Articles

In his recent article published by CNBC Indonesia, our defence expert, Alman Helvas Ali, highlights that Indonesia’s defence industry, which is dominated by State-Owned Enterprises (BUMN), is still struggling to reach a point of maturity where it can compete with foreign competitors. Furthermore, the domestic defence industry faces several challenges when dealing with contributing to the national and local economy, especially in terms of labour absorption and supply chain penetration. Moreover, M. Ali also argues that the lack of partnership between private and state-owned industries, standardisation, as well as ability to produce sub-systems or components of major weapon systems, become major challenges to generate economic benefits within the sector.