By exempting the main armament system from import duties, Indonesian-made armaments would be cheaper than those of other countries.
Jakarta (ANTARA News) - The Defense Ministry has proposed that raw materials for the production of armaments be exempted from import duties to support the National Defense Force (TNI)`s main armament system.

"We want nil-percent import duties. But any import of raw materials for armaments to support the military`s main armament system must secure recommendations from the Defense Ministry. Otherwise, the import can be abused," Deputy Defense Minister Sjafrie Sjamsoeddin said here on Tuesday.

By exempting the main armament system from import duties, Indonesian-made armaments would be cheaper than those of other countries, he said after a seminar on steel industry in the face of revitalized strategic industries of which he was a keynote speaker.

"But this does not mean that our armaments will be of low or bad quality. The price of our armaments will be competitive or lower abroad but they are of higher quality because we have to test the capacity of our competitors first. We will be able to surpass our competitors," he said.

In this connection, he said the defense ministry had issued recommendations to state firms engaged in the production of main armament system, such as shipbuilder PT PAL, arms manufacturer PT Pindad and aircraft maker PT Dirgantara Indonesia.

The deputy defense minister further underscored the need for the country to expand the steel industry in support of the combat vehicle industry.

He said the government, producers and users alike must be committed to supporting any effort to accelerate the development of the domestic defense industry.

For its part, PT Pindad had signed a memorandum of understanding with state steel maker PT Krakatau Steel to supply steel for the production of armored vehicles, he said.

"There has also been cooperation between PT PAL and PT Krakatau Steel to supply steel sheets for the production of Indonesian warships," he said.(*)

Editor: Heru Purwanto
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