To exploit this opportunity, it should access the capabilities of the domestic industry by involving Indonesian colleges and universities.
"There must be an integrated plan for the development of the defence industry in Indonesia to gain the strongest possible support, or else it will come to a halt," Vice President Boediono said when he opened the 5th Forum of Indo Defence Expo 2012, themed "Building a Road Map for Defence Industry: Present and Future", at Kemayoran Jakarta International Expo on Wednesday.
The vice president noted that besides achieving integration with domestic industries, the defence industry should also have partnerships with both local and foreign industries in Indonesia to support its production.
"In many countries, the defence industries make a lot of progress because they are supported by other industries, research and development," the vice president noted.
Further, he said that the Indo Defence Expo 2012 was a good opportunity that would inspire the defence industry to develop faster.
"In addition, the expo is also expected to provide the community with education and information on the progress of national defence," Boediono said.
The vice president, however, pointed out that Indonesia`s military spending was only 0.7 percent of its gross domestic product or far below that of other countries in the world.
According to him, this figure was still very small, compared to the military spending of the US, which was 4.7 percent of its GDP, or even that of Saudi Arabia, which was 10 percent of its GDP.
The vice president noted that that defence industry was a high-profile industry, in view of the large amount of money involved.
Quoting the data on military expenditure for 2011 from the Stockholm International Peace Research Institute, the vice president said US$1,738 billion was spent this year on military purposes.
"This is 2.5 times our GDP, or even 10 times our national budget. This is a very huge amount for products whose number is actually quite small," he said.
Citing statistics, the vice president said Indonesia`s imports of defence equipment were ranked 15th in the world.
"This means we still have a lot of opportunity to place our domestic products and to maximize our defence industry," Boediono said at the opening ceremony of the Indo Defence Expo 2012.
Meanwhile, Defence Minister Purnomo Yusgiantoro said this year`s Indo Defence Expo would promote domestic products and build trade relations with global defence industries.
More than 600 defence-related companies from 50 countries such as Singapore, Russia, Britain, Czech, Germany, Turkey, France, South Korea, Australia, China, Brazil, India, Portugal, Canada, Japan, Spain, Ukraine and Indonesia are taking part in the expo.
Some of the major companies--domestic as well as international--participating in the event are PT Dirgantara Indonesia, PT PAL (the Indonesian state-owned maritime development company), PT Pindad (the Indonesian state-owned defence and security equipment company), PT LEN (the Indonesian state-owned electrical equipment company), Lundin, Lockheed Martin, Damen Schelde Naval Shipbuilding, DSME, EADS, Team Australia, Russian Technologies, Bel Tech Export, SSM, Ukrespecexport, Rheinmetall, and Renault Trucks Defence.
Purnomo noted that the international expo was important to Indonesia, particularly to the Indonesian Ministry of Defence, as a forum for developing understanding and cooperation in military affairs at the regional level, as well as for building strategic and business partnerships.
"For Indonesia, this event is a step towards reinforcing the national defence and security industries," the defence minister said.
In addition to the exhibition, the committee of Indo Defence Expo 2012 has organized courtesy meetings, gala dinners, product presentations and technical seminars.
One of the major highlights of the event will be an aerobatic show by the Jupiter Aerobatic Team (JAT) from Indonesian Air Force, which will feature six KT-1B aircraft and a Pegasus team with a Colobri EC120B helicopter.
A seminar, themed "Empowering Indonesia`s Defence Industry for Modernization", will be hosted by the Centre for National Security Studies (CNSS) and feature industry speakers from across the world.
The exhibition has been designed to accommodate more than 20,000 visitors, in addition to participants from the defence industry.
In early October 2012, the House of Representatives unanimously passed the Defence Industry Law, setting the stage for Indonesia to independently modernize its weaponry by empowering its strategic industries to develop military hardware after more than 20 years of dormancy.
The law stipulates that primary defence industries that produce weaponry and strategic defence equipment shall come under the auspices of the Ministry of Defence, while supporting industries shall be under the Ministry of State Enterprises.
President Susilo Bambang Yudhoyono signed the Defence Industry Law on October 5, 2012, which coincided with the 67th anniversary of the National Defence Forces (TNI).
The president said at the time that the signing of the law was dedicated to the meritorious service of the fighters who had served the state.
According to the head of state, the law on the defence industry was intended to provide a legal foundation and contribute to efforts to speed up the development of the national defence industry.
(O001/INE/KR-BSR/A014)
Reporter: Otniel Tamindael
Editor: Jafar M Sidik
Copyright © ANTARA 2012
