Jakarta (ANTARA News) - Indonesia is to increasingly rely on domestic sources for military hardware and preparing the required law for realizing the plan, according to Deputy Defense Minister Sjafrie Sjamsoeddin.

Sjamsoeddin revealed Indonesia`s plan to procure more military hardware domestically in a seminar on the revitalization of the national strategic industry held in Jakarta, on Tuesday, held by ANTARA News Agency. ANTARA President Director Akhmad Mukhlis Yusuf opened the seminar.

The seminar also featured speakers Tubagus Hasanuddin, the House of Representatives Commission I Deputy Chairman, PT Krakatau Steel President Director Fazwar Bujang, defense analyst Connie Rahakundini Bakrie of Indonesia University and Bank BNI chief economist Ryan Kiryanto.

Sjamsoeddin said that Indonesia had started the move by producing the Anoa armored personnel carrier in the last five years using domestic know-how although still equipped with imported engines.

He also said that the country would soon retrofit some 400 tanks and refurbish them with new technologies and equipment. This step is a pre-cursor to full-pledged national production of tanks by the country.

Responding to questions from newsmen after the seminar, Sjamsoeddin said that the Defense Ministry had asked for the elimination of all import duties for raw materials for armaments in supporting the provision of Indonesian defense force (TNI)`s main armament system.

The elimination of import duties for armament raw materials, he added, would make Indonesian-made main armament system cheaper to procure.

Hasanuddin, a retired major general, said that the government must throw its weight behind the development of the national steel industry, in particular when the industry is expected to play an important role in the production of military hardware.

"National steel production must be quickly augmented so that it could be expected to be able to support the development of strategic industries," said Hasanuddin who added that the banking sector might also be needed to participate in the effort.

Krakatau Steel head Bujang said that the Indonesia`s main steel maker is ready to play a pivotal role in supporting the revitalization program of the national strategic industries. "We are ready to supply and develop special steel required by the defense industry," he said.

Krakatau Steel, a listed state-owned corporation, produces 5.75 million tons of crude steel annually and plans to increase production to 8.75 million tons of crude steel by 2018.

Bujang said Krakatau Steel has been closely cooperating with national military hardware makers, including PT Pindad in the production of Anoa armored personnel carriers which are used by the Indonesian army (TNI-AD).
(Uu.H-YH/HAJM/S012)

Editor: Priyambodo RH
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