Saturday, July 11, 2009

Revival of Indonesian Defence Industry

Today I just read about the handover of new pansers from PINDAD to TNI ( Indonesian Armed Forces ) . SBY,Indonesian President came directly to witness this handover ceremony. This is a part of order of 154 pansers worth more than 1.127 trilliun Rupiahs.

Worth to know that Indonesia has been developing intensively defence industry since Soeharto’s time under the direction of Habibie,the long time Research and Technology Minister. Under his supervision Indonesia has PAL ( ship building industry ), PINDAD ( related with the army equipment ),IPTN / PT Dirgantara Indonesia ( aircraft ) with quite expansive projects. CN 250 was one of the major achievement of IPTN in the past albeit less success commercially overseas.

Since Soeharto’s toppled down not much news and intensivity anymore towards this 3 strategic defence companies. 2 reasons for this I believe because the economic basically colapsed so state coffers not enough to fund all this expensive but not urgent things ( need to compare it with food,health,education for people ) and the next because the new government then forced to focus solving other urgent problems first such as corruption,security issues and etc.

After a decade Indonesia has basicallly improved a lot so that state coffers recovering and new government then also has solved multiple problems ( Poso,Aceh,education,food and etc. ). Now we can see there’s shift to take care more of this defence companies again after “a bit neglected” for couple of years. Having own defence industry is very strategic as Indonesia,4th populous country in the world need to be self sufficient after experiences in the past taught that buying it from western countries might bring troubles if embargoes imposed for human right or political reasons. Second strategic thing from having own good defence industry is exporting it to other countries. Like it or not Russia still getting a lot of money by selling weapons,aircraft,submarine and etc. It helped them a lot during the economic woes early 90 after the collapses of Soviet Union. Even China now exporting its weapons and etc eventhough it’s more for political reason and increasing its influence / power.

Indonesia Government has shown its support as well to domestic defence industry.Big orders for PINDAD is one of the way to help strategic defence companies. Recently there has been talk as well between BP Migas and PT DI on the cooperation to use more domestic aircrafts and helicopters for the oil and gas industry. I worked in the offshore before so clearly understand that airplane and helicopter really needed for both personnels and equipments transportation to the remote rig site ( offshore or onshore ). Imagine sending people every week to remote location in Natuna. Imagine as well the need to fly in personnels from Jakarta or Surabaya all the way to Papua.Indonesia Ministry of Defence ordered 2 unit of corvets ( so called Program Korvet Nasional ) from PT PAL. It is going to cost around 8 trilliun Rupiahs to finish this 2 units.

Final word from me : Congratulations to PINDAD,PAL and PT DI. Hopefully can be more successful in the future.

No comments: