Webinars

During the Indonesian National Armed Forces (TNI) 76th Anniversary last October 5, President Joko Widodo relayed two essential remarks regarding the TNI modernisation plan. First, M. Widodo urged the Ministry of Defence to procure only the best defence equipment. And second the Indonesian President requested that the Ministry of Defence shift its modernisation strategy from weapons procurement to defence investment.

While Law No.16/2012 acts as the legal basis to ensure that weapons acquisition will bring economic benefit for Indonesian defence industry through Countertrade, Local Content, and Offset (CTLCO), the implementation of the law has not been quite significant. With the modernisation plan proposed by Minister of Defence Prabowo Subianto, bigger investment opportunities in Defence sector could emerge for Indonesia. However, one of the challenge for the Administration is to make sure that it could choose the best weapon system, which will not only benefit the end user, but also the domestic Defence Technological and Industrial Base (DTIB) development.