In the 1980s, the Indonesian government aggressively promoted the technology transfer program, and at this time the idea to change the status of Pindad to be a limited company was emerged. Based on the Decree of President of Republic of Indonesia No. 47 of 1981, Badan Pengkajian Penerapan Teknologi or BPPT (Agency for the Assessment and Application of Technology) that has been established since 1978 should pay more attention towards the technology transformation process applied by the Indonesian government, including the procurement of the machinery for the industrial needs.

The status change of Pindad was motivated by the limited ability of Pindad as an industry since it was attached to the regulations and the economic dependence on the budget of Dephankam. This was the reason why it could not develop its production activities. In addition, Pindad was also deemed as a burden to Dephankam because of the high cost for research and development as well as the big investment. Therefore, Dephankam suggested the separation between war making activities and war support activities. Pindad’s activities in producing infrastructure and military equipment was a part of the war support activities which must be separated from Dephankam and became a limited company which the stock was owned by the Indonesian government.

The signing of the handover of the management of Industry of the TNI-AD (Pindad) from Indonesian Army Chief of Staff (TNI) Gen. Rudini to Prof. Dr. B.J. Habibie on April 29th, 1983

The head of BPPT at that time, Prof. DR. Ing. B.J. Habibie, then formed Pindad Corporate Plan Team based on a BPPT Decree No. SL/084/KA/BPPT/VI/1981. The Corporate Plan was led directly by Habibie and consisted of BPPT and Dephankam representatives.

As a company, Pindad was expected to be able to produce the needed military equipment efficiently and to produce business oriented commercial products. Furthermore, it was expected to have its own fund and budget for the development, research and investment, as well as to develop its industrial professionalism.

Based on the review of the Corporate Plan Team, it was concluded that Pindad’s production composition was 20% on military products and 80% on commercial or non-military products. The main task of Pindad was to provide and produce the products needed by Dephankam such as light munitions, heavy munitions and other military equipment to eradicate the dependence to other parties. The second main task was to produce commercial products such as tools machines, forging products, air brake system as well as custom-order tools and equipment.

On April 29th, 1983, the Perindustrian Angkatan Darat officially changed its status from an institution previously under the auspices of the Ministry of Defense and Security to a Limited Liability Company (PT), with a new name as PT. Pindad (Persero). The word Pindad behind the word PT is not an abbreviation, it stands fully as a name. the Minister of Finance appointed Prof. Dr. Ing. B.J Habibie as the President Director of Pindad. April 29th, 1983 is commemorated as Pindad's birthday.