Engaging Indonesia

The nation- President-J Widodo


Head of state and head of government, commander-in-chief of the Indonesian National Armed Forces, and the director of domestic governance, policy-making, and foreign affairs.

 Population of 258 million, 4th most populous nation

 Situated between Indian & Pacific Ocean

Archipelago comprising 13,466 islands

Coastline of 54,716 kilometres

 Sits at South East Asia’s maritime chokepoint- Strait of Malacca

Includes 3 land borders

• § Timor-Leste : 228 kilometres
• § Malaysia : 1,782 kilometres.
• § Papua New Guinea : 820 kilometres 

· Muslim majority nation

· Java comprises half of Indonesia’s population

· largest – and politically dominant – ethnic group are the Javanese.

· Unitary presidential constitutional republic

· Following the resignation of President Suharto in 1998, Indonesian political and governmental structures have undergone major reforms.

• Founding member of ASEAN & G 20

• Economy is the world's 16th largest by nominal GDP and the 8th largest by GDP at PPP.

• Maintained a non aligned position

• Plays active role in Middle East

• Rope walk balance between Washington and Beijing

• Faces dispute with China over Natuna territorial waters

• Separatist movements in Aceh & Papua provinces with armed conflict


Strategic Context


• Lingering tensions and suspicions and unresolved ethnic and territorial disputes pose a serious impediment to expanded intra-ASEAN defense cooperation.


Threat- Indonesia-based Jemaah Islamiyah (JI). other lesser actors include laskar Jihad, hizbullah front, laskar mujahidan, and Islamic Defenders front (fPI), the latter being more in the category of “violent moralists” rather than terrorists.


In the past, there have been international connections with the abu sayyaf group in the Philippines, which included training and funding.


• The key issue, however, is that threat perceptions of China differ—at one end of the spectrum the Philippines perceives the threat as immediate and is seeking to develop an ASEAN consensus in opposition to Chinese assertiveness






Government Set up


• Indonesia is a Republic with Unitary Presidential system

• President is Head of State, Head of Government System and Commander in Chief of Armed forces

• People's Consultative Assembly (MPR) outlines state policies with following

– Peoples Representative Council

– Regional Representative Council

• Army was formed during Indonesian National Revolution

• Indonesian National Armed Forces -Tentara Nasional Indonesia, TNI comprises of

– Army (TNI-AD)

– Navy (TNI-AL)

– Indonesian Marine Corps (Korps Marinir)

– Air Force (TNI-AU).


                                                               Stakeholders in Defence

•Committee of the Defence Industry (KKIP, Komite Kebijakan Industri Pertahanan) chaired by the President is fulcrum of Defence issues.





                                        Bilateral Defense Cooperation Agreement


With Malaysia - Regular joint military exercises , Military information exchanges

•Possible use of each other’s military facilities for maintenance & repair.

With U.S - Regular Joint military exercises

State policy situates the indigenous defence industry within the ambit of other prominent industries and ministries

State continues to be main source of funding by providing safety nets through loan provisions and credit guarantees to banks / financial institution

Market intervention only when necessary, for example by providing preferential tariffs for products and fiscal incentives such as free imports and taxes

•Preference for indigenous evident through obligatory requirements for all stakeholders (government defence and security institutions) within Indonesia to buy and use domestic-made weapon systems

Rigid obligation for local strategic industry engagement in the form of a minimum 85 per cent of countertrade and 35 percent of offset that periodically be increased by 10 percent every 5 years


                                                             Foreign Defence Companies


BAE Systems riding on UK’s expressed willingness to deepen relations with Indonesian counterparts

Daewoo Shipbuilding and Marine Engineering (DSME), a South Korea company, supplying Indonesian Navy three type 209/1200 diesel-electric attack submarines by 2020 – a contract worth US$1.07 billion

Ongoing deal with South Korea for development of KF-X fighter, with viable technology transfers



                                                         Defence Industry in Indonesia


Main Weapon Industry


–PT Dirgantara

–PT Pindad (Perindustrian Angkatan Darat/Indonesia Arms Manufacturer)

–PT Pal Indonesia,

Main Component and Support Industry 

–PT Telekomunikasi (INTI)

–PT Len Industry

Supportive Logistic and spare part Industry


–PT Barata Indonesia

–PT Boma Bisma Indra (BBI)

–PT Dahana

–PT Kereta Api (INKA)


Indonesia’s defense policy is based on four documents: Grand Strategy 2008, Defense Doctrine 2008, Defense Intelligence Estimate 2008 and Defense Posture 2024.


•New Defence policy seeks to create a modern, integrated armed forces that is able to anticipate security challenges in the 21st century.


•Indonesia’s foreign policy is based on doctrine of “one thousand friends, zero enemies”, and “dynamic equilibrium”.

The defense policy represents the defense realism paradigm

Ongoing Military reform seeks to remove obsolete military technologies from Indonesia’s weapons system and implement a modernization program to create a Minimal Essential Force (MEF) by 2024 for Indonesia


•MEF 2024 to serve as transition force until Indonesia is able to initiate a military innovation program that will try to adopt the most advanced military technology to start a revolution in military affairs that will transform TNI into an agile force of the 21st century.


•Mission MEF 2024 supported by budgetary grant of 1% of GDP by 2014 and 2% of GDP by 2020



 Military Modernisation


•Minimal Essential Force MEF 2024 will be mainly DEFENSIVE in nature and rely on forward deployment especially of border divisions, naval patrol, as well as air control

•Beyond MEF 2014, create military capabilities for deployment of OFFENSIVE and provocative forces to Indonesia’s border areas.

•To achieve this force, Indonesia will allocate 2.5-3 percent of GDP each year until this force is established between 2024 and 2029

•Indonesia will implement long-term modernization and arms acquisition programs

To support these programs, 3.5-4 percent of GDP will be allocated to support the defense budget until this force is achieved in 2050


Indonesia has already acquired the following:


Six Russian Sukhoi Su-30MK2s, completing a squadron of advanced air-superiority fighters consisting of sixteen Su-27 SKM and Su-30 MK2 jets, 16 new South Korean-made T-50i jet fighters ,Dozens of F-16 and Su-35 fighters,Advanced Air Defence Systems from Thales,Boeing AH-64 Apache Longbow gunship helicopters,German Leopard Tanks


Country’s 2010 Strategic Defence Plan for MEF 2024 include, albeit unrealistically, 274-ship ‘green-water navy’ ,10 fighter squadrons ,12 new diesel–electric submarines


Indonesian Air Force hopes to start replacement of the F-5 fighters under 2015 to 2020 strategic plan

Air Force (TNI-AU) has several companies that are competing for its fighter jet program.  Rafale F-16 C/D Block 60 etc

The Media in Indonesia

Indonesia has gained a reputation as the social media capital of the world

• Indonesia is among Facebook’s and Twitter’s largest global markets

• Indonesians are amongst most active users of social networking

• Nearly nine out of every 10 internet users in Indonesia regularly use a social network

• Indonesians make an estimated 6 billion views per month on social networks.

• Unsurprisingly, younger people dominate the social media user bases

• 75% of Facebook users in Indonesia access the site via their mobile phone

• Facebook has around 47 million users in Indonesia

• Twitter has close to 30 million users

• Media generally takes a cautious, self-censoring stand

• No constitutional guarantee for a free press

• Now revoked, Press Law 21 of 1982 defined duty of the press as "strengthening national unity and cohesion”

• 1999 Habibie’s liberal press law provided protection for the print media

• According to some observers, Indonesian media is plagued by "envelope journalism", where a payment could be made for a favorable story or for withholding information

• Lembaga Kantor Berita Nasional (National News Agency Institute, LKBN) or ANTARA acts as official news agency

• Other players include Kantorberita Nasional Indonesia (Indonesian National News Bureau, KNI)

Stories that can work

• Low cost acquisitions

• Investments by OEM partners in Indonesian industry

• Partnership with indigenous defense industry

• Defence policy and offshoots

• Business partnerships that support strategic ambitions

Media would be wary of anything that can be stretched to compromising “national unity and cohesion”