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CNBC November 25, 2022
Balancing the Ambition and Capacity of the Indonesian Shipyard
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DefenceSummary
In his recent article published by CNBC Indonesia, our defence expert, Alman Helvas Ali, highlighted that local defence industries are only capable of producing weapons with medium technology, such as patrol boats, and need to rely on foreign supplies for high-tech weapons, including frigates, combat aircrafts and submarines. However, in the past years, PT PAL Indonesia has been involved in various procurement of weapons systems. Recently, the company has been appointed by the Ministry of Defence to build frigates based on Babcock Arrowhead 140. In the meantime, PT PAL will also be involved in the expected construction of Scorpene class submarines and the shipyard CEO, Kaharrudin Djenod, has mentioned his ambition to build LHD and aircraft carrier in the near future. Taking into account several existing contracts which have not come yet into force, it will be essential for PT PAL to implement priority scales to be able to fully develop these upcoming defence systems.