Indonesian Defense Industry Policy in Changes

Abstract

Indonesia is the country with the strongest military strength in Southeast Asia. A country's military strength is determined by six things, namely military institutions, military policies, military resources, military weapons, national defense industry, and military title capabilities. This paper focuses on defense industry policy. This research uses multi-method research by prioritizing a qualitative approach. The results show that the liberation of business in the defense industry sector is in accordance with business regulation as a strategic industry. Then, the industry is controlled by the state whose control does not mean ownership of the Indonesian defense industry. However, this industry still has weaknesses including the vision of the Indonesian defense industry which is limited to supplying the domestic market, not easy to get capital, insufficient support to enter international markets, constraints in the mastery of technology, and limited human resources.