Gov’t Launches State-Owned Defense Industry Holding Defend ID

President Jokowi launches the state-owned defense industry holding, Defend ID, Wednesday (04/20) in Surabaya. (Photo by: BPMI of Presidential Secretariat/ Laily Rachev)

In a bid to achieve self-sufficiency in defense industry, President Joko “Jokowi” Widodo, Wednesday (04/20), launched the state-owned defense industry holding, Defend ID, in Surabaya, East Java province.

Defend ID comprises five state-owned enterprises, namely aircraft manufacturer PT Dirgantara Indonesia, weapons manufacturer PT Pindad, communications equipment manufacturer PT LEN, shipbuilder PT PAL, and explosives maker PT Dahana.

During the launching, President Jokowi said that Defend ID is needed to boost national defense industry and to ensure that they can compete and be able to carry out the purpose of defense industry namely protecting the sovereignty of Indonesia.

“We must achieve self-sufficiency in defense industry, together. It cannot be done alone or partially. We must strengthen the industry, develop the ecosystem and advance it,” he said.

He added that the holding is a long-awaited project which aimed at consolidating national defense industry and is expected to be the on the list of the world’s top 50 defense companies.

The Head of State also reminded Defend ID to increase local content use and lower export of defense and security equipment (alpalhankam).

“I call for a gradual increase in the level of local content of defense products from 41 percent as of today to finally reach 100 percent, gradually. We must be swift, agile, and sharp to seek opportunity, proactive in grasping the opportunity so we can be a part of global supply chain. The goal is really important but we must still prioritize to meet the demand of national market,” he firmly said.

On that occasion, the President underscored that the launching is the first step in transforming national defense industry, developing a strong and modern defense industry ecosystem, dominating the national market, and increasing competitiveness of the industry in international market.

To achieve self-sufficiency in defense industry, the holding must master the dual-use technology in components manufacturing, establish global partnership with various sides in transfer of technology, and make innovation in human resources, raw materials, as well as in business and operational processes.

For the record, a number of agreements were signed in the launching, among others, procurement of 13 units of Ground Control Intercept (GCI) radar and its supporting equipment between PT LEN Industri and Ministry of Defense, procurement of small caliber ammunition between PT Pindad and Ministry of Defense, Maintenance, Repair, and Operations (MRO) agreement on navy warships between PT PAL Indonesia and Ministry of Defense, Heads of Agreement (HoA) on defense electronics and technology between PT Len Industry and Thales International SAS, France, and Memorandum of Understanding (MoU) on joint production of Armoured Amphibious Assault Vehicle between PT Pindad and FNSS Savunma Sistemleri, Turkey.

In addition, another cooperation was inked between Ministry of Defense and Ministry of State-Owned Enterprises which aimed to increase roles of state-owned enterprises in meeting the domestic needs of defense and security equipment and increase level of local content of the equipment. (TGH/UN) (RAS/MMB)