Indonesia busca que produzcan armas en su territorio

If the private sector enters the defense industry, the state can be considered economical

Kontan



CSG from the Czech Republic once offered to establish a combat vehicle factory in Indonesia (photo: czdjournal)

KONTAN.CO.ID - JAKARTA. The entry of the private defense industry for investment in Indonesia is considered to have a positive impact. One of them is related to saving state finances. So that the State Revenue and Expenditure Budget (APBN) can focus on financing defense projects.

"This will save state finances because there is no need for dual payments, providing capital for companies and defense projects," said military observer Connie Rahakundini Bakrie when contacted by Kontan.co.id, Monday (12/10).

Connie said that the entry of the private industry will encourage the achievement of defense industry technology. This will be achieved in a short time considering the technology is already owned by the company. "This is because it is possible for the technology to be owned by the national or international private sector but it still requires a lot of purchases," explained Connie.

The defense industry is also seen as an industry that will have a positive impact on Indonesia. Apart from income in taxes, the defense industry will also absorb a lot of workforce.

The Job Creation Act opens opportunities for private-owned companies to enter the defense industry. The broomstick law changes the provisions in Law number 16 of 2012 concerning the Defense Industry.

Previously, Article 52 of Law 16/2012 stated that the capital ownership of the main equipment industry was entirely owned by the state. Based on the Job Creation Law this provision was amended.

In article 52 of the revision of Law 16 of 2012, it is stated that the ownership of capital for the main equipment industry is owned by State-Owned Enterprises / Private-Owned Enterprises which have the approval of the minister who administers the government in the defense sector.