Attracting More Foreign Investment in Indonesian Defence Industry

Through the Job Creation (Omnibus) Law, the government revised several articles in Law No. 16/2012, which marks a new chapter of the Indonesian defence industry sector. The Omnibus Law particularly allows national private sector to compete and be potentially appointed as lead integrator in defence equipment procurement deals. Furthermore, the involvement of domestic private defence firms is aimed to generate healthy market competition and to provide investment opportunities for foreign suppliers that could eventually create spillover effects on Indonesia’s economy.