"However, China`s regulations on technology transfer are based on intellectual property rights, which require us to pay a special fee for transferring technology from that country," Hutabarat noted.
Beijing (ANTARA News) - Indonesia and China are in talks about the technology transfer mechanism for C-705 missiles that will be used by the Indonesian navy.

Director General of Security Potentials at the Indonesian Ministry of Defense Pos Hutabarat told ANTARA News here on Tuesday that both countries need to have their individual legal requirements on technology transfer fulfilled.

Speaking after attending the second meeting on Indonesia-China defense industry cooperation, he stated that Indonesia`s Law Number 16/2012 on defense industry covers technology transfer, trading, and purchase of license for medium- and high-technology weapons.

"However, China`s regulations on technology transfer are based on intellectual property rights, which require us to pay a special fee for transferring technology from that country. The two countries have yet to reach an agreement in this area," Hutabarat noted.

Defense ties between the two countries have strengthened since the signing of the memorandum of understanding between the Indonesian Ministry of Defense and the State Administration of Science, Technology, and Industry for National Defense of the People`s Republic of China (SASTIND) on March 22, 2011, in Jakarta.

Besides, a meeting on defense industry cooperation (DICM) was held in Jakarta on July 24-25, 2012, which was followed by a meeting in Beijing on August 19-20 this year.

These meetings have paved the way for increased defense cooperation between Indonesia and China, including the signing of the Letter of Intent for the joint manufacturing of C-705 anti-ship missiles between the Indonesian Ministry of Defense and SASTIND.

The manufacturing process for C-705 missiles will involve four stages.

"We have yet to agree on the stage at which the transfer of technology will be done. However, the two sides have agreed that a technology transfer process must be put in place immediately," Pos said.(*)

Editor: Heru Purwanto
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