Ministry Of Defense: Indonesia Signs IDR 2.24 Trillion Contract To Buy Domestic Defense Products

Photo: Doc. Antara

JAKARTA - The Ministry of Defense (Kemenhan) signed a contract worth IDR 2.24 trillion to buy domestic products at the 2024 Business Matching exhibition held by the Ministry of Industry in Denpasar, Bali.

"The contract between the Ministry of Defense and PT Len and PT Pindad is IDR 2.24 trillion from the total Ministry of Defense budget of IDR 9 trillion," said Minister of Industry (Menperin) Agus Gumiwang at the close of Business Matching 2024 in Sanur, Denpasar, Bali, quoted from Antara, Thursday, March 7.

The Minister of Industry witnessed firsthand the signing of the contract between the Ministry of Defense and the two SOEs on the sidelines of the exhibition for spending on domestic products on Tuesday (5/3).

Based on data presented on the sidelines of signing the contract, the contract value for the Organizational Unit (UO) of the Defense Equipment Center (Pus Alpalhan) at the Defense Facilities Agency (Burahan) of the Ministry of Defense with SOEs, PT Len Industri (Persero) reached Rp335 billion.

In addition, the Ministry of Defense's Baranahan contract with state-owned PT Pindad amounted to Rp1.90 trillion.

Minister of Industry Agus Gumiwang explained the domestic product expenditure contract with the two SOEs, namely for the procurement of ammunition, weapons, combat vehicles, and tactical vehicles as well as defense and security equipment systems (Alpalhankam).

The Ministry of Defense is one of the ministries/agencies that realized local product spending during Business Matching 2024 in Bali with the products presented at the 182 exhibition booths already pocketing the Domestic Component Level Certificate (TKDN).

There was also a total realization during the exhibition which brought together the budget owner and producer 4-7 March, reaching Rp213 trillion, or an increase compared to the 2023 implementation reaching Rp181 trillion.

The Ministry of Industry noted that the realization was the largest purchased by ministries/agencies and local governments to reach Rp. 146.94 trillion and from SOEs it reached Rp. 66.74 trillion.

Meanwhile, the value of commitments that are ready to be realized by budget owners (the central/regional government) to producers this year has also increased to Rp1,148.25 trillion compared to 2023, reaching Rp1,157 trillion.

Agus Gumiwang also asked the budget owner to immediately provide details on the needs of domestic products so that producers can prepare them.