• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

July 13, 2026

Tributes Pour in for New Zealand Actor Sam Neill, a Look at His Life and Career

July 13, 2026

Iran Ceasefire is Over, But Talks to Continue

July 13, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Monday, July 13
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Texas Hispanics swung hard to Trump. A new poll shows they’re furious at his deportations.

    July 12, 2026

    The high-stakes, battleground Senate race that no one is talking about

    July 12, 2026

    Lindsey Graham’s Passing Is Another Stage In The Death Of Trumpism

    July 12, 2026

    How ICE melted from view at the World Cup

    July 12, 2026

    The secret to becoming a sporting superpower

    July 12, 2026
  • Health

    Lindsey Graham Cause Of Death, Aortic Dissection. An ER Doc Explains

    July 13, 2026

    Supporting Science Is An Act Of Patriotism

    July 13, 2026

    AAIC 2026: Researchers focus on tau, target blood-brain barrier

    July 12, 2026

    Lindsey Graham’s Sudden Death Sparks Questions About Cardiac Arrest

    July 12, 2026

    July 13 Is Deadline To Comment On New Trump OMB Rule That Shifts Power

    July 12, 2026
  • World

    Iran Ceasefire is Over, But Talks to Continue

    July 13, 2026

    Texas Man Gets 40 Years for Leading Violent Online Child Exploitation Ring

    July 13, 2026

    Colombia’s Incoming Conservative Admin to Close Its Embassy in Cuba

    July 13, 2026

    Iran Reports New Attacks On Military Targets On Its Largest Island Near The Strait Of Hormuz

    July 13, 2026

    Factory Fire in ‘Shoe Capital’ City Kills at Least 28

    July 13, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

    July 13, 2026

    Mark Cuban has strong words on AI companies and job losses

    July 13, 2026

    Spectrum makes significant decision as customer losses mount

    July 13, 2026

    Costco and Walmart capture grocery-store crowns

    July 13, 2026

    Leading energy company files for bankruptcy

    July 13, 2026
  • Tech

    LAPD Cuts Ties with License-Plate Camera Vendor over ‘Who Owns the Data’

    July 12, 2026

    Apple Lawsuit Accuses OpenAI of Stealing Trade Secrets in Massive Scheme

    July 11, 2026

    Bloomberg Claims Startup Co-Founded by Bill Gates’ Daughter Cheats on Sales Credit

    July 11, 2026

    Nobel Prize-Winning Chemist Leaves U.S. to Join Chinese AI Project

    July 11, 2026

    European Commission Finds Meta Violated Digital Services Act with Addictive Design Features

    July 11, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Indonesia’s Transactional Military Modernization
Finance

Indonesia’s Transactional Military Modernization

May 16, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Indonesia’s Transactional Military Modernization
Share
Facebook Twitter LinkedIn Pinterest Email
Advertisement

When Indonesian President Joko “Jokowi” Widodo appointed his two-time presidential rival Prabowo Subianto as Minister of Defense in 2019, there were many skeptics. Prabowo ran a divisive campaign, and analysts wondered whether he would faithfully execute Jokowi’s agenda. But as he prepares for a third presidential run, Prabowo can campaign on a record of achievements at Indonesia’s Ministry of Defense, especially with regard to closing several big-ticket acquisitions.

Defense acquisition in Indonesia is a mix of operational need, fiscal balancing, and political deal-making. A 2012 law requires the use of domestic companies for military procurement. If foreign companies are used, the deal should include some type of technology or skill transfer. The Ministry of Finance must also approve foreign loans for major defense acquisitions. This means large procurements are influenced by economic and political concerns, as much as by the operational or strategic requirements of the Indonesian Armed Forces.

Several major programs that have moved forward on Prabowo’s watch illustrate this concept in action. The biggest one is a blockbuster deal with France’s Dassault to purchase six Rafale fighter jets with an option for 36 more. The deal was closed in 2022 and the first payment has been completed, which means the initial six units are going into production and scheduled to be delivered in 2026. If Indonesia moves forward with the full order, it will cost around $8.1 billion.

A press release from Indonesian state-owned aerospace firm PTDI states that technology transfers will be part of the deal, though it doesn’t get into specifics. Airbus, which owns 9.9 percent of Dassault, has been a long-time partner of PTDI. We should expect that the Rafale deal, as well as a recent purchase of two A400 Atlas transport aircraft directly from Airbus, will involve the transfer of technology, skills, and licenses from Airbus and Dassault to PTDI and possibly other Indonesian firms. The Indonesian Armed Forces happen to need these aircraft, but the development of indigenous production capabilities is an important aspect of the larger acquisition strategy.

See also  Fed pauses rate hikes, sees two more ahead this year

Something similar happened with the recent purchase of the C-130J-30 Super Hercules from Lockheed Martin. Indonesia has an aging fleet of C-130Hs and is looking to upgrade. The first C-130J was delivered to Jakarta early this year, with four more in production and expected to arrive over the next two years.  As part of the deal PT Garuda Maintenance Facility Aero Asia Tbk (GMFI), a subsidiary of state-owned carrier Garuda, received certification from Lockheed Martin to perform maintenance and overhaul on the existing C-130Hs. Again, Indonesia needs these aircraft but it wants to get more than just airframes out of the deal. It wants the transfer of skills, production, and maintenance capabilities.

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

Another blockbuster deal that has so far not come together is the purchase of 36 F-15s from Boeing. The deal, valued at $13.9 billion, received authorization from the U.S. State Department but doesn’t seem to be going anywhere. Reportedly, the main sticking point is financing and payment, with Boeing concerned about the ability of the Indonesian government to cover the price tag. Another sticking point may be related to technology transfers. If Indonesia goes ahead with such a large purchase, they will be expecting technology offsets and upskilling and Boeing may not be as receptive to such demands as Dassault or Airbus. At the end of the day, even if the U.S. government wants the deal to move forward Boeing is answerable to its shareholders and will be guided primarily by its commercial interests.

See also  Buffett’s must-read annual letter lands Saturday. What to expect

Generally speaking, French defense companies, many of which have a degree of state ownership, have shown a willingness to give Indonesia more of what it really wants when it comes to big-ticket acquisitions. Not just expensive hardware and systems, but know-how and technology that can potentially boost indigenous production capabilities. Indonesia is in advanced talks with France’s Naval Group, for instance, to purchase a pair of Scorpene submarines. The details are still being worked out, but at least some of the production is likely to take place at state-owned shipbuilder PT PAL’s facility in Surabaya.

In Indonesia, military modernization is not just about budgets. It’s about balancing the operational and strategic needs of the Armed Forces against the political imperative to contribute to economic development. In recent years, when push comes to shove a number of complex and expensive procurement projects, often involving foreign defense companies and billions of dollars in loans, have been de-bottlenecked and moved forward.

Advertisement

Government spending on maintenance and procurement of major defense systems has steadily increased since 2019, reaching an all-time high of just over $3 billion in 2022. Part of this is because overall public spending increased during the pandemic. But part of it is also that Prabowo Subianto as Defense Minister has been able to leverage considerable political capital and close big deals. How this dynamic will evolve in the future, as Prabowo shifts his attention toward chasing the presidency for a third time, remains to be seen.

Indonesias military Modernization Transactional
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

July 13, 2026

Mark Cuban has strong words on AI companies and job losses

July 13, 2026

Spectrum makes significant decision as customer losses mount

July 13, 2026

Costco and Walmart capture grocery-store crowns

July 13, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

‘The Lifestyle:’ Murdered Cash App Creator Bob Lee Was Part of San Francisco’s Drug and Sex Party Scene

May 17, 2023

Jake Paul shares intimate kiss backstage after Nate Diaz win with girlfriend Jutta Leerdam dressed in all white

August 6, 2023

Kyiv Undermining Peace Attempts, Says Russia After Zelensky-Xi Jinping Call

April 26, 2023

Trudeau MP Embroiled in China Scandal Resigns From Liberals

March 28, 2023
Don't Miss

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

Finance July 13, 2026

wirestock/Envato Some workers have been mandated back to the office after settling into work-from-home life,…

Tributes Pour in for New Zealand Actor Sam Neill, a Look at His Life and Career

July 13, 2026

Iran Ceasefire is Over, But Talks to Continue

July 13, 2026

Donald Trump Was Target Of ‘Very Specific’ Iranian Assassination Plot

July 13, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,399)
  • Entertainment (5,644)
  • Finance (4,166)
  • Health (2,460)
  • Lifestyle (1,897)
  • Politics (3,861)
  • Sports (4,852)
  • Tech (2,371)
  • Uncategorized (4)
  • World (5,620)
Our Picks

Dennis Rodman Gets Giant Face Tattoo Of His Girlfriend

July 8, 2023

Mississippi Civil Rights Lawyer Arrested Filming Traffic Stop, Attorney Says

June 12, 2023

Woke Leftists Celebrate How ‘Gloriously Gay’ the ‘Barbie’ Movie Is

April 10, 2023
Popular Posts

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

July 13, 2026

Tributes Pour in for New Zealand Actor Sam Neill, a Look at His Life and Career

July 13, 2026

Iran Ceasefire is Over, But Talks to Continue

July 13, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.