PT Pindad's Strategy towards Defense Industry Independence

Abstract

In order to realize defense and security in accordance with the times, Indonesia is obliged to produce the main weapons system equipment independently. The target of achieving the minimum essential force (MEF) has an impact on the development of the domestic defense industry. Government policy regulations related to the defense industry and the development of defense human resources have been regulated in Law Number 16 of 2012 concerning the Defense Industry. This research was carried out through descriptive qualitative studies, literature study techniques sourced from books, journals, and national data. This study describes an analysis of the constraints faced by PT Pindad in an effort to become self-reliant in the defense industry. The transfer of technology process carried out by PT Pindad encountered obstacles such as the availability of company technology and a very short time in meeting the Minimum Essential Force (MEF) III target. Based on the capabilities of its resources, to prove that the Indonesian defense industry is able to compete with other countries' defense industries, PT Pindad has several grand strategies which include efforts to optimize the use of fixed assets and increase product sales, increase profitability, and increase working capital.