Erick Thohir: Defend ID Must Be Able To Strengthen The National Defense Ecosystem

Indonesian President Joko Widodo (Jokowi), Defense Minister Prabowo, and SOE Minister Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir positively welcomed the launch of the defense industry BUMN holding or Defend ID. He asked that the presence of Defend ID should be able to strengthen the national defense ecosystem.

"Holding the defense industry must be able to strengthen the national defense ecosystem, not only with members of the holding, but also in cooperation with other SOEs and the TNI," he said in an official statement, Wednesday, April 20.

Erick also encouraged PT Len Industri (Persero) as the holding company to be able to organize the transformation of members of the defense industry holding in order to realize good corporate governance.

This includes building harmony among holding members in the financial, marketing, operational, and management portfolio sectors.

Furthermore, Erick asked the defense industry holding, consisting of PT Dirgantara Indonesia, PT PAL Indonesia, PT Pindad, and PT Dahana, to begin preparing strategic steps. He wants the establishment of a holding to be able to minimize the overlapping business focus of each member of the holding.

"As the holding company, Len has a big role in realizing integration with the three TNI dimensions, both land, sea and air," said Erick.

On that occasion, Erick also signed a memorandum of understanding or MoU with Defense Minister Prabowo regarding the commitment to increase the TKDN value to 50 percent.

"This TKDN commitment is a must for every member of the holding. This is a concrete step in building the independence of our defense industry going forward," said Erick.

For your information, the Defense Industry BUMN holding named Defend ID has just been inaugurated. The launch of this holding is part of the government's efforts to build and support the establishment of holding companies for companies engaged in the defense industry.