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Indonesia Defence and Security Report 2015

Indonesia Defence and Security Report 2015

BMI View: Indonesia's domestic defence sector is large but needs the current modernization andreorganization efforts underway to realize its potential. The defence industry is largely state-owned, stiflinginnovation and preventing independent expansion. Current President Jokowi is not likely to prioritize thedefence industry as much as previous President Yudhoyono, but as the government is already taking steps toimprove procurement procedures and boost local industry by modernizing and re-structuring, the industryis nevertheless likely to slowly improve over the next few years. Efforts are especially being made in theNavy and Air force, and with foreign partnerships coming into place, the industry will likely have a boostregardless of the realization of the ambitious budget increase to 1.5% of GDP before 2020.

The economy is still under pressure, with a slower growth than President Jokowi had been expecting at 7%.

The currency is still weak, and will hinder Indonesia's ability to procure foreign weaponry. Defencespending at 0.8% of GDP is still far below the target of 1.5% in addition to a weakened rupiah driving upthe cost of imports. The domestic defence industry is still too immature to fulfil its demand, but thereorganization and the increasing transparency of the Department of Defence's processes will encourageboth private sector interest and foreign investors to invest in Indonesia's local defence industries.


BMI Industry View
SWOT
Indonesia Defence & Security SWOT
Political
Economic
Operational Risk
Industry Forecast
Defence Expenditure
Table: Defence Expenditure (Indonesia 2012-2019)
Defence Trade
Table: Defence Trade Balance (USDmn) (Indonesia 2012-2019)
Exports
Table: Defence Exports (USDmn) (Indonesia 2012-2019)
Imports
Table: Defence Imports (USDmn) (Indonesia 2012-2019)
Armed Forces
Table: Armed Forces Personnel (Indonesia 2005-2012)
Macroeconomic Forecasts
Indonesia - Economic Growth Unlikely To Rebound Significantly
Industry Risk Reward Indices
Indonesia Security Risk Index
Market Overview
Indonesia Defence Market Overview
Domestic Defence Sector
Table: Key Players In Indonesia's Defence Sector
Domestic Market
Table: Defence Trade Agreements
Indonesia Security Overview
Domestic Threats
Regional Threats
International Threats
Weapons of Mass Destruction
Company Profile
PT Dirgantara Indonesia (IAe)
PT Pindad
PT Penataran Angkatan Laut (PAL)
Regional Overview
South East Asia Security Overview
Challenges And Threats To Stability And Security
Global Industry Overview
Political Risk Analysis
Methodology
Sector-Specific Methodology
Table: Defence Risk Reward Index Indicators
Weighting
Table: Weighting of Defence Risk Reward Index

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