Webinars

The COVID-19 pandemic has affected many economic sectors in Indonesia and increased the number of unemployment, including in the defence sector. The government has formulated several measures to decrease the number of unemployment, including doing its maximum to pass and ratify the Job Creation Law (UU Cipta Kerja), which states that the private sector actors can become defence industry lead integrators. Such a strategy is expected to boost productivity and competitiveness, while also supporting the implementation of the Defence Industry Law (UU No.16/2012).

While the Ministry of Defence continues to show its commitment in modernising the National Armed Forces (TNI), weapons acquisition programmes are expected to also benefit the local companies through offset and/or Transfer of Technology (ToT). Recently, the government inaugurated Indonesia’s defence industry holding, named DEFEND ID, which will supervise five state-owned enterprises (BUMNs). The holding is expected to support President Widodo’s goal: the defence industry sector should be self-reliant and compete in the global supply chain. DEFEND ID should also play an essential role in decision-making process, as well as to assess the best offset/ToT to maximise economic benefits in weapons acquisition programmes, including job opportunities.