Jakarta (2/03/2022) – PT Len Industri (Persero) officially became the SOEs’ Defense Industry Holding on March 2, 2022. This was marked by the signing of the Government’s Authorized Capital between PT Len Industri (Persero) as the holding company and four other defense industry members, namely PT Dirgantara Indonesia, PT PAL Indonesia, PT Pindad and PT Dahana. The signing and submission of the Capital Authorization Deed from the Indonesian Ministry of SOEs to PT Len Industri (Persero) was carried out at the SOEs Ministry Office in Jakarta on Wednesday (2/03).
Following the signing, the Ministry of SOEs has officially transferred the shares of the four defense industry members to PT Len Industri (Persero). Currently, PT Len Industri (Persero) as holding parent of Defend ID owns all Series B shares of the four members of holding Defend ID. Meanwhile, the government owns 1 share of Series A Dwiwarna share in the four companies and 100 percent of PT Len Industri (Persero)'s shares.
"The Defense Industry Holding process does not result in any change of state control on the Holding members. The state remains in control, either directly through ownership of the Series A Dwiwarna shares or indirectly through Len," said Deputy Minister of State-Owned Enterprises Pahala Nugraha Mansury.
The transfer of shares was assented by President of the Republic of Indonesia Joko Widodo last January through Government Regulation (PP) No. 5 of 2022 on the Addition of Indonesian State Equity Participation into the share capital of PT Len Industri (Persero). The regulation has also been supplemented by the Decree of the Minister of Finance (KMK) No.40/KMK.06/2022 on the Determination of the Value of the Republic of Indonesia's State Equity Participation in the Share Capital of PT Len Industri (Persero) which was signed by the Minister of Finance Sri Mulyani on 14 February.
President Director of PT Len Industri (Persero) said, Holding of SOEs Defense Industry will bring benefits to all holding members, especially increasing the ability of holding members in terms of finance and access to funding. The Holding is also expected to be capable of expanding the Defense Industry market to a regional and international scale, including increasing bargaining power in technology transfer cooperation with foreign partners.
"March 2, 2022, is the birthdate of the SOEs Defense Industry Holding with the brand and name Defend ID. I thank the SOEs Ministry and all Defense Industries stakeholders who continue to support the process of formation of this holding," said Bobby Rasyidin, President Director of PT Len Industri.
Mr Rasyidin also explained that the formation of SOEs Defense Industry Holding must be a solution in building an advanced, strong, independent and competitive national defense industry. The long-term goal of this holding is to create the independence of defense and security equipment of the Indonesian Army and Police, to integrate the C5ISR (Command, Control, Communication, Computer, Cyber, Intelligence, Surveillance, and Reconnaissance) supporting industries and energetic materials, supply chain development, and support government priority programs.
The event also saw the signing of the Joint Commitment Statement of SOEs Defense Industry Holding to succeed programs and the development of the defense industry in Indonesia. Holding members are committed to carrying out their best efforts in implementing the strategic program for the defense industry cluster and forming four Taskforce Teams to support its implementation.
The joint commitment was signed by the five Managing Directors of the holding members, namely, President Director of PT Len Industri (Persero) Bobby Rasyidin, President Director of PT Dahana Wildan Widarman, President Director of PT Pindad Abraham Mose, PT Dirgantara Indonesia’s Gita Amperiawan, and PT PAL Indonesia’s Kaharuddin Djenod.
Defend ID Millennial Community Launch
In addition to the submission of the capital authorization deed, this event was also marked by the launch of the Millennial Defend ID community, which is called YoungDefend and a talk-show that was guided directly by the Deputy Minister of State-Owned Enterprises I. The talk-show carried the theme "Defend ID's Women's Millennial Work and Collaboration".
The talkshow featured representatives of female millennials who have occupied strategic positions in their respective defense industry SOEs. The millennial talk about career development opportunities for female employees and collaboration opportunities among Defend ID members.
The entire series of events was witnessed by the President Commissioner of PT Len Industri (Persero) Muhammad Herindra, Deputy for Finance & Risk Management of the Ministry of SOEs Nawal Nely, Deputy for Law & Legislation Carlo B. Tewu, Assistant Deputy for Manufacturing Industry Liliek Mayasari, Assistant Deputy for Finance Bin Nahadi, Assistant Deputy for Corporate Legal Affairs Rini Widyastuti, members of the Board of Commissioners and Directors of Defense Industries, millennials and employees of each holding member attending both offline and online session.
Defend ID Member Business Priority and Focus Program
"During the 2022-2023 phase, the spin-off of the holding's parent business operations will be carried out in stages. Business operations at PT Len Industri, both non-defense and defense will be passed down to its subsidiaries," explained Mr Rasyidin.
The Holding will be able to minimize product overlap between Defend ID members. Len as holding parent plays a role in realizing interoperability or integrating the electronics of the 3 Indonesian armed forces dimensions, both land, sea, and air.
Len, PTDI, PAL, Pindad and Dahana will have their own business focus and priority programs once the holding runs.
Len focuses on platforms and Maintenance Repair & Overhaul (MRO) which determines the superiority of the main weapon system (defense equipment), and the integration of various national defense systems (Network Centric Warfare) with defense radar, underwater sensing and military satellites as priority programs.
PTDI emphasizes on development of airborne and MRO platforms with fighter aircraft, missiles, and drones as its priority programs. PAL Indonesia focuses on developing marine and MRO platforms with submarines as its priority program.
Pindad focuses on development of ground-based and MRO platforms as well as provision of weapons and munitions with medium tanks and rockets as its priority programs. Dahana focuses on development of energetic materials or explosives for all dimensions with propellant as its priority program.