Commemorating Harkitnas, ready to create Defense Industry holding

PRESS CONFERENCE

Defense Industry SOEs Cluster

No. 04/V/2021/defendID

Commemorating Harkitnas, READY to Rise to Defense Industry Holding Realization

Bandung, May 20, 2021. The momentum of the 2021 National Resurgence Day (Harkitnas) we shared a space for Defense Industry SOEs to strengthen the acceleration steps to realize the Defense Industry SOEs Holding. SIAP (Align, Integrate, Accelerate, Ensure) is the defense industry’s provision to do so. This is also the answer to various challenges and potential defense threats against Indonesia.

In order to maintain sovereignty, Indonesia requires the readiness of Defense and Security Equipment Tools (Alpalhankam). Until now, Indonesia is heading for a 100% essential force in 2024. On the other hand, the defense industry is facing various problems such as limited fiscal support from the government, limited long-term demand, limited synergy and alignment between SOEs, and minimal research and development costs.

According to PT Len Industri (Persero) President Director Bobby Rasyidin, SOEs Holding can accelerate the independence of the Defense Industry by aligning the strategic roadmap for the development of the SOEs defense industry with the government and users, changing paradigm of defense spending into defense investment, integrating supply chain synergies in the Defense Industry in increasing local content, elevating the advantages of dual use of technology-based solutions and maximizing opportunities to become part of the world-class defense industry global supply chain.

PT Len Industri (Persero) was appointed as the holding parent of the Defense Industry SOEs Holding considering the trend of future war defense based in the C5ISR network centric warfare, as well as the ability to integrate technology from each defense dimension, and Len Industri’s experience as the mother company for its subsidiary.

“Holding the Defense Industry applies Industrial Technology 4.0. Investment in digitizing business processes will result in production efficiency that increases service guarantees to users in fulfilling the quality and timeliness of orders,” said Bobby Rasyidin, President Director of PT Len Industri (Persero) in Bandung (20/05).

Bobby exemplified, digitizing business process for operational excellence, including Human Capital Management System, Production Process Automation (smart factory), Application of Artificial Intelligence, SAP Integration and Supplier Management and e-Proc. SOEs that are members of the Defense Industy Holding include PT Len Industri (Persero) which focuses on the C5ISR Platform along with MRO and 3-dimensional integration solutions (interoperability) through Network Centric Warfare. PT Pindad (Persero) with a focus on land-based platforms, MRO and the provision of weapons and munitions, PT Dirgantara Indonesia (Persero) with a focus on airborne and MRO platforms, PT PAL Indonesia (Persero) with a focus on developing marine and MRO units, and PT DAHANA (Persero) with a focus on product development of energetic materials (explosives) for all dimensions of defense.

Strategic steps to realize the Defense Industry SOEs Holding are continued. In addition to preparing to meet external needs, efforts to build internal solidity are also being carried out. “Since July 1, 2020, the Core Values of AKHLAK have become the identity and glue of the SOEs work culture which is the basis for the formation of HR character within SOEs, including in the SOEs Defense Industry. This is supported by the implementation of better corporate governance (GCG) practices,” concluded Bobby Rasyidin.

Harkitnas is a momentum for Indonesia to re-calculate its National Defense and Security forces. The services of the heroes of the National Resurgence Day must be preserved and maintained so that the wealth of Indonesia can be enjoyed by future generations. (*)