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How Can Indonesia Maximise Economic Benefits from Submarine Procurement?

Summary

The Indonesian government had provided a Rp1.2 trillion capital injection to PT PAL Indonesia in order to achieve its target to master submarine technology and build its own submarines. In order to achieve such a target, Alman Helvas Ali argues in his recent Op-Ed for CNBC Indonesia that the government should consider economic aspects to build a sustainable submarine industry.

In this article, Alman also states that the industry cannot support itself if solely based on ‘nationalist considerations’, but should also take into account economic assessment, such as state’s fiscal capacity for submarine procurement and MRO activities.

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