Pindad Sees Hurdles to Defense Industry
Markus Junianto Sihaloho |
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343715"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."
How many elementary schools or community health centres would that pay for?
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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already outdated.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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