Podcasts

The progress of the Minimum Essential Forces (MEF) has reached 62% until 2021, but is predicted that it will not be able to meet the target of 100% by the end of 2024. In fact, the Commander of the Indonesian National Armed Forces (TNI), Gen. Andika Perkasa, also stated that the modernisation progress will only reach 70% by 2024, due to various factors which eventually hinder the MEF plan.

In our latest webinar, Alman Helvas Ali reminded that the Indonesian government should have backup plans for its National Armed Forces (TNI) modernisation. M. Ali also highlighted the importance of focusing on the right priorities due to budget constraints, which could hinder procurement programmes.

In our latest webinar, Brig. Gen. Oktaheroe Ramsi stated that Indonesia’s defence posture and modernisation plan is focused on developing the Indonesian National Armed Forces (TNI) strength. However, the modernisation of the armed forces, especially long-term planning, cannot be implemented quickly due to numerous considerations involving all levels of government.

In our latest webinar, Curie Maharani Savitri argued that amidst limited fiscal capacity, Indonesia’s national armed forces modernisation plan should be based on cost-effective solutions. For example, the French (Defence) Research and Development Agency, operates a dedicated division that monitors technological advancement in the commercial sector. Once there is a technology that has the potential to be developed into defence technology, they will try to develop and support it even if it is not 100% mature.

Despite showing progress in domestic economic recovery, Indonesia is still facing turbulences such as the war in Ukraine, which is affecting the global commodity prices. Through the National Armed Forces (TNI) modernisation program, the domestic defence industry is expected to contribute to the post-pandemic economic recovery thanks to defence equipment procurement programmes.

In our latest webinar, Alman Helvas Ali argued that political aspects are essential in weapons procurement deals and decision-making process. M. Ali also stated that Indonesia should procure defence equipment in large quantities in order to maximise the technological and economic benefits of the acquisition program.

In our latest webinar, Maj. Gen. (Ret.) Jan Pieter Ate argued that without sufficient budget allocated for the National Armed Forces (TNI) modernisation program, Indonesia might not be able to achieve its objective of a self-reliant defence industry. In addition, Indonesia should reduce the acquisition of foreign-made equipment to support the development of the Indonesian defence industry.

Novan Iman Santosa, an editor for The Jakarta Post, stated in our latest webinar that it should be mandatory for public institutions requiring land or air assets to carry out their duties to prioritise domestic-made equipment. M. Santosa also argued that Indonesia should be able to balance production for commercial and strategic use should the country wish for defence autonomy.

For Indonesia, the concept of strategic autonomy is not unknown due to the country’s free and active international relations policy, which allows it to procure arms from diverse trading partners. Moreover, Indonesia’s armed forces modernisation plan through offset and Transfer of Technology programs could accelerate the country’s ambition for strategic autonomy. Nevertheless, Indonesia must stay vigilant in choosing the ‘right’ trading partners, especially during times of crisis, to avoid foreign policies inconsistencies from its partners.

In our last webinar, Maj. Gen. (Ret.) Jan Pieter Ate argued that to achieve strategic autonomy, Indonesia should procure more local arms compared to imported ones, especially with the ratio of imports and local supply being 83% and 17% respectively, during the COVID-19 pandemic. M. Ate also noted that the key to Indonesia’s independence in arms procurement is to empower the local defence industry.

The Founder and Executive Director of Verve Research, Natalie Sambhi, stated in our latest webinar that Indonesia’s strategic non-alignment creates several strategic opportunities for the country in the Indo-Pacific region, notably to show leadership and build security consensus in the region.

In our latest webinar, Alman Helvas Ali explained that Indonesia is currently seeking cooperation with Turkey and France to improve its defence capability. However, France is a more favourable option as its arms procurement offers more benefits in terms of technology and financial profit.

In the latest webinar, our director, Alban Sciascia, highlighted that Indonesia could benefit from the recent signing of several Memorandum of Understanding (MoU) on defence equipment procurement through offset opportunities. M. Sciascia gave the example of composite materials in the aerospace industry, as well as batteries from submarines, as dual-use technologies that Indonesia could obtain and capitalise on.

In our latest webinar, Dr. Ir. Yono Reksoprodjo argued that regardless of the defence equipment’s Indonesia aims to procure, there are several aspects that the government must assess, especially to meet the target of 60% of local industry contribution in arms procurement by 2024.

CEO of PT Dirgantara Indonesia, Gita Amperiawan, stated in our latest webinar that while the country is currently focusing on maximising the technologies that are being developed by PT Dirgantara Indonesia for defence equipment, such technologies are, in fact, also considered as dual-use that can also be implemented for commercial products.

Alman Helvas Ali, who was one of the speakers of our latest webinar, emphasised that Indonesia should carefully consider the transfer of technology programme that it is going to ask from Naval Group in the recent submarine procurement deal. M. Ali suggested that the most beneficial aspect for Indonesia would be to adopt the lithium battery technology that could eventually benefit the national EV battery industry.

In our latest webinar, Novan Iman Santosa, explained that new products that are obtained through dual-use technology development can eventually help Indonesia increase its economic scale from defence equipment procurement, as well as to cushion the costs of R&D activities for defence-related products.

Indonesian policymakers must not omit certain aspects of international politics such as potential sanctions that could result from weapons procurement, and that would jeopardise the National Armed Forces (TNI)’s long-term modernisation plan. It is therefore crucial for Indonesia to find ways to minimise such a risk by carefully assessing its potential suppliers, their country of origins’ foreign policies, as well as their track records.

Ade Marboen, who was one of the speakers in our recent webinar, stated that Indonesia needed to find alternatives to Russian weapons operated by the Indonesian National Armed Forces (TNI) in order to minimise the risk of being sanctioned.

Curie Maharani Savitri argued in our recent webinar that Indonesia should take into consideration three aspects for its long-term defence modernisation plan. First, Indonesian law stipulates that there cannot be any risk of embargo in procurement deals. Second, Indonesia should not acquire weapon systems from countries with whom it is in conflict. And, finally, the country must ensure its independence in the use and maintenance of weapon systems.

In our recent webinar, Alman Helvas Ali reminded that during the prelude to the invasion of Ukraine by Russia, states like Germany or Israel banned other countries from re-exporting their weapon systems to Ukraine. Consequently, Alman emphasised that Indonesia must learn from what happened and choose suppliers from countries whose foreign policy remains stable, especially in terms of arms export.

Alman Helvas Ali reasoned that submarine procurement is urgent, and the process needs to take into account other important factors such as qualified human resources, and MRO (maintenance, Repair, and Overhaul). He further insisted that the country has the capacity to revive its submarine fleet, but that the decision-making process has to carefully study the issue.

Ade Marboen argued that due to Indonesia’s geography, the country Indonesia cannot go forward without submarines in light of its geographic exposition. He affirmed that the country’s finance, geopolitical context and existing threats should model the format of the submarine fleet.

Colonel Arif Badrudin emphasised the importance of submarines’ role in a defence strategy. He explained that countries in the Asia-Pacific have been actively pursuing submarine procurement, both quantitatively and qualitatively, in order to adopt a credible defence posture.

Col. Dedy Laksmono from Indonesian Ministry of Defence explained Indonesia’s current policy on Counter Trade, Local Content, and/or Offsets (CTLCO) and how Indonesia could achieve its defence industry priority programs.

Curie Maharani Savitri discussed what would it take for Indonesia to be able to modernise its armed forces through effective offset strategies, and how could the country increase its strategic autonomy when it comes to defence industry and arms procurement.

Alman Helvas Ali highlighted the economic opportunities that Indonesia can obtain from offsets program in defence equipment procurement and how to maximise this opportunity in the post-Minimum Essential Force (MEF) era.

Novan Iman Santosa noted the current state of Indonesian defence industry and how low-tier industries could also become part of the global supply chain and contribute to the country’s economy by maximising the opportunities of offset programs.