INBRENG DEED SIGNED, PT LEN INDUSTRI OFFICIALLY LEAD HOLDING SOEs DEFENSE INDUSTRY

Jakarta (2/03/2022). PT Len Industri (Persero) officially became the SOEs Defense Industry Holding (Indhan) on March 2, 2022. This was marked by the signing of the Deed of Inbreng government shares between PT Len Industri (Persero) as the holding company and four Other Indhan members are PT Dirgantara Indonesia, PT PAL Indonesia, PT Pindad and PT Dahana. The signing and submission of the Inbreng Deed from the Ministry of SOEs of the Republic of Indonesia to PT Len Industri (Persero) was carried out at the Ministry of SOEs Office, Jakarta, on Wednesday (2/03).

Thus, the Ministry of SOEs has officially transferred the shares of the four indhan to PT Len Industri (Persero). Currently, Len as holding parent company of Defend ID owns all Series B shares of the four members of holding Defend ID. Meanwhile, the government owns 1 share of Series A Dwiwarna share in the four companies and 100 percent of Len's shares.

"The Defense Industry Holding process does not cause a change in state control of Holding members. The state remains in control either directly through the ownership of the Dwiwarna series A shares or indirectly through Len," said Deputy Minister of SOEs, Pahala Nugraha Mansury.

The transfer of shares previously received the blessing of the President of the Republic of Indonesia Joko Widodo last January through Government Regulation (PP) No. 5 of 2022 concerning the Addition of Indonesian State Equity Participation into the share capital of PT Len Industri (Persero). The PP has also been supplemented by the Decree of the Minister of Finance (KMK) No.40/KMK.06/2022 concerning the Determination of the Value of the Republic of Indonesia's State Equity Participation in the Share Capital of PT Len Industri (Persero) which was signed by the Minister of Finance Sri Mulyani on 14 February.

President Director of PT Len Industri (Persero) said, Holding the Defense Industry BUMN will bring benefits to all holding members, especially increasing the ability of holding members in terms of finance, as well as access to funding. Holding is also believed to be able to expand the Defense Industry market to a regional and international scale, including increasing bargaining power in technology transfer cooperation with foreign partners.

"March 2, 2022, is the birthday of the Defense Industry BUMN Holding with the brand and name Defend ID. Thank you to the BUMN Ministry and all Indhan BUMN stakeholders who continue to support the process of forming this holding," said Bobby.

Bobby also explained that the formation of the Indhan BUMN Holding must be a solution in building an advanced, strong, independent and competitive national defense industry. The long-term goal of this holding is to create the independence of alpalhankam (defense and security equipment) of the TNI and POLRI, to integrate C5ISR (Command, Control, Communication, Computer, Cyber, Intelligence, Surveillance, and Reconnaissance) supporting industries and energetic materials, supply chain development, and support government priority programs.

At this event, the signing of the Joint Commitment Statement for Holding BUMN Indhan to succeed programs and the development of the defense industry in Indonesia. Holding members are committed to carrying out their best efforts in implementing the strategic program for the defense industry cluster and forming four Taskforce Teams to support its implementation.

The joint commitment was signed by the five Managing Directors of the holding members, namely, President Director of PT Len Industri (Persero) Bobby Rasyidin, President Director of PT Dahana Wildan Widarman, President Director of PT Pindad Abraham Mose, PT Dirgantara Indonesia Gita Amperiawan and PT PAL Indonesia Kaharuddin Djenod.

Defend ID Millennial Community Launch

In addition to the submission of the inbreng deed, this event was also filled with the launch of the Millennial Defend ID community, which was named Young Defend and a talkshow that was guided directly by the Deputy Minister of State-Owned Enterprises I. The talkshow carries the theme "Defend ID's Women's Millennials Gait and Collaboration".

The talkshow presented representatives of female millennials who have occupied strategic positions in their respective Indhan SOEs. Millennials talk about career development opportunities for female employees and collaboration opportunities among Defend ID members.

The entire series of events was witnessed by the President Commissioner of PT Len Industri (Persero) Muhammad Herindra, Deputy for Finance & Risk Management of the Ministry of SOEs Nawal Nely, Deputy for Law & Legislation Carlo B. Tewu, Assistant Deputy for Manufacturing Industry Liliek Mayasari Assistant Deputy for Finance Bin Nahadi, Assistant Deputy for Corporate Legal Affairs Rini Widyastuti, members of the Board of Commissioners and Directors of Indhan, millennials and employees of each holding member who attended both offline and online.

Defend ID Member Business Priority and Focus Program

"In the 2022-2023 phase, the spin-off of the holding's parent business operations will be carried out in stages. Business operations at PT Len Industri, both non-defense and defense will be passed down to its subsidiaries," explained Bobby.

Holding will be able to minimize product overlap between Defend ID members. Len as holding parent plays a role in realizing interoperability or integrating the electronics of the 3 TNI dimensions, both land, sea, and air.

Len, PTDI, PAL, Pindad and Dahana will have their own business focus and priority programs after the holding runs.

Len focuses on platforms and Maintenance Repair & Overhaul (MRO) which determine the superiority of the main weapon system (defense equipment), and the integration of various national defense systems (Network Centric Warfare) with defense radar, underwater sensing and military satellites as priority programs.

PTDI focuses on developing airborne and MRO platforms with fighter aircraft, missiles, and drones as its priority programs.

PAL Indonesia focuses on developing marine and MRO platforms with submarines as its priority program.

Pindad focuses on developing ground-based and MRO platforms as well as providing weapons and munitions with medium tanks and rockets as its priority programs. Dahana focuses on developing energetic materials or explosives for all dimensions with propellant as its priority program.