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  • Home
  • About RSIS
      • Introduction
      • Building the Foundations
      • Welcome Message
      • Board of Governors
      • Staff Profiles
        • Executive Deputy Chairman’s Office
        • Dean’s Office
        • Management
        • Distinguished Fellows
        • Faculty and Research
        • Associate Research Fellows, Senior Analysts and Research Analysts
        • Visiting Fellows
        • Adjunct Fellows
        • Administrative Staff
      • Honours and Awards for RSIS Staff and Students
      • RSIS Endowment Fund
      • Endowed Professorships
      • Career Opportunities
      • Getting to RSIS
  • Research
      • Research Centres
        • Centre for Multilateralism Studies (CMS)
        • Centre for Non-Traditional Security Studies (NTS Centre)
        • Centre of Excellence for National Security (CENS)
        • Institute of Defence and Strategic Studies (IDSS)
        • International Centre for Political Violence and Terrorism Research (ICPVTR)
      • Research Programmes
        • National Security Studies Programme (NSSP)
        • Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
      • Future Issues and Technology Cluster
      • [email protected] Newsletter
      • Other Research
        • Science and Technology Studies Programme (STSP) (2017-2020)
  • Graduate Education
      • Graduate Programmes Office
      • Overview
      • MSc (Asian Studies)
      • MSc (International Political Economy)
      • MSc (International Relations)
      • MSc (Strategic Studies)
      • NTU-Warwick Double Masters Programme
      • PhD Programme
      • Exchange Partners and Programmes
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      • Financial Assistance
      • Meet the Admissions Team: Information Sessions and other events
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      • Asia-Pacific Programme for Senior Military Officers (APPSMO)
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        • Counter Terrorist Trends and Analyses
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        • RSIS Publications for the Year
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        • Edited Books
        • Chapters in Edited Books
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        • External Publications for the Year
      • Policy-relevant Articles Given RSIS Award
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    • RSIS
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    • Indonesia’s Emerging Defence Economy: The Defence Industry Law and its Implications
    • Annual Reviews
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    Indonesia’s Emerging Defence Economy: The Defence Industry Law and its Implications
    Indonesia Programme

    12 August 2013

    download pdf

    Abstract

    This paper examines the impact of the Defence Industry Law (UU No.16 2012 on Defence Industry) and its implications on the development of Indonesia’s Defence Industry. Currently the 16th largest economy in the world and capitalizing on its growing economy, Indonesia is ready to reinvigorate and modernize its defence industry. In this regard, the Defence Industry law is vital primarily because it functions as a guideline in steering the direction and setting the goals that Indonesia wants to achieve in developing its own defence industrial base. Several steps are required to ensure the smooth implementation of the law: first, the establishment of a strong and clear implementation mechanism that cover clear goals with definite timelines allowing for accountability and full adherence of the law; second, a commitment to reducing the gap between proposed and actual budgets; third, the need to take steps to ensure policy complementarily as a supportive and operational gesture; fourth, the assurance of policy harmonization between stakeholders; and fifth, the need to exercise greater openness and flexibility with regard to international opportunities in the arena of defence industry cooperation. This paper concludes that a healthy development of local industry, technological vibrancy and absorptive capability in Indonesia has to be supported by a more practical, robust, and flexible policy, along with promoting transparency and eradicating corruption.

    Categories: Policy Reports / Country and Region Studies / International Politics and Security / Southeast Asia and ASEAN

    Last updated on 27/10/2014

    Abstract

    This paper examines the impact of the Defence Industry Law (UU No.16 2012 on Defence Industry) and its implications on the development of Indonesia’s Defence Industry. Currently the 16th largest economy in the world and capitalizing on its growing economy, Indonesia is ready to reinvigorate and modernize its defence industry. In this regard, the Defence Industry law is vital primarily because it functions as a guideline in steering the direction and setting the goals that Indonesia wants to achieve in developing its own defence industrial base. Several steps are required to ensure the smooth implementation of the law: first, the establishment of a strong and clear implementation mechanism that cover clear goals with definite timelines allowing for accountability and full adherence of the law; second, a commitment to reducing the gap between proposed and actual budgets; third, the need to take steps to ensure policy complementarily as a supportive and operational gesture; fourth, the assurance of policy harmonization between stakeholders; and fifth, the need to exercise greater openness and flexibility with regard to international opportunities in the arena of defence industry cooperation. This paper concludes that a healthy development of local industry, technological vibrancy and absorptive capability in Indonesia has to be supported by a more practical, robust, and flexible policy, along with promoting transparency and eradicating corruption.

    Categories: Policy Reports / Country and Region Studies / International Politics and Security

    Last updated on 27/10/2014

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    Latest Book
    Indonesia’s Emerging Defence Economy: The Defence Industry Law and its Implications

    Abstract

    This paper examines the impact of the Defence Industry Law (UU No.16 2012 on Defence Industry) and its implications on the development of Indonesia’s D ...
    more info