Page 7 - ADAS 2024 - DAY 3

MRO, including military transport their performance and competitive- other principals or invite related pri-
aircraft. ness, so they aren’t left behind by vate industries to join them. Here, we
private firms that are continuously act as mentors, working with relevant
“Additionally, PCM Marine is showcas- striving to enhance their capabilities. stakeholders, as these tasks cannot
ing specialised cabling products for If both SOEs and private companies be done in isolation.”
naval ships, and PT Sari Bahari, which develop together, it will ultimately ben-
recently exported training bombs to efit both sides.”
the Vietnamese Air Force, is also
present. There are many more. We What steps are being taken following the
hope this exhibition will further pro- implementation of the Omnibus Law?
mote our defence industry and lead to Does this mean that private companies “This is being done gradually. It doesn’t
sales, whether to the Philippine Armed can now take on the role of ‘lead inte- mean that private companies can sud-
Forces or other nations, as this exhi- grator,’ which was previously reserved denly take over the role of lead integra-
bition serves as a platform for such for defence SOEs? tor the moment the Omnibus Law was
opportunities.” “Before the Omnibus Law, only SOEs enacted. It depends on assessments
had the capacity to be ‘lead integra- that we conduct annually, evaluating
tors,’ while private companies were the TRL (Technology Readiness Level)
Considering that DefendID oversees five limited to being second-tier suppliers, and MRL (Manufacturing Readiness
SOEs and also includes private compa- no matter how capable they were. Level) of each company, whether SOE
nies, what additional steps is DefendID Now, if private defence companies or private, within the defence industry.”
taking to support the development of demonstrate the required capacity
private defence industries in Indonesia? and production capability, they can
assume the role of ‘lead integrator.’
“These opportunities are no longer What are the expectations for the de-
exclusively for defence SOEs but now “However, if private companies still velopment of DefendID and Indonesia’s
extend to private companies as well. lack this capability, the role will contin- defence industry as a whole, particularly
This shift follows the introduction of ue to be held by SOEs under DefendID. with the upcoming new government and
the Omnibus Law in 2020 by President For example, PT TTS, which manufac- a new Defence Minister?
Jokowi, which ensures that equal op- tures ship control panels, remains a “The development of the defence in-
portunities are given to all players in subcontractor to PT PAL, as they are dustry is a programme that was initi-
the defence industry, both SOEs and not involved in shipbuilding, which is ated by Mr Prabowo during his tenure
private companies, allowing them to PT PAL’s domain. as Indonesia’s Minister of Defence.
enhance their technological capabili- With his upcoming inauguration as
ties and production capacities. “To help private companies improve President, we expect this initiative
their capabilities and production ca-
“This benefits private companies while pacity to potentially become lead in- to continue, as he has already laid
also encouraging SOEs to improve tegrators, they can collaborate with out a vision for our industry to keep
advancing, become highly competi-
tive, and be self-sufficient. Achieving
this requires following a process that
must be sustained, regardless of who
will be appointed as the new Defence
Minister.

“We believe this approach is the best
way to ensure that greater attention
is given to this matter, not just by Mr
Prabowo but also by President Jokowi,
who has similarly emphasised the im-
portance of prioritising the purchase
and use of domestically produced
goods as long as we are capable of
producing them locally.

“If we do not yet have that capability,
the law allows us to make foreign
purchases under conditions such as
offset and technology transfer, with
approval from KKIP (Defence Industry
Policy Committee). This is what we will
use to further develop our domestic
industry’s capabilities and capacity.”

ASIAN DEFENCE & SECURITY (ADAS) 2024 SEPTEMBER-27-2024 7