Defense Market & Industry Consultant Former Jane's Representative - Indonesia NO QUOTE WITHOUT PRIOR CONSENT Wartawan "ZONA JAKARTA" DILARANG KUTIP TANPA IZIN!!
Jakarta Capital Region
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Is CN235 sunset a/c because of no new order from customer? Airbus DS and GE Aerospace respectively have a role on whether ID airframer should continue CN235 production or not. Autonomous right related to A400M new order by ID. CT7-9C made by GE Aerospace. cnbcindonesia.com/opini/2026…
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A firm want to stay low despite it agreed with local company to explore opportunity on submarine MRO. Meanwhile, local firm want to have a high profile with that "achievement". That's why there was a mess on press release because press release retracted after previously released.
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At least two ID patrol boats adopted RU 57 mm gun. Was the performance good enough? What about sustainment? Is there enough support from OEM? What about IN 40 mm gun? How's the gun's performance? On sustainment, is there enough support from L&T? ID love diversity to the bone.
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What Hanwha Ocean would do if ID insisted not to activate former DSME submarine contract? Bring the case to arbitration court? Seems ID doesn't care with that contract anymore. On the other hand, ID has reasons not to activate it. Better for Hanwha Ocean to forget that contract.
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During 2020-2024 MEF, only a few contracts signed without budget availability. Today, in the 2025-2029 OEF, numbers are increasing. Including some high-profile contracts. We don't know the fate of these contracts yet. Maybe budget can be taken from PSP because PSP is lump sum.
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A foreign defense firm CEO will be in Jakarta next week to meet MoD officials. The visit's objective is trying to move forward his OEM business. However, most likely ID has no interest to do business anymore due to some reasons. We shall see whether CEO's mission succeed or fail.
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MoU between ID, QA, PK and TR on defense industry is about defense trade. QA will be lender for ID procurement, PK and TR will export their equipment to ID and ID will be the market. No beneficiary for ID as a country. Only certain party in ID will be beneficiary on that trade.
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With current development on ID defense market, is that still attractive for tier one OEMs? Favorability on certain countries only, no transparency on defense procurement, preference for acquisition through makelaar have prevailed. No level playing field.
cnbcindonesia.com/opini/2026…
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Sometimes a country decision to buy another country's defense equipment not based on needs but based on gesture of recompense over the former. Buyer doesn't need such defense equipment, but political consideration prevailed over operational requirement. How if buyer re-export it?
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How robust ID's defense trade regulation is? Let's say a country which bought an ID made equipment want to re-export it to a third country. Does that country need ID approval first for re-export? Or it can re-export without ID approval at all? This is not a hypothetical question.
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A CMS claimed made in-house by a SOE actually made by another firm. A torpedo claimed made in-house actually made by a foreign firm. Neither that SOE has capability on defense electronics nor torpedo production. Being honest about own capability seem hard. Boasting is number one.
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Unless something happens, we may see the era of CN235-220 will be ended soon. No new order for export. ID government didn't offer to provide export credit for CN235-220 customer. It also has challenge on engine supply from GE Aerospace. Further, autonomous right may not grant.
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Sometimes there is a gap of understanding between MoD and end-user about the purpose of certain weapon. Such gap, if MoD doesn't understand the purpose, may make end-user failed to have their desire equipment. This case may happen in the 2025-2029 defense procurement program.
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How to manage ID government debt if MoF doesn't know in advance how much debt issuance in the current-year budget? Also not know what program will be executed in the current-year budget? This is the risk of lump sum budget approval for defense procurement in the Blue Book today.
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Referred to regulation, no contract allows to sign without budget availability. Sometimes this regulation breached by MoD and OEM. However, such contract still can't be executed. So, if in the near future a new contract sign while no budget available, it won't go anywhere.
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Seems until end of this decade, ID will be one of the toughest defense markets for AIR. No signal yet for repeat order of A400 while Airbus Helicopters has a new competitor from the other part of Alps. No signal for any new contract for AIR made rotorcraft. It's about compliance.
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How to integrate GR and TR systems while politically they are hostile each other? That only one case on the implication of ID's diversification policy on defense equipment. Another question is how to integrate CN jet fighter with FR air defense radar? cnbcindonesia.com/opini/2026…
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ID should have a realistic requirement plan for defense satellite until mid 2050s. Never to have an ambition to make comm and spy satellites domestically with a timeline doesn't make sense from engineering perspective. Don't forget about rocket launcher. cnbcindonesia.com/opini/2026…
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After ID airframer failed to bring in S-70M due to change of mind by MoD, what type of rotorcraft to replace it? Bell 412 again? New EPX? Are ID curse with Bell 412 family? Can Bell/Subaru deliver it within 24 months? Has JP change its policy on EPX export for military purpose?
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