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In 2017, the government had planned to relocate three defence state-owned enterprises (BUMN), namely PT Pindad, PT Dirgantara Indonesia, PT PAL Indonesia, to Tanggamus Regency in Lampung Island. The relocation plan was considered one of the government’s efforts to revitalise its defence industry sector, while also promoting equal development countrywide to strengthen its national resilience.

As a matter of fact, the development of strategic industries would not only bring economic benefits to the central government, but also to local governments and communities. Such cases can be seen in West and East Java, where defence BUMN operating in the area managed to absorb hundreds to thousands of workers and embrace local companies as part of the supply chain. While the government is planning to modernise the Indonesian National Armed Forces (TNI) and revitalise its defence industry sector in the long term, the spillover effects of defence spending could bring economic opportunities for all relevant stakeholders, including local actors.