PT Dahana has signed a strategic Memorandum of Understanding (MoU) with defense industry leader Rheinmetall Denel Munition (RDM) to construct an energetic material facility in Indonesia. The signing took place during the Indonesia-Africa CEO Forum 2025 at the Saxon Hotel in Johannesburg, South Africa, on November 21, 2025, and was witnessed by Thomas A.M. Djiwandono, the Deputy Minister of Finance of the Republic of Indonesia, and Anindya Novyan Bakrie, the Head of the Indonesian Chamber of Commerce.
Hary Irmawan, PT Dahana’s President Director, emphasized that this collaboration is a significant milestone for the country’s defense industry. He noted that the initiative aims to address the sovereignty challenges of the defense sector, which currently relies heavily on foreign supply chains for essential energetic raw materials.
“High import dependence has weakened the competitiveness and independence of our Defense and Security Forces (Alpalhankam). Through collaboration with RDM, we are not just constructing a factory; we are also ensuring that the sovereignty of strategic materials remains within our nation,” Mr Irmawan stated during the event.
This MoU for the development of energetic material facilities is a tangible solution to the shortage of domestic production capabilities for energetic materials. These materials are crucial for manufacturing defense equipment for the Indonesian National Armed Forces (TNI), the Indonesian National Police (Polri), and various related institutions, particularly for large caliber munitions and warhead fillings. Without domestic production, the nation’s defense capabilities remain limited and vulnerable.
Beyond military applications, the facility will have dual-use capabilities; in addition to enhancing defense capabilities, domestic production of energetic materials will fulfill the mining industry’s demand for commercial explosives. This makes the project highly strategic, as it will boost domestic industrial capabilities while simultaneously supporting the national economy.
Under this cooperation scheme, RDM South Africa will act as a technology provider, committed to transferring technology to Indonesia. The state-of-the-art production facility is planned to be built at Dahana’s Energetic Material Center (EMC) in Subang, West Java, serving as a center for national self-sufficiency in explosives.
Mr Irmawan reiterated that the construction of this facility is a concrete step towards sustainable development in the defense industry. He emphasized that mastering energetic material production technology is crucial for Indonesia to break free from the reliance on imports that has hampered its efforts to achieve independence in defense equipment.
“Our goal with the establishment of this factory is for Indonesia not only to be self-sufficient but also to compete in the global defense industry. This demonstrates Dahana’s commitment to safeguarding the sovereignty of the Unitary State of the Republic of Indonesia through true defense and security independence,” Mr Irmawan asserted.
This historic signing occurred during the Indonesia-Africa CEO Forum 2025, which is part of the 2025 G20 Leaders Summit. The Indonesian delegation was led by Vice President Gibran Rakabuming and Coordinating Minister for Economic Affairs Airlangga Hartanto. In addition to Mr Irmawan, PT Dahana delegation included Wildan Widarman, Erwin Cipta Mulyana, Anggaria Maharani, and Jodi Widjanarko, who played critical roles in the agreement process between Indonesian and South African business representatives.
PT Dahana currently operates nitroglycerin and ammonium nitrate plants and is developing a propellant plant. The addition of these facilities will enhance PT Dahana’s capabilities as a leading Indonesian explosives company, boasting the most comprehensive facilities in the ASEAN region.