Pindad Cooperate With Waterbury In The Field Of Ammunition

PT Pindad (Persero) established a strategic partnership agreement in the field of ammunition with Waterbury Farrel, one of the Divisions of Magnum Integrated Technologies Inc. Pindad Chief Executive Officer,  Abraham Mose and Waterbury Farrel President & CEO, Andre Nazarian sign the agreement on October 11, 2018 at Inaya Hotel, Nusa Dua, Bali.

Chief Executive Officer (CEO) of PT Pindad (Persero) Abraham Mose in the IMF-WB 2018 event  said that the scheme of Pindad investment was to conduct a strategic partnership with Waterbury Farrel with an investmenr of US $ 100 Million for the construction of small caliber ammunition plants.

"The cooperation will use Build Operate Transfer (BOT) scheme, hopefully by end of 2019 we will reach production capacity 350 million rounds per year, It is still below the needs of TNI-POLRI approximately 500 million rounds per year," said Abraham.

Abraham explained that Pindad's capability to produce 350 million rounds per year can increase Pindad's revenue of Rp 1.4 trillion per year and subtitute the import of ammunition around Rp 342 billion per year.

The signing of the MoU coincides with the world's largest international meeting on the economic and financial fields, the 2018 IMF & WBG Annual Meetings that held in Indonesia.

The purpose of this partnership is to build production line of small calibre ammunition facility based in Indonesia, Jointly develop a business program in the field of ammunition according to Law Number 16 Year 2012 to fulfill the needs of Indonesian army and build capability and independency of Indonesian defence industry in the future, To the greatest extent possible within its operating constraints, ensure that the Program shall make Indonesia self-reliant (fully autonomous) in the delivery and maintain the quality of products and process of Ammunition capability, and Undertake a process of staged but progressive business and industrial development, in order to create an internationally competitive ammunition business in Indonesia and furthermore to enter into export sales worldwide.

The implementation of the cooperation shall be based on Pindad's main contribution to provide manufacturing areas and skilled workforce, while  Waterbury shall provide the ammunition production lines, Guarantee to produce high quality products and competitive prices for Indonesian and  international market.

Waterbury shall also provide Advanced technologies and processes, turn-key solutions, and Assist in developing strong Global sales and marketing network.

Both companies will combine their capabilities in this partnership, and together seek investors who are in line with pindad's needs and Waterbury builds this Long-term program.

This collaboration is expected to improve the quality and quantity of both ammunition and Pindad's manufacturing capabilities in order to compete with the global market. Ammunition that will be produced is small caliber munitions which can be used for pistols and shotgun weapons.

Waterbury itself is a leading industry and provider of complete ammunition and rolling mill manufacturers, has expertise in metal forming equipment, rolling and defense industry products, has more than 160 years of expertise and experience worldwide.

PT Pindad (Persero):

PT Pindad as a state-owned limited liability company was formed in 1983. A company whose historical roots have been established since the Dutch colonial era, actively produces various defense equipment for the needs of the TNI, and has also exported a number of superior products such as ammunition, weapons and combat vehicles to the global market. Pindad also have SPR2 Sniper rifle, an anti-material gun that has high precision and range of up to 2 km. This weapon has won the BPPT Innovation Award 2018 on August 8, 2018 for innovation in defense and security technology.

In addition to producing defense equipment, PT Pindad also has a Directorate that produces industrial machinery and heavy equipment such as excavators, railroad hooks, traction motors, generators, tractors and marine cranes. Through product innovations and strategic partnership, Medium Tanks have passed the test from Dislitbangad include mine blast tests, mobility, performance and firing tests.

For further information, please contact:

Corporate Secretary, Tuning Rudyati

E-mail: tuning@pindad.com