I. Introduction
As
a sovereign State, Indonesia protects its sovereignty from threats. To maintain
sovereignty, Indonesia has a strong enough army. The armed forces are equipped
with adequate weapons. In fact, Indonesia has been able to meet the need for
defense equipment by producing its own. The production of weaponry in Indonesia
is carried out by one of the State-Owned Enterprises (SOEs).
The
SOEs that produce weaponry is involved in the production of weapons, munitions,
combat vehicles, and defense system equipment and security, as well as the
production of industrial components. The types of defense equipment produced domestically
are metallic components, manufacture of weapons, and combat vehicles (PT
Pindad, 2016).
Preparation
of metallic components process consists of producing a shell of a bullet for caliber
5.56 mm to 12.7 mm; projectiles for caliber 5.56 mm to 12.7 mm; and primary
component including primary boxer. The pyrotechnic process that consists of
primary composition; pyrotechnic composition for instance smoke, tears, and bullets;
and high explosive composition. Also preparation and assembly of munitions for
large caliber, small caliber clerk, and rocket system. Ballistic test
facilities from 25 to 1000m, speed test, high-pressure test, and accuracy test.
For
weapons manufacture, a lot of weapons and defense equipment have been produced
includes the ability to produce long barrel guns, and hand-held weapons. The
detail producing process and the weapon have been produced are as follows (PT
Pindad, 2016):
1.
swaging
process for barrel making,
2.
broaching
process to create the hole of the magazine,
3.
machining
process for components such as mechanical homes, pistols, gas blocks, closures,
pen and other components,
4.
process
stamping, blanking and forming like making the magazine, SS1 mechanical homes,
hand protective plate and dust cover,
5.
welding
process,
6.
metal
injection molding includes the process for the manufacture of precision small
parts shaped like spanking, triggers, pistol holders, and hook of pistols,
7.
surface
and heat treatment processes such as chroming, hard anodizing, painting, and
heat treatment processes include vacuum, induction, and temper harden,
8.
long
run barrel assembly process, hand-held weapon, and heavy weapon,
9.
testing
processes such as material testing (spectrometer and Hardness Vickers);
dimension test (projector profile, height master, and gauges) and ship auction
(rate of fire, shoot down, and gun function test),
Despite
producing weapons, the SOE also has been produced combat vehicle type 6x6,
combat vehicles type 4x4 and combat vehicles canon. In producing combat
vehicles, carried out through the production process as follows:
1.
Hull
fabrication process, whether using armored steel, aluminum, or high hardness
steel. The entire production process requires a special process in production.
2.
Machining
process for fabrication preparation, whether for hull, structural or
sub-component.
3.
The
process of cutting Sheet Steel pattern using Plasma Cutting and Laser Cutting
from CAD drawing.
4.
Rolling
welding jig, for the perfection of vehicle hull welding process especially for
the gravity counter welding process.
5.
Shoot
blasting the system, competence to clean material from contamination that may
interfere with the fabrication process. Used also for the cleaning process of
the hull as preparation for painting.
6.
Rolling
dynamometer, competence testing of indoor vehicle performance by using the
static equipment.
7.
Internal
test field used to conduct internal testing related to vehicle performance.
8.
Crane
facilities with 5, 10, 15 and 25 tons, for vehicle assembling process.
9.
Leak
test facility for both rainfall and fording.
10.
Special
painting facilities, with Indonesian military standard competence.
II. Indonesia’s
Initiative in Defense Equipment
Given
the importance of the defense equipment industry and production capabilities
that have been done by SOEs, the Government of Indonesia expects SOEs engaged
in arms production and support the Government Program, especially in the
Revitalization of Defense Industry. The support through the planning of a
transformation program that can improve the competitiveness of the company, capturing
as much as possible opportunities in Minimum Essential Force (MEF) Program and
able to compete in international markets, both for defense equipment products
and industrial products.
The
huge potential of defense equipment market provides a great opportunity for
SOEs to continue to produce weaponry equipment. The market potential,
especially for defense equipment products, can be seen from domestic basic
needs which still can not be fulfilled entirely by SOE. When associated with
defense independence, the fulfillment of MEF is ideally met by the domestic
defense industry. Thus, the fulfillment of MEF through the realization of
defense independence depends on the production capacity owned by SOEs.
To
meet the need for weaponry, the Government of Indonesia should be able to
develop the industry that has been done by SOEs. The purpose of the development
of domestic defense equipment industry is the ability of technology in the
defense industry can be used for various industries. So the whole production process
should be more commercial. If only concentrate in the defense industry, hence
the ability of research and development will be low. The development of
non-defense equipment products by SOEs aims to transfer the use of foreign
products with domestic products or import substitution.
In
addition to the weaponry industry, SOEs have also been able to produce
explosives. Thus, the business of commercial explosives by SOEs needs to be
developed because the market potential is huge. Explosive Industrial Market
inside the country is estimated to be around 7.56 trillion Rupiahs per year. In
addition, the Company is licensed as a producer and distributor Commercial
explosives only 9 companies. Whereas 24% is controlled by companies that join
with foreign companies (Directorate General of State Assets Management, 2016).
To
improve business competitiveness in the field of commercial explosives business
strategy needs to be done are (Indonesia Ministry of Finance, 2016):
1.
Establish
commercial production of explosive capabilities both on a regular basis
Independent and working with strategic partners. The products to be built are a
bulk emulsion, packaged emulsion, electric detonator, nonelectric detonator,
electronic detonator, and booster. This is done in the context of import
substitution or local content program.
2.
Build
capability in large-scale blasting services for coal, metals and quarry mining,
both for open pit and underground mining by recruiting human resources with
competence and experience in the required fields and working with experts in
the required fields.
3.
Establish
business cooperation in the form of Joint Operation that has experience in the
commercial explosive industry.
Currently,
SOE are experiencing production facing problems that production machines have
not fulfilled the ideal capacity despite already done line balancing to restore
the initial capacity. So it is necessary to build the new production line for
the defense equipment product expected to be used to support industrial product
development from an extensive production on sector:
1.
Development
and repair of the production line, which can be done through the construction
of large caliber and rocket caliber production line.
2.
Development
of tank and combat vehicles production line.
3.
Automation
of small caliber munition production line.
4.
Improvement
of weapons production line.
Industrial
products business development is expected as a balancer and supporter of
defense equipment products. The initial process that needs to be addressed is
building the ability to increase the production capacity of existing products
as well as build new product lines to capture potential markets. The production
capability for industrial products can be supported by existing production
facilities in the defense equipment production line. Industrial products business
development among others through the development of industrial explosives business;
business development facilities and infrastructure transport and development facilities
and product development process and learning center.
As
a step towards a company with high technological capabilities as well as a
reputation to be built that SOEs as the center of development of defense
equipment and strategic industry, then this program is very important to do.
Going forward the company will have sufficient facilities to conduct research
and development in creating new products. In addition, the company will change
the concept of education and training that tend to become a conventional
learning center with teaching methods in the form of a non-conventional
learning process. Program development of product development facility through improvement
of product development facility and modernization of training and education center.
III. Conclusions
Based
on the description of market conditions, it can be summed up as follows:
1.
The
enormous market of defense products is related to the MEF program, so the
business focus that needs to be achieved is related to the security products.
2.
Currently,
there is a gap between the needs of the MEF program with the production
capacity of the Munitions, hence capacity building is needed.
3.
The
potential of the commercial market in explosives product is very wide,
especially for the mining industry. It is necessary to get special attention in
order to fulfill the market.
4.
To
run the company's plan mentioned above, the company needs fund from the
government for development and repair of defense equipment production line.
Writers: Hendro Nugroho and Robi’ul Atri Duha, Seksi Informasi, Bidang Kepatuhan Internal, Hukum dan Informasi, Kantor Wilayah DJKN Sulawesi Selatan, Tenggara, dan Barat
References
(n.d.). Retrieved from PT Pindad, Indonesia's SOE
defense equipment producers: https://www.pindad.com/
(n.d.). Retrieved
from Directorate General of State Assets Management, Indonesia Ministry of
Finance: http://www.djkn.kemenkeu.go.id/
(n.d.). Retrieved
from Indonesia Ministry of Finance: https://www.kemenkeu.go.id/