable, adding that the transition from product-driven to market-driven is also important.
“This is important to produce defense equipment for military and non-military purposes which aim to encourage more local purchasers,” he said.
The President further said this year’s state budget allocated for Ministry of Defense amounting to Rp127 trillion should be earmarked for defense-industries. The Government, he added, has also set a target that strategic industries must have purchasers within 15 years.
“This is expected to make the investment to become well-planned,” the President said. (AIT/EN)
Translated by: Syarifah Aisyah
Reviewed by: Muhardi
Proofread by: M. Ersan Pamungkas