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Government Urged to Strengthen National Defense Industry Independence

Jakarta– The government is considered to need to strengthen the domestic defense industry as part of a broader strategy for national independence and state resilience. The defense sector is positioned as a key pillar in achieving national self-reliance, supported by consistent policies, sustainable budgets, and synergy between State-Owned Enterprises (SOEs), Private-Owned Enterprises (POEs), and the financial sector.

“Strategic policies are required to enhance the domestic defense industry, including consistent implementation of Law No. 16 of 2012, particularly regarding the mandatory use of domestic products,” said Deputy Chairman of Commission I of the House of Representatives (DPR), Dave Laksono, in Jakarta, as reported by Antara on Wednesday, February 11, 2026.

He stated that strengthening the industry requires optimizing the Domestic Component Level (TKDN) in every procurement of major defense equipment (alutsista), as well as formulating a long-term integrated roadmap involving the Ministry of Defense, SOEs, private companies, and research institutions.

In addition, Dave highlighted the importance of fiscal incentives, research and development (R&D) support, and measurable technology transfer (ToT) schemes.

“ToT should not merely involve assembly, but must reach the level of mastering design and engineering,” he said.

From a budgetary perspective, government support should not only focus on operational spending but also be directed toward strengthening the development of the domestic defense industry. New financing schemes have begun to be implemented through cooperation between the government, SOEs, and private partners.

“Several strategic projects, such as warships, combat vehicles, and transport aircraft, have been carried out using mixed financing schemes, further strengthening the foundation of the national defense industry,” he added.

Regarding procurement without importing defense equipment, Dave noted that Indonesia still faces challenges in the availability of certain components. However, the trend in local spare parts production continues to increase.

PT Pindad, PT Dirgantara Indonesia, and PT PAL have demonstrated tangible capabilities in producing defense equipment with increasing local content, indicating clearer progress toward self-reliance.

“Defense SOEs serve as the main backbone in the production of major defense equipment, while private companies act as strategic partners that strengthen the supply chain through the provision of components, technology, and innovation,” he said.

The synergy between the two sectors is key to ensuring that the national defense industry not only meets domestic needs but also penetrates international markets. Several defense SOEs have shown increased production capacity, including tactical vehicles, warships, and aircraft such as the CN-235 and NC-212.

In the private sector, PT Nanggala Kencana Rekatama Indonesia (NKRI), a purely private company based in Bandung that has obtained an official license from the Ministry of Defense, produces various components such as bullet casings, projectiles, and precision mechanical components for aircraft, ships, and tactical vehicles.

The presence of NKRI’s factory has made it an important part of the national supply chain, reducing dependence on foreign suppliers while increasing the proportion of defense spending retained domestically.

Additionally, PT Republik Defensindo has emerged as another strategic private player. The company actively manufactures specialized military vehicles, ranging from 4x4 tactical vehicles and troop transport trucks to prototype tracked amphibious vehicles.

In 2020, PT Republik Defensindo collaborated with a defense SOE to build an integrated 9×19 mm ammunition production facility. This indicates that national private companies are not only manufacturing vehicles but are also entering the ammunition sector, partnering with SOEs to enhance bullet production capacity for the Indonesian Armed Forces (TNI) and National Police (Polri).

Meanwhile, Commission I member Oleh Soleh stated that defense budget support in recent years has shown a strengthening trend in modernizing defense equipment through creative financing schemes, such as Public-Private Partnerships (PPP) and State Capital Participation (PMN).

“However, what we must encourage going forward is ensuring that financing is not solely used to purchase finished products, but also to expand national production capacity and technology investment,” said Soleh.

He acknowledged that although Indonesia has achieved self-reliance in producing tactical vehicles, ammunition, and patrol boats, international collaboration remains necessary for high-technology weapons systems, such as advanced radar systems and next-generation fighter jets.

He also emphasized the importance of support from the banking sector and national financial institutions, considering that the defense industry is a strategic sector requiring long-term financing with manageable risks.

“The involvement of private enterprises must continue to be expanded so that the defense industry does not rely solely on a few large companies, thereby strengthening and enhancing the competitiveness of our industrial ecosystem,” Soleh concluded.

Source: Pemerintah Dinilai Perlu Perkuat Kemandirian Industri Pertahanan Nasional https://www.metrotvnews.com/read/Ky6C56ng-pemerintah-dinilai-perlu-perkuat-kemandirian-industri-pertahanan-nasional