Indonesia Defence Update

The Indonesian Government is actively looking to build up its defence industry and capabilities, particularly with international manufacturers and financiers.

- Andrew Drwiega

The Indonesian Government has a long-standing ambition to modernise and expand all of its defence forces. Much of its focus is on maritime, with over 17,000 islands in its archipelago and aware of China’s ocean territorial grab in the South China Sea.

Relations with Australia, its southern neighbour are, at times, strained although there are enduring attempts to bring their relationship closer together.

The Jakarta government, headed by Joko ‘Jokowi’ Widodo who took the presidency in October 2014, has continued to strive to build Indonesia’s defence industry, allowing it partnerships such as already exist between Airbus and PT Dirgantara (PTDI) in Bandung. But these kind of partnerships and agreements over arms development, technology transfer and acquisition are being sought across all defence domains. Infact Airbus’ main world rival, Boeing, may be about to get its own foothold at PTDI if the government follows up on its interest to purchase up to 10 Boeing CH-47F Chinooks.

On 29 August, Boeing and PTDI signed a memorandum of understanding (MoU) to explore collaborative areas of opportunity to include manufacturing technology, certification, as well as support and maintenance of vertical lift products. With eight AH-64E Apache’s having been delivered to the Indonesian Army (TNI-AD) earlier in the year, together with a full suite of sensors and missiles, the government’s relationship with Boeing looks set to flourish.

“We see this memorandum as an important step in support of Indonesia’s vision for current and future economic development as well as the growth of the country’s aerospace sector,” said Boeing Southeast Asia president Skip Boyce said after the signing.