Deputy Minister Tiko: Pindad Becomes A National Manufacturing Industrialization Driver

Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo. (Photo: Doc. Ministry of SOEs)

Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo said the defense industry is not just a strategic need, but also an important pillar of economic development.

Therefore, Tiko, as he is familiarly called, said that PT Pindad (Persero) plays an important role in strengthening Indonesia's defense system, as well as driving the national manufacturing industrialization motor.

This was conveyed during a working visit to the PT Pindad (Persero) facility in Bandung as part of efforts to strengthen the position of SOEs in encouraging the national defense industry to be independent and globally competitive.

"Large countries such as the United States, France, and China place the defense industry as the main contributors to their economy. Indonesia needs to move in the same direction," he said in an official statement, Thursday, August 7.

Tiko revealed that the Indonesian government is accelerating to catch up in strengthening military capabilities, especially in responding to regional geopolitical challenges. Defense spending is targeted to reach 1.3 to 1.6 percent of GDP.

In the past we saw defense as a sector at the back. But today, in the midst of global challenges after COVID-19, the Ukraine conflict, and regional tensions, defense has become a basic need equivalent to food, clothing and clothing," he said.

Karena itu, Tiko menilai pengembangan rantai pasok industri pertahanan akan turut mendorong pertumbuhan industri baja, ban, komponen, hingga elektronik.

Ia juga menekankan pentingnya kolaborasi antar BUMN dalam membangun supply chain baja untuk keperluan pertahanan.

“Tiga sektor manufaktur yang saat ini menjadi fokus Kementerian BUMN adalah industri pertahanan, perkeretaapian, dan baterai. Ketiganya menjadi lokomotif baru industrialisasi nasional. Pindad menempati posisi sentral dalam strategi ini, sebagai sektor strategis, pelopor adopsi teknologi, dan penggerak ekosistem manufaktur nasional,” tegasnya.

Therefore, Tiko assesses that the development of the supply chain of the defense industry will contribute to the growth of the steel, tires, components, and electronics industries.

He also emphasized the importance of collaboration between SOEs in building a steel supply chain for defense purposes.

The three manufacturing sectors that are currently the focus of the Ministry of SOEs are the defense, railway and battery industries. The three of them are the new locomotive of national industrialization. Pindad occupies a central position in this strategy, as a strategic sector, a pioneer of technology adoption, and driving the national manufacturing ecosystem," he said.