The momentum of the 2021 National Awakening Day became the common space for the Defense Industry SOEs to strengthen and accelerate steps to realize the Defense Industry SOEs Holding. The SIAP (selaraskan, integrasikan, akselerasi, pastikan– align, integrate, accelerate, ensure) tagline is the provision for the Defense Industry to do so. This is also an answer to the given various challenges and potential defense threats to Indonesia.


In order to defend its sovereignty, Indonesia requires readily available Defense and Security Equipment. Up to the present time, Indonesia is heading towards a 100% essential force in 2024 yet  the defense industry is still facing various problems such as limited government budget support, limited long-term demand, limited synergy and alignment between SOEs, and low research and development budget.


According to PT Len Industri (Persero)’s President Director, Bobby Rasyidin, the plan to establish the Defense Industry SOEs Holding is one of the answers to this challenge as it may change the paradigm of defense spending into defense investment, integrate supply chain synergies in the Defense Industry in increasing local content, elevate the advantages of dual use of technology-based solutions, and maximize  the opportunities to become part of the world-class defense industry global supply chain.


PT Len Industri (Persero) was appointed as the holding company for the Defense Industry SOEs Holding considering that the future trend of war defense is based on the C5ISR network centric warfare, as well as the ability to integrate technology from each defense dimension, and Len Industri’s experience in becoming the holding company of its subsidiaries.


“Defense Industry Holding implements Industrial Technology 4.0. Investment in digitalized business processes will result in production efficiency which increases service assurance to users in fulfilling the quality and timely order delivery,” said Bobby Rasyidin, President Director of PT Len Industri (Persero) in Bandung (20/05/21).


Bobby gave an example, digitalized business processes for operational excellence include Human Capital Management System, Production Process Automation (Smart Factory), Application of Artificial Intelligence, SAP Integration and Supplier Management and e-Proc.


SOEs that are members of the Defense Industry Holding include PT Len Industri (Persero) that focuses on the C5ISR Platform along with MRO and 3-dimensional integration solutions (interoperability) through Network Centric Warfare; PT Pindad (Persero) which focuses on land-based platforms, MRO and the provision of weapons and munitions; PT Dirgantara Indonesia (Persero) with a focus on airborne and MRO platforms; PT Pal Indonesia (Persero) which  focuses on development of marine and MRO dimensions; and PT DAHANA (Persero) which focuses on development of energetic materials (explosives) products for all defense elements.


Strategic steps to realize the Defense Industry SOEs In Holding are continuing to move forward. In addition to preparation for meeting the  external needs, efforts to build internal solidity are also in progress.


“Since July 1, 2020, the AKHLAK’s Core Values ​​have become the identity and an element the SOEs work culture which is the basis for shaping the character of human resources in the SOEs environment, including that in the Defense Industry SOEs. This is supported by the implementation of better corporate governance practices (GCG), “concluded Bobby Rasyidin.


The National Awakening Day commemoration is a momentum for Indonesia to recalculate the strength of State Defense and Security. What the national awakening movement heroes did in the past should preserved and maintained to make sure that Indonesia’s prosperity can be benefitted by the future generations  (*)