The possible trajectories for Indonesia's defence industry in the TNI's minimum essential force strategy : the tortoise or the hare?

• Main Author: Chia, Win-son.
• Other Authors: Leonard Christopher Sebastian
• Format: Theses and Dissertations
• Language: English
• Published: 2014
• Subjects: DRNTU::Social sciences
• Online Access: http://hdl.handle.net/10356/55272
• Institution: Nanyang Technological University

Under the SBY administration, renewed focus and emphasis has been given to the Indonesian defence industry, culminating in the unanimous passage of Law Number 16/2012 on the Defence Industry (Undang Undang [UU] Tentang Industri Pertahanan) on 05 October 2012 (attached as ANNEX A [in Bahasa Indonesia] and ANNEX B [English translation]). Prior to the passage of the Bill, high profile announcements of the acquisition of advanced weaponry by the Tentera Nasional Indonesia (TNI) as part of its attainment of a Minimum Essential Force (MEF) capability by 2024 have added to the impression that the Indonesian defence industry was poised on an upswing. The central thesis of this dissertation is that like the proverbial tortoise, the Indonesian defence industry should take slow and measured steps in building up its capacities to support the TNI's MEF Strategy. This bright start has raised hopes that the Indonesian defence industry would be able to achieve autarky, as evidenced by comments from Indonesian Defence Minister Purnomo Yusgiantoro in May 2011 that Indonesia would be able to produce most of its weapon systems by 2030. Such confidence is also bolstered by high-profile projects such as the joint production of the KFX fighter Korea and other defence ventures. Nonetheless, that 2024 had been designated by the Indonesian Defence Ministry (Kementerian Pertahanan or KEMHAN) as the year for the achievement of the TNI's MEF status means that the incoming Indonesian President in 2014 and 2019 would have to take onboard and accept the MEF Strategy for it to succeed. The main challenge is hence the maintenance of political will and resources to the TNI and Indonesian defence industry, which is not a foregone conclusion given the likely competition for scarce resources. This dissertation is takes an inductive approach whereby a detailed examination of the Indonesian defence industry is first conducted before the theoretical frameworks are reviewed and a suitable construct chosen. The organisation of the dissertation hence reflects this inductive approach, whereby Chapter 1 first lays out the research methodology before a profile of the current status of the Indonesian defence industry is built up in Chapter 2. Chapter 3 would then examine the TNI's MEF Strategy as it pertains to the acquisition plans of the TNI and roles expected of the Indonesian defence industry in the MEF Strategy. Chapter 4 would then seek to review the theoretical frameworks in existing sources of research and identify a suitable model that would allow for a deeper analysis of the Indonesian defence industry. Chapter 5 would finally wrap up the analysis of the Indonesian defence industry by locating the position of the major Indonesian defence companies within the identified theoretical framework and suggesting policy recommendations that could assist in tracking the Indonesian defence industry's progress in terms of capability development.