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Future of the Indonesian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Future of the Indonesian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

Future of the Indonesian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, published by GlobalData, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.This report offers detailed analysis of the Indonesian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.In particular, it provides an in-depth analysis of the following -

  • The defense industry market size and drivers: detailed analysis of the Indonesian defense industry during 2019-2023, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
  • Porter’s Five Force analysis of the Indonesian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities over the next 10 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Indonesian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Scope
  • Indonesian defense expenditure is forecasted to value US$8.6 billion in 2019 and is expected to grow at a CAGR of 6.52% during the forecast period to value US$11.1 billion in 2023. The economy has been growing at an average rate of 3.8% historically, and this has fueled the growth in the defense expenditure..
  • In terms of local currency, the budget allocation for capital expenditure increased from IDR21.4 trillion in 2014 to IDR28.8 trillion in 2018, and registered a CAGR of 7.73%.
  • The MoD is expected to invest in land based C4ISR, infrastructure construction and Maritime surveillance and detection among others.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Indonesian defense industry market trends for the coming five years
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the Indonesian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
  • Executive Summary
  • Market Attractiveness and Emerging Opportunities
    • Current Market Scenario
      • Primary threat perception
      • Military Doctrine & Strategy
      • Military Fleet Size
        • Table Indonesian Army Strength
        • Table Indonesian Navy Strength
        • Table Indonesian Marine Crops. Strength
        • Table Indonesian Air Force Strength
      • Procurement Programs
        • Table Indonesian Ongoing Procurement Programs
        • Table Indonesian Future Procurement Programs
      • Top Procurement Programs by Value (US$ Million) 2018-2023
        • Table Indonesia- Top Defense Procurement Programs by Value (US$ Million), 2018-2023
      • Social, Political and Economic Environment & Support for Defense Projects
      • Political & Strategic Alliances
    • Defense Market Size Historical and Forecast
      • Indonesian defense budget is expected to reach US$11.1 billion by 2023, at a CAGR of 6.52%
        • Table Indonesia - Defense Expenditure (IDR Trillion and US$ Billion), 2014-2023
        • Table Figure 1: Indonesian Defense Expenditure (IDR Trillion), 2014-2023
        • Table Figure 2: Indonesian Defense Expenditure (US$ Billion), 2014-2023
      • Defense expenditure is driven by the modernization of the armed forces, indigenization, territorial disputes, and natural disasters
      • Defense budget as a percentage of GDP expected to increase over the forecast period
        • Table Indonesia - GDP Growth v/s Defense Expenditure As a Percentage of GDP, 2014-2023
        • Table Figure 3: Indonesian GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
    • Analysis of Defense Budget Allocation
      • Capital expenditure share of defense budget is expected to increase to an average of 34.5% over the forecast period
        • Table Indonesian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
        • Table Figure 4:Indonesian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
      • Capital expenditure to increase over the forecast period
        • Table Indonesian - Defense Capital Expenditure (IDR Trillion and US$ Billion), 2014-2023
        • Table Figure 5: Indonesia - Defense Capital Expenditure (IDR Trillion), 2014-2023
        • Table Figure 6: Indonesia - Defense Capital Expenditure (US$ Billion), 2014-2023
      • Per capita defense expenditure expected to increase during the forecast period
        • Table Indonesian Per Capita Defense Expenditure (US$), 2014-2023
        • Table Figure 7: Indonesian Per Capita Defense Expenditure (US$), 2014-2023
    • Homeland Security Market Size and Forecast
      • Homeland security expenditure is expected to grow at a CAGR of 8.28% during the forecast period
        • Table Indonesia - Homeland Security Expenditure (IDR Trillion and US$ Billion), 2014-2023
        • Table Figure 8: Indonesian Homeland Security Budget (IDR Trillion), 2014-2023
        • Table Figure 9: Indonesian Homeland Security Budget (US$ billion), 2014-2023
      • Border Security and Terrorism will drive the homeland security market over the forecast period
      • Indonesia is considered as `highly affected' by terrorism
        • Table Figure 10: Terrorism Heat Map, 2018
      • Indonesia faces high level of threat from foreign terrorist organizations
        • Table Terrorism Index, 2018
      • Indonesia has a terrorism index score of 4.6
        • Table Figure 11: Terrorism Index, 2018
    • Benchmarking with Key Global Markets
      • Indonesia's defense budget expected to register rapid growth over the forecast period
        • Table Benchmarking with Key Markets - 2014-2018 vs 2019-2023
        • Table Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
      • Indonesian defense expenditure is relatively small compared to other Asian countries
        • Table Figure 13: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023
      • The Indonesian defense budget as a percentage of GDP is expected to slightly decrease during 2019-2023
        • Table Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
    • Market Opportunities: Key Trends and Growth Stimulators
      • Top Defense Sectors by Value (US$ Million)-Projection over 2018-2023
        • Table Top Indonesian Defense Sectors by Value (US$ Million), 2018-2023
      • Military Infrastructure and Logistics
        • Table Figure 15: Military Infrastructure and Logistics - Infrastructure Construction Market (US$ Million), 2018-2023
      • C4SIR-Land Based
        • Table Figure 16: C4ISR-Land Based Security Market Size (US$ Million), 2018-2023
      • Maritime and Border Security - Maritime surveillance and detection
        • Table Figure 17: Maritime surveillance and detection Market Size (US$ Million), 2018-2023
  • Defense Procurement Market Dynamics
    • Table Figure 18: Top Indonesia Defense Procurements in Terms of Supplier Relationships
    • Import Market Dynamics
      • Defense imports expected to increase during forecast period
        • Table Figure 19: Indonesian Defense imports TIV value (US$ Million), 2013-2017
      • Indonesia plans to diversify arms imports
        • Table Figure 20: Indonesian Defense Imports by Region (%), 2013-2017
      • Aircraft and ships constitute the majority of Indonesian defense imports
        • Table Figure 21: Indonesian Defense Imports by Category (%), 2013-2017 (TIV values)
    • Export Market Dynamics
      • Indonesia does not possess significant defense export capability
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 22: Industry Dynamics - Porter's Five Forces Analysis
      • Bargaining power of supplier: Low
      • Bargaining power of Buyer: Medium
      • Barrier to entry: Medium
      • Intensity of rivalry: Low
      • Threat of Substitution: High
  • Market Entry Strategy
    • Market Regulation
      • Defense investment policy conducive to both domestic and foreign investment
        • Table Offset Regulations in Indonesia
      • New procurement policy to support small and medium enterprises
      • Indonesia to launch formal offset policy
    • Market Entry Route
      • Budget Process
        • Table Indonesian Budget Formation Timetable:
      • Procurement Policy & Process
      • Foreign defense suppliers enter the Indonesian defense market primarily through joint ventures
      • Strategic partnerships and military collaborations an easier way to access the Indonesian defense market
    • Key Challenges
      • US Sanctions affecting the market
      • Limited budget for capex deters investment
      • Lack of defense infrastructure
      • Corruption impedes the growth of the Indonesian defense industry
  • Competitive Landscape and Strategic Insights
    • Competitive landscape Overview
      • Table Top Defense Suppliers in Indonesian Defense Industry - By Value (US$ Million) 2018- 2023
      • Table Competitive Landscape of the Indonesian Defense Industry
    • Key Public Sector Companies
      • PT Dirgantara Indonesia: overview
      • PT Dirgantara Indonesia: Major Products and Services
        • Table PT Dirgantara Indonesia-Major Products & Services
      • PT Dirgantara Indonesia: recent announcements and strategic initiatives
      • PT Dirgantara Indonesia: alliances
        • Table PT Dirgantara Indonesia - Alliances
      • PT Dirgantara Indonesia: recent contract wins
        • Table PT Dirgantara Indonesia - recent contract wins
      • PAL Indonesia: overview
      • PAL Indonesia: Major Products
        • Table PAL Indonesia - Major Products
      • PAL Indonesia: recent announcements and strategic initiatives
      • PAL Indonesia: Alliances
        • Table PAL Indonesia - Alliances
      • PAL Indonesia: Recent Contract Wins
        • Table PAL Indonesia - recent contract wins
      • PT Pindad: overview
      • PT Pindad: Major Products
        • Table PT Pindad - Major Products
      • PT Pindad: recent announcements and strategic initiatives
      • PT Pindad: alliances
        • Table PT Pindad - Alliances
      • PT Pindad: Recent Contract Wins
        • Table PT Pindad - recent contract wins
      • Dok & Perkapalan: overview
      • Dok & Perkapalan: Major Products
        • Table Dok & Perkapalan-Major Products
      • Dok & Perkapalan: recent announcements and strategic initiatives
      • Dok & Perkapalan: alliances
        • Table Dok & Perkapalan-Alliances
      • Dok & Perkapalan: Recent Contract Wins
        • Table Dok & Perkapalan- recent contract wins
    • Key Private Sector Companies
      • PT Dahana: overview
      • PT Dahana: products
        • Table PT Dahana - Major Products
      • PT Dahana: recent announcements and strategic initiatives
      • PT Dahana: alliances
        • Table PT Dahana - Alliances
      • PT Dahana: recent contract wins
        • Table PT Dahana- recent contract wins
      • PT Multiintegra: overview
      • PT Multiintegra: products
        • Table PT Multiintegra- Major Products
      • PT Multiintegra: recent announcements and strategic initiatives
      • PT Multiintegra: recent contract wins
        • Table PT Multiintegra - Recent Contract Wins
      • Radar and Communications Systems: overview
      • Radar and Communications Systems: products
        • Table Radar and Communications Systems - Major Products
      • Radar and Communications Systems: recent announcements and strategic
      • Radar and Communications Systems: alliances
        • Table Radar and Communications Systems- Alliances
      • PT SOG Indonesia: overview
      • PT SOG Indonesia: products and services
        • Table PT SOG Indonesia - Major Products & Services
      • PT SOG Indonesia: recent announcements and strategic initiatives
      • PT SOG Indonesia: alliances
        • Table PT SOG Indonesia - Alliances
  • Business Environment and Country Risk
    • Economic Performance
      • GDP Per Capita
        • Table Figure 23: Indonesian GDP Per Capita, 2015-2025
      • GDP, Current Prices
        • Table Figure 24: Indonesian GDP, Current Prices (In US$ Billions), 2015-2025
      • Exports of goods and services, current prices
        • Table Figure 25: Indonesian Exports of goods and services, current prices (LCU Trillion), 2005-2014
      • Imports of goods and services, current prices
        • Table Figure 26: Indonesian Imports of goods and services, current prices (LCU Trillion), 2005-2014
      • Gross National disposable income (US$ Bn)
        • Table Figure 27: Indonesian Gross National Disposable Income (US$ Billion), 2005-2012
      • Local Currency Unit per US Dollar
        • Table Figure 28: Local Currency Unit per US$ - Exchange Rate, 2015-2024
      • Market Capitalization of Listed Companies
        • Table Figure 29: Indonesian Market Capitalization of Listed Companies (US$ Billion), 2005-2012
      • Market Capitalization of Listed Companies (% of GDP)
        • Table Figure 30: Indonesian Market Capitalization of Listed Companies (% of GDP), 2005-2012
      • Government Cash Surplus/Deficit as % of GDP
        • Table Figure 31: Indonesian Government Cash Surplus/Deficit as % of GDP, 2005-2009
      • Goods exports as % of GDP
        • Table Figure 32: Indonesia's Goods Exports as % of GDP, 2005-2014
      • Goods imports as % of GDP
        • Table Figure 33: Indonesia's Goods Imports as % of GDP, 2005-2014
      • Service Imports as % of GDP
        • Table Figure 34: Indonesia's Service Imports as % of GDP, 2005-2014
      • Service Exports as % of GDP
        • Table Figure 35: Indonesia's Service Exports as % of GDP, 2005-2014
      • Foreign Direct Investment (US$ Billion)
        • Table Figure 36: Indonesian Foreign Direct Investment (US$ Billion), 2005-2014
      • Net foreign direct investment as % of GDP
        • Table Figure 37: Indonesian Net foreign direct investment as % of GDP, 2005-2014
      • Mining, Manufacturing, Utilities Output (LCU Tn)
        • Table Figure 38: Indonesian Mining, Manufacturing, Utilities Output (LCU Tn), 2005-2014
  • Appendix
    • About GlobalData
    • Disclaimer

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