BUSINESS FIELD AND DEVELOPMENT
Business Field
PT Pindad (Persero) is an Indonesia’s
State-Owned Enterprise (SOE) engaged in the primary weaponry defense system and
commercial products as follow:
1. Production
Our production
includes manufacturing the primary weaponry defense system and non-primary
weaponry defense system products, processing certain raw materials into primary
materials as well as finished products and assembling the following products:
1.
Weapons and munitions
2.
Special vehicles
3.
Pyrotechnics, propellants and explosives (military
and commercial)
4.
Energy conversion
5.
Transportation components and facilities
6.
Mechanical products, electro-optics and
optoelectronics
7.
Heavy equipment
8.
Power plant facilities
9.
Naval equipment
2.
Services
We provide services
for mining, construction and machinery industry as follow:
1.
Industrial system engineering
2.
Industrial products/equipment maintenance
3.
Quality testing and calibration
4.
Construction
5.
Machinery
6.
Heat and surface treatment
7.
Drilling
8.
Blasting
9.
Explosive disposal services
10.
Explosive transportation services
11.
Explosive warehousing services
12.
Electric motor maintenance
3.
Commerce
The marketing
and sales strategies which have been implemented by our company are as follow:
·
Old product to new market
·
New product to old market
·
New product to new market
We have domestically
and internationally marketed, sold and distributed our products and services as
well as other parties’ products such as:
1.
Ammonium Nitrate
2.
Panfo (Ammonium Nitrate Fuel Oil)
3.
Electrical Detonator
4.
Non-electrical Detonator
5.
Detonating COD
6.
Booster
7.
Seismic
Detonator
8.
Seismic Explosive
We have also
initiated new business line in industrial equipment related to product and
production technology of the primary weaponry defense system.
4.
Other products
and services
We also utilize
our company’s remaining capacity.
5.
Customers
a.
Customers of national defense and security
products:
Indonesian National Armed Forces (TNI), Indonesian
National Police (Polri), the Ministry of Defense, the Ministry of Justice, the
Ministry of Forestry, the Directorate General of Customs and Excise and Export
Market
b.
Customers of commercial products:
PT KAI
(Persero), PT INKA (Persero), PT PLN (Persero), the Ministry of Transportation,
National Shipbuilding, National Mining Industry, National Oil and Gas Industry,
National Agro Industry, National Electronic Industry.
COMPANY BUSINESS DEVELOPMENT
Until the end of 2017, Pindad managed to record positive growth compared to the previous year, in line with national economic growth which also recorded positive trends.
Global economic conditions in 2018 based on IMF's World Economic Outlook in July 2017 are estimated to be better than in previous years with projected global economic growth of 3.6 percent, increasing from 2017 at 3.5 percent and 2016 at 3.2 percent. The improvement in the global economy in 2018 is in line with global demand which is projected to increase and commodity prices are expected to stagnate.
The volume of world trade as a result of rising global demand is expected to grow by 3.9 percent in 2018. Global economic growth in 2018 will still be sustained mainly by groups of developing countries that get a boost from improving commodity prices and strong domestic demand. This has an impact on economic growth in developing countries to 4.8 percent, an increase compared to the 2017 estimate of 4.6 percent.
The level of strong domestic demand remains one of the main strengths of developing economies. Improvements in commodity prices and global demand helped boost growth on the external side. Based on the development of the world economy, and supported by internal improvements and development programs in the country, Indonesia's economic growth in 2018 is projected to reach 5.4 percent.
Indonesia's economic growth is expected to increase, supported by government programs to continue fiscal policies that can optimize state revenues, while still creating an investment climate and encouraging the development of the business world, improving services to the community, and preserving the environment.
A. Prospects for Defense Industry Growth
1. The current defense and security capability is faced with a situation of lack of numbers and unpreparedness of defense equipment and other major tools, if no attempt is made to accelerate replacement, improvement and strengthening, it is potentially difficult to enforce sovereignty
country, nation saving, and maintaining territorial integrity in the future.
2. The occurrence of systemic weaknesses in the reserve component and defense support which constitute prerequisite for the functioning of the universal defense system. Further efforts in industrial development National defense needs the support of various groups in order to create independence of the TNI defense equipment and the main tools (Alut) of the National Police coupled with the further arrangement of the pattern of interaction between the TNI and Polri in relation to the implementation of their respective duties and authorities.
3. The 2015-2019 RPJMN in the field of defense and security carries aligned strategic issues namely enhancing national security and defense and stability capacity. The strategic issue is then translated into 7 (seven) strategic issues in the next 5 (five) years. One of the sub-issues is the problem of TNI defense equipment and Almatsus National Police and the empowerment of the defense industry.
4. The Working Cabinet Government is committed to increasing the defense budget to 1.5 percent of GDP within a period of 5 (five) years.
5. Legislation relating to the alpalhankam procurement sector has been ratified, namely Law No. 16 of 2012 concerning Defense industry. This law is the basis for the development of the defense industry to meet the needs of military and police equipment.
6. In an effort to strengthen the empowerment of the defense industry in the 2015-2019 period, KKIP established a number of national defense industry priority programs, one of which was: the development of propellant / munitions industry, national rocket development, national missile development, national radar development, and medium tank development.
7. In order to achieve the achievement of the 2015-2019 defense and security development targets, the development policy for the Defense and Security sector that will be carried out is a development policy strategy to achieve the fulfillment of TNI Alutsista and National Police Almatsus targets supported by the defense industry.
These strategies include:
• Alpalhan TNI procurement
• Increased preparedness of the 2015-2019 TNI Alutsista
(in line with the increase in the number of defense equipment
who will arrive)
• National Police Alpalkam procurement
• Increasing the role of the internal defense industry
country (defense equipment production and maintenance)
• Increased research collaboration and
development and engineering between
Government - Higher Education R & D Institutions
- Industry
8. SOEs in the strategic defense sector will be developed to realize a healthy, competitive defense industry and capable of being the main guide to defense equipment
security (alpalhankam), such as explosives, aircraft, weapons and munitions.
B. Prospects for Industrial Product Growth
1. Mining Industry
Two main targets for increasing the competitiveness of mineral and mining commodities will be achieved
within the 2015-2019 period are:
a. Increased value added of mineral and mining commodities in the country: (1) Facilitation
construction of 30 (thirty) smelter companies, and (2) capacity building
mineral processing amounting to: (i) 18.7 Million Tons of nickel ore; (ii) iron ore 16.6 million tons; (iii) ore
bauxite 30 million tons; (iv) manganese ore 0.6 million tons; (v) 2.9 million tons of copper concentrate.
b. The implementation of mining activities that meet technical and environmental requirements
(sustainable mining) both for large companies and people mining. (Source: Book I
RPJMN 2015-2019 pp. 6-124)
2. Railway Industry
a. Construction of the Trans Kalimantan, Sulawesi and Papua trains and the completion of the Trans Sumatra railroad. In addition, the increase in the capacity of the existing lanes becomes a double lane in Sumatra and Java, especially in the southern part of Java
b. The target for the construction of the railway in 2019 is 8,692 km
c. The government's policy direction and strategy in accelerating the development of the Multimodal transportation system include the construction of railroad access to international ports and airports.
3. Shipping Industry
a. Marine development in the 2015-2019 RJPMN is one of the targets is the realization of the Sea Toll Road.
b. Increased capacity of 24 ports to support sea tolls consisting of 5 hub ports and 19 feeder ports. The port which is a marine toll hub consists of Belawan / Kuala Tanjung Port, Tanjung Priok, Tanjung Perak, Makassar and Bitung.
4. Indonesia's Energy Industry
a. The 2015-2019 strategy and action plan in order to support the policy of increasing energy infrastructure, related to electricity, included a power plant project of 42.9 GW consisting of new projects of 35.5 GW and ongoing projects of 7.4 GW b. Construction of 201 segment of city gas network (Jargas) in 2015-2019, of which 10 segments use APBN funding and the rest are BUMN
5. Manufacturing Industry
a. Global geoeconomic conditions indicate that the non-energy commodity price index is expected to experience a relatively constant increase. On the other hand, prices for manufactured products will increase from 109 in 2015 to 115.4 in 2019 b. Commodity prices are generally expected to decline, but manufacturing product prices are in an upward trend.
6. Construction Industry
a. In order to improve national connectivity will be achieved through the strategy of new road construction, bridge construction of 29,859 meters, replacement of bridges along 19,951 meters, and regional road support for regional development.
