Volume 8, Issue 1, January – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Competitive Analysis of Indonesian Defense Industry

SOE: Opportunities and Challenges Post-Holding of
Indonesian Defense Industry SOE
Bayu Prasetiyo, Posma SJK Hutasoit, Sri Sundari
Defense Economic Study, Faculty of Defense Management
Republic of Indonesia Defense University
Jakarta, Indonesia

Abstract:- Indonesia has carried out defense industry In addition to responding to customer needs, the
state-owned enterprises holding to create a strong and escalation of global threats and transnational issues has
independent defense industry. This study aims to examine indirectly impacted on the increasing need for state and non-
the opportunities and challenges of the Indonesian defense state entities to produce and strengthen their respective regional
industry after holding. This qualitative research uses defense and security systems. This condition then contributed
interviews and literature studies as a method of collecting to the stretching of the defense industry growth globally in
data that originates from primary and secondary data, and various countries, including Indonesia.
analyzed using the competitive strengths model. By
holding the defense industry holding, defense The Indonesian defense industry is currently faced with
independence will be more easily realized because the the challenge of fulfilling the minimum essential force/MEF.
state-owned defense industry is much more consolidated so Efforts to fulfill the national defense force at the MEF level in
that it is better prepared to compete in the global market Indonesia have not been fully realized. The development of
and can generate economic benefits for Indonesia. new national defense forces and capabilities results in a
However, there are a number of challenges that must be national defense posture with limited powers [3]. The
overcome by the Indonesian government, including management of strategic and defense industries in several
fulfilling domestic component level and becoming the top countries is almost always faced with the main issues:
50 in the world's defense industry. A number of these development of defense technology that relies on two schemes,
challenges need to be resolved and pursued so that strengthening research and development of the defense
Indonesia's dependence on defense and security from industry, and through offset and technology transfer schemes
abroad is reduced. [4].

Keywords:- Competitive Analysis, Defense Industry, State The Defense Industry is one of the vital components of
Owned Enterprises, Holding, Opportunities And Challenges. defense capabilities. A strong defense industry has two main
effects, a direct effect on the development of defense
I. INTRODUCTION capabilities, and an effect on national economic and
technological development. In the field of defense capability
Globalization has pushed the world to become more development, a strong defense industry guarantees a
competitive, especially in the economic field of industry and sustainable supply of defense equipment and defense facilities.
trade. In Indonesia, the defense industry had been contraction Availability of the supply of main weapon system tools on an
but was able to survive and grow amid the COVID-19 ongoing basis is an absolute prerequisite for the flexibility and
pandemic crisis. This is caused by the defense industry's certainty to draw up long-term defense capability development
business processes which tend to have no direct connection plans, without any concerns over political and economic
with meeting the needs of the community, thus encouraging factors, such as embargoes or restrictions.
optimism among various groups that the national defense
industry will be able to become the world's Top 50 in 2024 [1]. The defense industry can have an effect on national
This condition also supports the trend of the defense industry economic and industrial growth, that is participating in
which has been able to survive amid global shocks, because stimulating national industrial growth on an international scale,
most countries in the world tend to rely on domestic producers absorbing a significant number of workers, transferring
to meet their needs. As with global industrial lines, the supply technology that can stimulate the research and development
chain of the defense industry has also been diversified due to sector while meeting the needs of the national education sector
the fact that most companies in this sector prefer to become in the fields of science and technology [5] . The more advanced
"systems integrators" rather than being industrial producers. the defense industry will automatically open new jobs,
[2]. This condition makes the defense industry even more encourage the growth of other industries because it has many
vulnerable due to the wide production network. multiple linkages from upstream to downstream, encourage the
acceleration of technological progress, thereby reducing the

IJISRT23JAN1552 www.ijisrt.com 2346

Volume 8, Issue 1, January – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
size of the budget that is usually spent on importing various In its development, the national defense industry
defense equipment from abroad. represented by this cluster has achieved quite impressive
achievements because it is able to compete globally, by
There needs to be a national consensus in favor of entering the top 100 world defense entities as illustrated in the
developing the capacity of the national defense industry so that following graph.
it can have core competencies that are competitive at the
regional and global levels. This consensus is realized in
optimizing cooperation between institutions directly related to Fig 1 Top 100 Global Defense Companies 2020 (Viewed
the procurement of defense equipment, especially the Ministry from Defense Sector Revenue in trillion Rupiah)
of Defense, the TNI, and domestic producer parties in the
context of building defense facilities based on the domestic
defense industry.

The implementation of national defense and security is

the responsibility of the Indonesian National Armed
Forces/Tentara Nasional Indonesia (TNI) as the main
component in the national defense system. For this reason, TNI
must have optimal strength and combat capability. The
development of the TNI's strength is carried out in stages and
continuously which is compiled in a five-year strategic plan,
and adjusted to national systems and policies, state capabilities,
and global, regional, and of course national strategic
environmental situations. Achieving the embodiment of
professional capabilities and skills, as well as the TNI's force
structure which is characterized by technology, automatically
requires qualified personnel and the main weapons system.
This defense equipment requires a certain level of technology
that is needed and needs to be mastered, and capable of being
developed for the next 5 to 10 years, so that it can adapt to the
demands of operational needs[6] . Source: Indonesian Ministry of Defense (2021)

Based on the objectives for the quality level of capabilities Even though it is not optimal, this achievement certainly
and the structure of the TNI's operational forces that are brings fresh air to efforts to develop the national defense
conceptualized for the next 5 to 10 years, it appears that each industry, especially to be able to increase the global ranking
element is always related to the role of technology in all and make national entities part of the global supply chain.
objectives, both strength targets and capability objectives.
These targets will continue to increase in line with the progress In the plan to develop the defense equipment posture and
and development of existing technology. Facing the challenges the defense technology industry, the government links the
of the TNI's future tasks, a clear manifestation of technological development plan for the defense equipment posture with the
domination which is very decisive in the TNI system, program to achieve the independence of the defense industry.
especially in the form of the weapon system used includes the During 2010-2014, the stages of stabilizing and optimizing the
main equipment and all its supporters, as well as the capabilities defense industry, preparing defense industry regulations, and
and skills of TNI soldiers in a professional manner[6] . preparing new defense equipment in the future were
deliberately directed to support the posture according to MEF.
This certain level of technology certainly requires a strong Whereas in the second phase of 2015-2019, the development of
and independent national defense industry. One way to get a the defense industry is deliberately aimed at having the ability
strong and independent defense industry is for the government to cooperate in the production and development of new
to unify/hold state-owned enterprises (SOE) in the defense products, such as medium tanks, rockets and submarines, in
industry sector consisting of PT. LEN Industri, PT. Pindad, PT. order to support MEF achievement and achieve an ideal
PAL, PT. Dahana, and PT Dirgantara, which is named defense force posture. Finally, the 2020-2024 phase, to support
DEFEND ID. The unification of a number of Defense Industry an ideal military posture, the industry must be significantly
SOE in Defend ID is a form of Indonesia's efforts to realize the capable and able to produce high-tech defense equipment
creation of defense Iindustry independence. However, keep in through international cooperation.
mind that in the current era realizing the independence of
defense equipment to reach 100% is something that is almost With a number of problems in the defense industry and
impossible, due to the existence of devices or technology that the development of defense technology, it is hoped that the
are only controlled by certain countries and must be presence of Defend ID can support the government's efforts to
imported[7] . build domestic defense independence. In addition, Defend ID
must also be able to compete with other countries' defense
industries, so that it can provide economic value for Indonesia
which ultimately supports the welfare of the people. Therefore,

IJISRT23JAN1552 www.ijisrt.com 2347

Volume 8, Issue 1, January – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
this research seeks to dig deeper into the prospects and heterogeneous environment will face many requests, tastes and
challenges for the development of the Indonesian defense customer needs. This condition requires companies to be more
industry amidst increasingly fierce competition following the aggressive and innovative, thereby increasing opportunities as
holding of the Indonesian defense industry. well as new threats for the company [11] . The competitive
environment itself can be seen from various aspects, including
II. RESEARCH METHOD customers, competitors, suppliers, distributors, substitutes, and
technology. In addition, it also includes demographics, culture,
This research is a descriptive qualitative research that is economy, government/industry regulations, prospects, and
intended to describe existing and ongoing phenomena as well other industries [12]
as in the past, for then linked to analysis and competitive
environment. This research uses primary data originating from On the other hand, the competitive environment also
4 research sources (Directorate of Defense Industry requires all existing elements to be considered important and
Technology – Defense Industry Policy Committee, and defense need attention to support company performance. However, in
industry players) related to the development of the defense the CI context, the customer is a top priority that needs special
industry, particularly regarding the general description, attention. Therefore, understanding and providing what
dynamics, regulations, to the value chain of the national customers want is a must in supporting a sustainable business,
defense industry. This research also uses secondary data although companies must not ignore competitors and other
sourced from books, indexed journals, official releases, and aspects [12] .
mainstream media coverage. The data analysis technique is
carried out by compiling and integrating, as well as III. RESULT AND DISCUSSION
investigating and finding specific relationship patterns from the
data that has been collected related to competitive forces, in President Joko Widodo has inaugurated the Defense
order to see prospects and challenges in the development of the Industry SOE holding namely Defend ID on 20 April 2022 at
national defense industry. and Defense Industry – Ministry of PT PAL Indonesia, Surabaya. During the inauguration, the
Defence, Committee Implementation Team Policy. President hoped that Defend ID could become a bridge for an
independent defense industry ecosystem and be able to
A. Competitive Force Model maintain Indonesia's sovereignty. The independence of the
Talking about competitiveness, cannot be separated from defense industry is urgently needed so that Indonesia can
the competitive concept intelligence / CI which is commonly immediately transform and be able to enter a new era of
used to assess the behavior and capabilities of competitors as competition with better preparedness. As an effort to realize
well as potential competitors, by engaging analysis and this independence, Indonesia through Defend ID targets to
intelligence from open sources to then be processed into enter the top 50 defense industries in the world by 2024. In
knowledge [8] . Therefore, an important aspect of CI lies in addition, the president hopes that Indonesian defense industry
efforts to direct the ability to think broadly in discovering new products can maximize the level of domestic component to
and unexpected things in corporate strategy [9] . While in reach 100%. According to the President, the domestic
conducting a CI analysis, there are several techniques that are component level of the Indonesian defense industry is currently
commonly used, including SWOT analysis (Strengths, only 41%. Therefore, with Defend ID, Indonesia can maximize
Weaknesses, Opportunities, and Threats), PEST analysis the use of domestic components so that dependence on imports
(Political, Economic, Socio-Cultural and Technology), supply of defense and security equipment can be reduced [13] .
chain analysis (value chain analysis), scenario analysis, as well
as industry analysis or known as Porter's Five Forces analysis Defend ID consists of PT. LEN Industri, PT. Pindad, PT.
[10] . PAL, PT. Dahana, and PT Dirgantara, with each company's
mainstay product portfolio, including:
As one of the techniques commonly used to view
industrial images, Porter's Five Forces analysis became a fairly  PT. LEN Industri
popular analysis technique after Michael E. Porter introduced  Medium range radar
it in a book entitled “Competitive Advantage: Creating and  Starstreaks
Sustaining Superior Performance” in 1985. This concept is then  Gunnery firing ranges
increasingly used to understand competition and the  Tactical data link
competitive environment in determining industry dynamics,  Communication system
increasing profitability, and anticipating possible threats that
are difficult to prove [9] . The five forces are 1) competition in  PT. Pindad
the industry, 2) bargaining power of suppliers, 3) bargaining  Anoa 6x6 APC
power of buyers, 4) threat of new entrants, and 5) threat of
 Komodo 4x4 APC
substitute products.
 Rhino 6x6 combat
 Maung 4x4
B. Competitive Environment
The implementation of business strategy is generally  SS2 V5-A1 assault rifle
inseparable from the business entity's view of competitive  Excava 40 (50 tonnes)
environmental conditions, especially in a heterogeneous  PTM-90 tractor
business environment. Competition between companies in a

IJISRT23JAN1552 www.ijisrt.com 2348

Volume 8, Issue 1, January – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
 PT. PAL The national defense industry is currently entering a
 Missile fast ship consolidation stage which leads to efforts to achieve joint
 Light frigate 105 m production independence in 2020 – 2024. This stage is stage II
 Strategic sealift vessel of the Defense Industry Independence Grand Design related to
 Submarine the fulfillment of security defense equipment 2015 – 2039,
 Barge-mounted power plant where collectivity is the core of the development of the national
defense industry, before being directed to compete in the global
 PT. Dahana market.
 Dayangel series
 Shaped charges Fig 2 Grand Design for the Independence of the Defense
Industry in Fulfillment of Defense Equipment 2015 – 2039
 Dayage silver
 P100L bomb
 Blast effect bomb

 PT. Dirgantara
 CN-235-220
 NC212i
 N219
 H225/215M
 Bell 412 EPI

 AS365 N3+ Dauphin

The Ministry of SOE has appointed PT LEN Industri as
the main holding company for the defense industry SOE. The
reason for appointing LEN as the holding company is based on
consideration of the company's business network covering all
fields of defence. LEN is expected to be able to integrate
technology between sectors and have capabilities in the fields Looking at the scheme above, it can be seen that the
of command, control, communication, computer, cyber, national defense industry is gradually focusing on inter-entity
intelligence, surveillance, and reconnaissance (C5ISR) as consolidation to achieve the main target of fulfilling the
interoperability and brain systems for all electronics-based domestic market, as well as international competition, and
platforms. Another reason is because LEN's position is supporting national economic growth. This condition made the
strategic and does not lean towards one dimension, but is able consolidation process tight, colored by competition between
to accommodate and integrate all three dimensions, land, sea entities within it to support production needs and ensure the
and air. In addition, LEN is also considered to have experience continuity of the business of each entity. Moreover, this plan is
as a holding company in managing its four subsidiaries [14] . supported by efforts to strengthen defense capabilities
contained in the 2020-2024 National Medium-Term
The all five defense industry SOE each have diverse Development Plan, there are namely supporting 100% of the
business fields, so the holding form or model chosen is the Essential Force whose operational strength is ready in 2024,
strategic holding model. Holding formation was chosen as the maturing the readiness of the main security-defense equipment,
most optimal consolidation option compared to the as well as increasing the capability of state-owned defense
consolidation option. This option was chosen by taking into industry to support security-defense equipment independence
account the factors of increasing revenue, cost savings, capital [15] .
optimization, brand reputation, process and time of
establishment, control, dilution, operational disruption and On the bargaining power side of buyers, the defense
regulations [14] . industry tends to have limited consumers, where government
organizations, especially military and security agencies, are the
A. Opportunities main users of defense industry products. [16] . This allows
With the formation of the defense industry SOE holding, defense industry consumers to monopolize the products they
it is hoped that defense independence will be more easily produce, although they also have the opportunity to take
realized and at the same time encourage the domestic defense advantage of imported products from various countries.
industry to be fully prepared to enter a new era of competition However, strict regulations on imported products are expected
and be able to fulfill the minimum essential force to maintain to be able to support the growth and development of the
the sovereignty of the Republic of Indonesia. It is hoped that national defense industry, especially through the mandatory use
with Defend ID, the defense industry will be much more of domestically produced security-defense equipment which is
consolidated, the ecosystem will be stronger, able to compete supported by regulations related to the obligation to fulfill the
in a healthy and profitable manner [13] . domestic component level and company benefit weight .

IJISRT23JAN1552 www.ijisrt.com 2349

Volume 8, Issue 1, January – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
In its development, the dynamics of the defense industry Understanding (MoU) for joint product production Armored
itself are inseparable from the large allocation of a country's Amphibious Assault Vehicle between PT Pindad and FNSS
defense budget, considering that the main customers of defense [13]
products are the state's military institutions. Therefore, the size
of a country's defense budget can indirectly affect the dynamics B. Challenges
of the defense industry in a country, including Indonesia. Holding defense industry SOE in Defend ID is a form of
Indonesia's efforts to create defense industry independence.
Table 1 Military Expenditure In Asean Countries 2017-2021 However, keep in mind that in the current era realizing the
No Country Military Expenditure (in billion US independence of defense equipment to reach 100% is
dollars) something that is almost impossible, due to the existence of
2017 2018 2019 2020 2021 devices or technology that are only controlled by certain
1 Indonesia 8.80 7.56 7.66 9.49 9.20 countries and must be imported, but Indonesia can try to
2 Malaysia 3.70 3.38 2.77 3.91 3.85 increase the content of local payloads to reach at least more
3 Singapore 10.43 10/52 10.66 11.02 10.7 than 60% of the total defense system components built.
4 Thailand 6.32 6.88 7.31 7.36 7.20
5 Philippines 4.30 2.96 3.47 3.49 4.25 The Ministry of SOE is targeting the defense industry
6 Brunei 0.35 0.35 0.41 0.44 0.45 holding to become a Top 50 Defense Company in 2024, which
Darussalam is planned to be achieved through increasing capabilities and
7 Vietnamese 4.70 5.00 4.70 5.60 6.39 increasing revenue and income through a planned business,
Laos n/a n/a n/a n/a 0.18 technology and financial strategy. Referring to the 2019
8
audited financial reports belonging to PT Pindad, PT LEN
9 Myanmar 3.65 2.36 2.22 3.14 2.00
Industri, PT Dahana and PT PAL Indonesia, the revenue value
10 cambodia 0.48 0.55 0.59 0.63 0.60
from the defense business lines of the four BUMNs is around
IDR 4.6 trillion. While data on the revenue value of PT
As one of the powers in Southeast Asia, Indonesia has a
Dirgantara defense business line is not available, except for the
relatively large defense budget when compared to other company's total revenue of US $ 257.9 million in the 2019
countries in the region, although it is still below Singapore. audited financial report. Assuming that PT Dirgantara earns
This condition makes Indonesia a potential market for the
IDR 1 trillion from the defense business line, the total revenue
regional and global defense industry. However, in practice,
of the five BUMNs the defense industry in 2019 was around
countries in the region often become potential markets for the
IDR 5.6 trillion or the equivalent of the current US$ 386
Indonesian defense industry, which are actively able to record
million. Meanwhile, ranked 50th in the Top 100 Global
significant export values. Apart from PT PAL which managed
Defense Companies for 2021, TransDigm is a United States
to export $86.9 million from the sale of two units of Strategic
firm with a revenue value from the defense business line of US$
Sealift Vessels to the Philippines several years ago, PT Pindad 2.1 billion. It is a big challenge for the BUMN Defense holding
was also able to record exports of combat vehicles and spare
to be able to increase revenue from the defense business line
parts worth US$495.97 million in 2019, an increase of 37.02%
which in 2019 was valued at US$386 million to at least US$2
from the previous year. Likewise, Vietnam and Thailand were billion in 2024.
successful as export destinations for similar products from
Indonesia in 2019, where the respective sales value reached
On the other hand, the problem of financing and
US$234.79 million and US$100.36 million (Indo Defense technology development is also still an obstacle for the national
Expo & Forum, 2019). This condition has indirectly increased defense industry, in addition to efforts to achieve independence
the company's competitiveness, as well as an impact on which are still ongoing. Therefore, improving the quality of
increasing market prospects and the development of the professional management and competitiveness is a challenge as
national defense industry, the trend of which is still ongoing well as an opportunity for the national defense industry. As for
today. In addition, the characteristic differences with other
other issues related to the availability of raw materials, it is
industries are allegedly able to have a significant influence on
hoped that it will become a consideration for the Government
the development of the national defense industry. to immediately build an upstream industry in the defense sector
that is well established and integrated, in order to meet
Defend ID has also signed a collaboration between domestic production needs. Data from the Ministry of SOE
Defend ID and the Ministry of Defense and between Defend ID even show that the import value of the defense industry SOE
and global partners. The signing of the cooperation included reaches IDR 1.7 trillion, and the domestic component level
the procurement contract for 13 GCI Radar units and their
ratio is still below 15% for most of the equipment produced
supporters between PT Len Industri and the Ministry of domestically, so that the defense industry ecosystem clearly
Defense, the procurement of small caliber munitions between needs to be further integrated [15].
PT Pindad and the Ministry of Defense, the MRO contract for
the modernization of 12 C 130 aircraft between PT Dirgantara
Realizing the grand vision of making Defend ID enter the
Indonesia and the Ministry of Defense, agreement for MRO
top 50 in the defense sector in the world and realizing the
cooperation for capacity building and modernization of independence of the national defense industry is indeed a
Indonesian Navy warships between PT PAL Indonesia and the
necessity that Indonesia should pursue, so that it will reduce
Ministry of Defense, Heads of Agreement (HoA) for defense Indonesia's dependence on imported defense equipment. Even
electronics technology between PT Len Industri and Thales so, keep in mind that realizing independence requires a long
International SAS, France, and Memorandum of

IJISRT23JAN1552 www.ijisrt.com 2350

Volume 8, Issue 1, January – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
time and costs are not cheap. In addition to increasing market REFERENCES
potential nationally and internationally, it is necessary to
increase and more comprehensively study in the field of [1]. Fuad, “Buum! Tiga Tahun Lagi Industri Pertahanan
research and development for certain security-defense Indonesia Masuk 50 Besar,” Sindo News, 2021.
equipment technologies and platforms by all members of the [2]. R. Farley, “How Has COVID-19 Affected the Global
holding. Defend ID can be a hope to pursue Indonesia's ideals Defense Industry?,” The Diplomat, 2021.
of independence, but this certainly needs to be accompanied by [3]. Aa. Jazuli, “Pembangunan Pertahanan dan Keamanan
strong will and determination by all relevant stakeholders. Demi Penegakan Hukum di Indonesia: Kewibawaan
Suatu Negara,” J. Penelit. Huk. JURE, vol. 16 No. 2, p.
IV. CONCLUSION 188, 2016.
[4]. Muriadi, “Model Pendanaan Industri Pertahanan dan
Holding defense industry SOE is a strategic move by the Peningkatan Sumber Daya Manusia,” J. Pertahanan2,
government, especially the Ministry of Defense of the Republic vol. Vol 05 No., p. 213, 2015.
of Indonesia to achieve defense independence through the [5]. A. Hartanto, Kajian Kebijakan Alutsista Pertahanan dan
defense industry. Fulfilling the needs of modern defense Kemanan Republik Indonesia. Jakarta: LIPI Press, 2013.
equipment is the main program of the TNI in carrying out its [6]. Poerwadi, Teknologi yang Dibutuhkan dan Dikuasai
main tasks according to the mandate of the applicable laws and dalam Rangka Mengemban TugasTugas TNI 5-10 Tahun
regulations. With the formation of the defense industry SOE Mendatang. Jakarta: Lembaga Studi Pertahanan dan
holding, it is hoped that defense independence will be more Studi Strategis Indonesia, 2001.
easily realized because the defense industry SOE are far more [7]. L. Keris, “Peluncuran Defend ID, Sebuah Ikhtiar demi
consolidated. Thus the domestic defense industry is expected Kemandirian,” 2022.
to be able to play a role in meeting MEF targets and be ready https://lembagakeris.net/peluncuran-defend-id-sebuah-
to compete in the global market and can generate economic ikhtiar-demi-kemandirian/.
benefits for Indonesia. [8]. P. S. P. Adidam, M. Banarjee, “Competitive Intelligence
and Firm’s Performance in Emerging Markets: An
However, there are a number of challenges in meeting the Exploratory Study in India,” J. Bus. Ind. Mark., vol.
targets set by the government for Defend ID. These challenges 27(3), pp. 242–252, 2012.
include fulfilling domestic component level and the target of [9]. M. N. C. Hakansson, “Competitive Intelligence for
becoming the top 50 in the world's defense industry. A number Information Professionals,” Oxfordsh. Chandos Publ.,
of these challenges need to be resolved and pursued by Defend 2015.
ID so that Indonesia's dependence on defense and security from [10]. A. Cloutier, “Competitive Intelligence Process
abroad is reduced. Integrative Model Based on a Scoping Review of the
Literature,” Int. J. Strateg. Manag., vol. 13(1), pp. 57–
With the formation of the holding, the defense industry 72, 2013.
SOE are expected to be able to move quickly, be agile, and keen [11]. J. G. M. Huse, D.O. Neubaum, “Corporate Innovation
to see opportunities and enter global supply chains. and Competitive Environment,” Int. Entrep. Manag.
Nevertheless, the fulfillment of domestic needs must still be Journa, vol. 1(3), pp. 313–333, 2005.
prioritized. The launch of the holding is also expected to be a [12]. S. Sharp, Competitive Intelligence Advantage: How to
momentum to transform and build a modern defense industry Minimize Risk, Avoid Surprises, and Grow Your Business
ecosystem. SOE in the defense industry that are strong, in a Changing World. New Jersey: John Wiley & Sons
independent and able to compete in the global market will Inc, 2009.
spearhead the independence of Indonesia's defense industry. [13]. Kemensesneg, “Luncurkan Defend ID, Presiden: Jadikan
For that, technology must be mastered. The latest component Lompatan Transformasi Industri Pertahanan Indonesia,”
manufacturing based on dual used technology must also be 2022.
mastered. The widest possible global partnership also needs to [14]. S. Ramalan, “Defend ID, Ini Alasan Dibentuknya
be built with parties willing to share/transfer of technology Holding BUMN Pertahanan,” economic okezone, 2022.
[15]. K. B. RI, “Data BUMN Klaster Industri Pertahanan,”
In addition, in order for a national defense ecosystem to Jakarta, 2021.
be formed, there needs to be consistency and a serious [16]. A. Barnea, “Competitive Intelligence in The Defense
commitment from the government in purchasing defense Industry: A Perspective From Israel - A Case Study
equipment through state-owned defense companies. The goal Analysis,” J. Intellihence Stud. Bus., vol. 4(3), pp. 91–
is to have a sustainable and sustainable policy. 111, 2014.

IJISRT23JAN1552 www.ijisrt.com 2351