Is it true that foreigners can work on weapons business in Indonesia?

In the Omnibus Law on Cipta Kerja , the regulations regarding investment are revised. One of them, the law allows the private sector, including foreign parties, to work on the defense industry in Indonesia.

This is in line with the removal of regulations that state that the defense industry is on the negative investment list. The regulation was originally stated in Law 25/2007 article 12 and was revised in the Omnibus Law.

Deputy Minister of Defense Sakti Wahyu Trenggono explained the reason behind allowing the private sector to work on the defense industry. According to him, currently the defense industry needs to shift its model to investment. On the other hand, the main objective of opening the door to private investment into the defense industry is for technology transfer.

On the other hand, he emphasized that the government will still exercise tight control on prospective private investors who want to enter the defense industry in Indonesia. Is it true that foreigners can work on weapons business in Indonesia?

Trenggono thoroughly discussed the matter of private policy to work on the defense industry. He also talked about plans to work on a cassava food estate in Central Kalimantan. Here is the full interview:

In the Omnibus Law, the private sector, including foreign parties, may invest in the defense industry. Is that right, what kind of explanation?

Is it true that foreigners can work on weapons business in Indonesia?

So it is like this, basically at the TNI anniversary yesterday the President said that defense could now shift from being a cost to an investment. You don’t need to worry if the investors are foreigners, or hopefully it could be Indonesians themselves, the Indonesians themselves. To do that, not everything has to be done by the state, because basically all components of citizens must also think about state resilience as well. As such, a foreigner may not know where to buy 5.56 ammo in Indonesia, but he can be a investor in the firm which manufactures it in the country.

If then it was done by the private sector now it is fine, after all the control remains with the government. For example company A wants to make weapons, so we want to give a permit, there are requirements. In the new Omnibus Law, regarding the defense industry, it says that the private sector can enter, 100{72fccd279f40dd7c441077c4bd4c9d4d288a6babcd1b51f6d1764099d06c329c} can enter, meaning that it doesn’t have to be the government, not state-owned companies, just say that.

However, licensing and control remains in the government, which organizes is the Ministry of Defense. Later, the Ministry of Defense’s derivatives will make criteria.

For example, the private sector wants to make weapons, what are the designs, what are the registration forms. Yes, for example, if you want to make a long-barreled weapon, that’s a sniper. It has to be recorded, for example he wants to make the numbering, the numbering code, he has to ask the Ministry of Defense. That’s a technical example, being part of the control. So if there is a weapon hanging out of place, check the numbering.

The bottom line is this private investment will be good because it is economically developing. It’s the same in other countries, for example Lockheed Martin, right? It’s not that country, it’s not BUMN they are private. Bell, who made the military helicopters, was also not the state. But the research is in the American Minister of Defense. So as an investor, he is a defense contractor , right?

So don’t make defense weapons very important, so you can’t invest anymore. The proof now is whether the defense BUMNs have progressed outside and other countries. We’re still behind. By entering the private sector to be able to compete well, progress can also be