Markus Junianto Sihaloho

Pindad Sees Hurdles to Defense Industry

A top official of state-owned arms producer PT Pindad said on Tuesday that the company’s aging manufacturing facilities could prove to be an obstacle to the acceleration of the government’s program to establish a national defense industry.

Speaking in a discussion held in Jakarta, Pindad chief director Adik Avianto Soedarsono explained that his company faced a number of problems in contributing to the program.

One of the biggest problems facing most of the country’s arms manufacturers, he said, is that the facilities and tools used are already outdated.

“Fortunately, we are in the process of rejuvenating the facilities to gradually [return to] the initial capacity,” Adik said, adding that the process required more time.

He said Pindad also faced financial restraints, with limited funding making it difficult to design new products and mass-produce new innovations.

“Because we have limited financing, our product development must be very selective and is limited,” Adik said. “And the results of the product development cannot be used directly.”

Adik said doing business with the Indonesian Armed Forces (TNI), its main customer, also presented problems. He said the TNI often demanded short delivery times while extra time was needed to import many of the components required to manufacture the ordered weaponry.

However, Adik said he was optimistic that the government’s program to revitalize the defense industry could be started immediately, “if only all government departments related to the program could coordinate better.”

The Defense Ministry had earlier announced that it would compiled a complete list of armaments needed by the military and the police in the future.

The list is intended to the first step toward building a national defense industry.

Military analyst Hari T Prihartono, executive director of ProPatria Institute, an organization dedicated to defense issues, said the president must give serious attention to the program.

“Establishing a defense industry has become one of the president’s priority programs, so he must fulfill his promise,” Hari said.

“Besides, now is the time for Indonesia to move forward, at least becoming a country that can fulfill its own defense needs,” he added.

Armed Forces Chief Gen. Djoko Santoso has outlined some of the new weaponry needed by the military. The weaponry includes new helicopters, artillery cannons, armored vehicles, Hercules aircraft, small aircraft for maritime patrol, submarines and patrol vessels.

Though Adik not disclose the specific amount of money currently needed by Pindad, he did say the company owed Rp 277 billion ($29.4 million) to the government. He said he hoped the government would forgive the debt in exchange for a stake in the company.

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