Indonesia Defence Forum

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[Indos]

Indonesian and China warship in North Natuna Sea

 

[Whizzack]

Indonesian and China warship in North Natuna Sea

Its Indonesian, Chinese, and Japanese warships in North Natuna Sea to be exact... although on different days... encounter on Chinese destroyer on 15 Feb, encounter with Japanese destroyer on 17 feb..

 

[Indos]

Our neighbor has woken up


04 March 2021

Malaysia prepares new defence industry policy

by Jon Grevatt

Malaysia’s Deftech has produced the AV8 Gempita armoured fighting vehicle in collaboration with Turkey’s FNSS. The government has indicated that it wants to expand such projects, with the aim to support local capability development. (FNSS)


Malaysia is preparing to launch a national defence industry policy to boost efforts towards self-reliance, the country’s defence minister Ismail Sabri Yaakob has stated.

The new ‘National Defence and Security Industry Policy’ is currently being drawn up, he said, to position Malaysia as producer of military platforms, with the aim to reduce reliance on imports and spur the national economy.

However, the minister indicated that the plan is reliant on partnerships with foreign industry, who would be expected to transfer technologies and knowhow.

Ismail said that the new policy would look to support developments similar to those achieved by India and Indonesia, which have both advanced domestic industrial capability by leveraging partnerships with international defence firms.

He added, “We have been co-operating with some countries and now the phase of technology transfer is in progress. When this is completed, we will be able to produce our own military assets.”

The minister was referencing Malaysian military production projects such as the programme to build the AV8 Gempita 8×8 wheeled armoured fighting vehicle (AFV) for the Malaysian Army through a partnership between DRB-HICOM Defence Technologies (Deftech) and Turkish company FNSS Savunma Sistemleri, a joint venture between Nurol Holding of Turkey and British group BAE Systems.

The requirement for a new national defence industry policy was outlined in Malaysia’s Defence White Paper, which was published in December 2019.

The White Paper said the industry policy should be focused on human capital development, technology development, industrial development, self-reliance, and global market penetration.

Malaysia prepares new defence industry policy

Malaysia is preparing to launch a national defence industry policy to boost efforts towards self-reliance, the country’s defence minister Ismail Sabri Yaakob has stated.

www.janes.com

 

[Indos]

GOOGLE TRANSLATE

[In-depth analysis] "Sufficient development of KF-X even without joint development in Indonesia" The source of Korea's confidence
http://m.newspim.com/news/view/20210305000018
Article Registration: 2021-03-04 06:00
The government "KF-X will come out next month...it is no problem even if the joint development fails"
"We will proceed with the KF-X project according to the procedure"

[Seoul = Newspim] Reporter Soo-young Ha = The Korean fighter (KF-X) 1 prototype, the result of the development of Korea's own fighter jets and replacement of old fighter jets, will be released next month. The long-awaited business that has been lingering for 20 years is seeing the light.

However, as it is known that Indonesia, the country of joint development of KF-X, has not paid its share of 64.4 billion won, some are concerned about whether the KF-X project will be able to end successfully. In response, the Korean government is expressing confidence, saying, "Even if the joint development is broken, there is little impact on the business."

The final assembly site of the KF-X prototype 1, which was released to the media on February 24th. [Photo = Defense Acquisition Program Administration, provided by the National Defense Daily]
◆ Indonesia, unpaid contributions since January 2019... Out of the total KRW 1.73 trillion, only KRW 2272 billion paid
Korea's Best Overseas Investment News GAM
▶ [New York outlook] Nasdaq slump, buying opportunity? Coordination signal?▶ Joan raises $187 million in IPO▶ Virgin Gallotic plunges due to the sale of the chairman's stake of $213 million

The KFX project, also referred to as the Boramae Project, is the Air Force's 4.5th generation medium-class fighter development project, which has been pursuing approximately 8,830 billion won since 2015 to secure Korea's own fighter development capability and replace old fighter jets. It is known that about 120 units will be mass-produced, but it is reported that a total of 18 trillion won will be invested in the mass production cost.

Of these, about 8 trillion won in development costs are shared by the Korean government, the Korea Aerospace Industries (KAI), and Indonesia. Indonesia is supposed to share about 1.73 trillion won, which is 20% of the total development cost, but only 2272 billion won has been paid so far.
Indonesia has not paid ante since January 2019. Until last year, the reason was known to be'economic difficulties' or'Corona 19'.

However, from the end of last year to the beginning of this year, there are local reports that Indonesia has announced plans to purchase US F-15EX and French Rafale fighters, raising concerns over whether Indonesia is trying to step out of the KF-X business. .

In response, the government dismissed some opinions, saying, "We are in the process of negotiating with Indonesia." A government official said, "KF-X is in the production stage, so it takes time to energize it."
The government said, "Even if it is not joint development with Indonesia, there is no difficulty in promoting the project."

According to media reports and government sources, Gwang-seon Chung, head of the Defense Acquisition Program Administration's KF-X project, held a press release event for KF-X prototype 1 held at the KAI factory in Sacheon, Gyeongsangnam-do on February 24. "We are negotiating in a way that is beneficial to the company."

"If the joint development with Indonesia is broken, there is a story that the KF-X project will not go to the end, but it is not at all," he said.

Korean next-generation fighter KF-X [Photo=Korean Aerospace Industry]

◆ Korea → Indonesia production of prototypes is only very small... "Even if the joint development fails, there is no effect on the production of prototypes."

There are two sources of confidence. One is that it has entered the stage of completion of development, such as the imminent release of prototypes, and the other is that the number of prototypes that Korea makes in Indonesia through joint development is very small.

Within the government, it is said that there will be a story saying, "As soon as a prototype is released (just because the Indonesian joint development will fail), there will be no big problems."

In addition, Indonesia produces about 40 KF-X through joint development, of which Korea is known to produce only a small amount. Since most of them are produced by Indonesia after receiving technology transfer from Korea, the worst-case scenario of co-development with Indonesia will have little effect on the target production volume.

A government official said, "If Indonesia is out of business, there is a constant talk about whether the production cost per aircraft will increase, but even so, it does not affect the unit price."
Some raise the question,'What will happen to Indonesia's already paid 227.2 billion won if the joint development fails?'

It can be said that if you think positively, you will not get out of the joint development because you have already paid money, but if you think negatively, you can see that you will try to get the money you have already paid to get out of the joint development.

Regarding this, the KF-X project team of the Bangsaeng Agency explained, "According to the cost sharing agreement between the two countries, if the Indonesian side fails to fulfill its payment obligation twice in a row, the amount already paid by the Indonesian side is not refundable." In other words, even if Indonesia now leaves its foot in joint development, Korea has no obligation in principle to return 2272 billion won already paid.

However, he added, "In this case, it is stated that it is stated to be resolved through all forms of effective dialogue between the Korean Aerospace Industries (KAI) and the Indonesian Ministry of Defense."

[Seongnam = Newspim] Reporter Changbin Yoon = The Air Force's next fighter (KFX) mock-up is being showcased at the'Seoul International Aerospace & Defense Industry Exhibition 2019 (Seoul ADEX 2019)' held at Seoul Airport in Seongnam, Gyeonggi on the morning of October 14, 2019. . 2019.10.14 pangbin@newspim.com

◆ Government "It's still best to develop jointly with Indonesia"… The reason is'national interest'
The Korean government is confident about the possibility of the collapse of joint development with Indonesia and the delay or collapse of the KF-X project. It is the best direction to finish," he said, and he is in a position to continue with the negotiations.

KF-X project manager Jung Kwang-sun emphasized at the KF-X press release event last week that "the two countries are doing their best to discuss profits."

The reason is national interest. First of all, Indonesia is Korea's largest arms exporter. According to the Swedish think tank Stockholm Institute for International Peace (SIPRI), Indonesia purchased 17% of the weapons exported by South Korea from 2014 to 2018.

Therefore, Indonesia has purchased a number of weapons in addition to KF-X, and it is a country with a strategic relationship that is expected to continue.

In addition, it is much more profitable to have a joint development country than to not have a joint development country for the future development of overseas markets for KF-X.

One government source pointed out that "if no one has been jointly involved, it may be bad when you later try to export KF-X overseas."

suyoung0710@newspim.com

[심층분석] "인니 공동개발 아니라도 KF-X 충분히 개발" 한국의 자신감 원천은

[서울=뉴스핌] 하수영 기자 = 대한민국 자체 전투기 개발 및 노후 전투기 대체사업의 결과물인 한국형전투기(KF-X) 1호 시제기가 다음 달 출고된다. 20년을 묵혀 온 숙원사업이 곧 빛을 보는 것이다. 그런데 KF-X 공동개발국인 인도네시아가 현 시점 분담

m.newspim.com

 

[Indos]

I hope the renegotiation can be completed and Indonesia is still inside the program. Jokowi needs to communicate with Indonesian KFX/IFX team to understand the matter better, not just relying on opinion suggested by people around him.

It is a serious project that not only can possibly propel Indonesian Aerospace into the next level, but also good for our nation branding that later can influence positively our geopolitics, diplomacy, and our high tech products and modern service branding in domestic and international market. Continue with this project is better than hosting Olympic Games.

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First prototype of KF-X fighter jet to be unveiled next month​

Posted on : Mar.3,2021 16:50 KST Modified on : Mar.3,2021 16:50 KST

ROK Air Force to acquire 120 aircraft once fighter development is complete

The first prototype of the KF-X South Korean fighter jet at the Korea Aerospace Industries facility in Sacheon, South Gyeongsang Province, is pictured on Feb. 24. (provided by the Kookbang Ilbo)

On the afternoon of Feb. 24, technicians at the fixed-wing aircraft development hanger of Korea Aerospace Industries (KAI) were busy working on the prototype of the KF-X South Korean fighter jet, which is scheduled to be launched in April. Located in Sacheon, South Gyeongsang Province, the hanger is a sprawling building that covers more than three football fields, with an area of 21,600 square meters (5.3 acres).

The prototype’s fuselage bristles with devices, parts, and cables, presenting a formidable image of a fighter aircraft. Six or seven people stood underneath the fuselage with a small cart, focused on an explanation that involved a lot of hand gestures.

“Now that we’ve completed the engine installation test, we’re removing the engine to paint the fuselage. Once painting wraps up next week, the fuselage will take on a dark gray hue,” a KAI staffer said. The engine is being removed to prevent contamination while the plane is being painted and will be reinstalled afterward, the staffer explained.

South Korea’s Defense Acquisition Program Administration (DAPA) and KAI plan to put on quite a show for the launch of the KF-X prototype in April. A “media day” event was held on Feb. 24 for the domestic press, in which officials presented the results of the development project to date.

The KF-X project began in 2015, when the South Korean government earmarked 8.8 trillion won (US$7.12 billion) to develop a jet fighter that could be the future workhorse of the Republic of Korea (ROK) Air Force, replacing the aging F-4 and F-5 fighters. KAI is leading this international joint R&D project and contributing 20% of the cost, with the South Korean government paying 60% of the cost and the Indonesian government paying the remaining 20%.

The launch of the prototype represents the first tangible results of a promise made about 20 years before. During a commissioning ceremony for graduates of the Korea Air Force Academy in March 2001, former president Kim Dae-jung announced that South Korea would develop a top-of-the-line fighter. Actual confirmation of the long-term need for a new aircraft came 18 years ago, in a meeting of the Joint Chiefs of Staff in November 2002.

Jung Gwang-seon, head of DAPA’s KF-X project team, described the significance of the prototype launch as follows. “This will be a monumental event when Korea’s first fighter is unveiled. From the perspective of the developers, this is a crucial time when a fighter that had only existed in plans becomes a reality and we move into the phase of testing the performance of our research.”

The first prototype of the KF-X South Korean fighter jet at the Korea Aerospace Industries facility in Sacheon, South Gyeongsang Province, is pictured on Feb. 24. (provided by the Kookbang Ilbo)


The KF-X is larger than the F-16 but smaller than the F-15, measuring 11.2 meters (36 feet) across and 16.9 meters (55 feet) long. It’s equipped with the latest sensors, including AESA radar (standing for active electronically scanned array), infrared search and track (IRST) equipment, and an electro-optical targeting pod (EO TGP). That gives it the ability to “see first and shoot first,” a requirement on the modern battlefield.


The fighter has 10 weapon stations, with three on each wing and four under the fuselage. The stations can hold a range of cutting-edge weapons, including air-to-air missiles and air-to-surface missiles, weighing up to 7.7 tons. The plane is also equipped with a 20mm Vulcan cannon.

While not exactly a stealth fighter, the KF-X does have a basic stealth profile. That leaves open the option of evolving the design into a fifth-generation fighter through the application of full-fledged stealth technology.

“Becoming a stealth fighter is about more than the shape; we’d also have to develop more technology including radar-absorbing paints and internal weapon bays. In the future, we’ll look into the option of continuing to develop and apply related technology from a long-term perspective,” a KAI staffer said.

Once fighter development is complete, 120 aircraft will be supplied to the ROK Air Force. In exchange for its financial contribution, Indonesia will receive one prototype and technological data, which it will use to build 48 aircraft in local facilities. But Indonesia hasn’t kept up with its financial payments, prompting concerns that the KF-X project may be in trouble.

DAPA reported to the National Assembly’s National Defense Committee last month that of the 831.6 billion won (US$753.1 million) that Indonesia was supposed to pay through February, it had only paid 227.2 billion won (US$205.7 million), leaving 604.4 billion won (US$547.3 million) unpaid. Indonesia had agreed to pay its total contribution of 1.76 trillion won (US$1.57 billion), representing 20% of the project cost, in several stages.

In a statement addressing the controversy, DAPA said that “the Indonesians have expressed their commitment to continued participation in the KF-X development program” and that “the two countries have been seeking a mutually beneficial arrangement through several rounds of working-level negotiations.”

“Indonesia appears to be having a hard time keeping up with its payment plan because of the coronavirus and its economic recession. While the goal of our deliberations is to move forward together if at all possible, the project would certainly not be halted even if Indonesia were to withdraw,” said Jung Gwang-seon, head of the DAPA project team, on Monday.


By Park Byong-su, senior staff writer

First prototype of KF-X fighter jet to be unveiled next month

ROK Air Force to acquire 120 aircraft once fighter development is complete

www.hani.co.kr

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[Indos]

Defense BUMN Holding Will Create Independence for Alutsista (Defense equipment)

This BUMN holding will be called DEFEND ID and PT LEN will be appointed as the leader​

The government revealed that the formation of the Defense BUMN holding would create independence for the main weaponry system (alutsista). Deputy Minister of Defense Muhammad Herindra said the government needed to be firm in the vision and mission of the defense industry to face contemporary challenges.

The government, he said, had prepared a legal umbrella as a basis for the development of the defense industry to achieve independence. In addition, the Ministry of Defense, Bappenas and the Ministry of Finance have increased the defense equipment budget through domestic and foreign loan financing schemes. "With the hope that the transformation of spending to investment will be achieved more quickly," said Herindra while chairing a working meeting attended by five defense industries on Friday.

The plan to form a defense industry BUMN holding has been in progress since 2020. There are five state-owned companies that will be merged, namely PT Dirgantara Indonesia, PT Len Industri, PT Pindad, PT PAL and PT Dahana. This BUMN holding will be called DEFEND ID and PT LEN will be appointed as the leader.

The Grand Design of the formation of this BUMN Holding is to enter the top 50 of the world Defense Industry. The working meeting discussed the Defense Industry BUMN master plan, the roadmap for establishing a holding, and the operating model after the holding was formed.

Holding BUMN Pertahanan Akan Ciptakan Kemandirian Alutsista

Holding BUMN ini akan dinamakan DEFEND ID dan PT LEN ditunjuk sebagai pemimpin LEN Lakukan Sinkronisasi Kebutuhan Rudal Ar...

garudamiliter.blogspot.com

 

[Indos]

I hope the renegotiation can be completed and Indonesia is still inside the program. Jokowi needs to communicate with Indonesian KFX/IFX team to understand the matter better, not just relying on opinion suggested by people around him.

It is a serious project that not only can possibly propel Indonesian Aerospace into the next level, but also good for our nation branding that later can influence positively our geopolitical weight, diplomacy, and our high tech products and modern service branding in domestic and international market. Continue with this project is better than hosting Olympic Games.

 

[Indos]

This I brought the reason of why the renegotiation happen which is mainly due to economic condition (weak currency as trade deficit post highest record).

-----------------------------------------------------

Google Translate (News is in Indonesian)

Kompas.com - 19/10/2018, 13:37 WIB

Indonesia wants to Renegotiate KFX / IFX program

The government submitted a renegotiation regarding the development of the Korean Fighter Xperiment / KF / IFX fighter aircraft with the South Korean Government. The renegotiation was carried out taking into account Indonesia's current economic conditions.

"With the national economic conditions, the President decided not to cancel, but renegotiate or renegotiate. How Indonesia's position can be lighter for issues related to financing," said Coordinating Minister for Political, Legal and Human Rights Affairs Wiranto, after the coordination meeting. in his office in Jakarta, Friday (10/19/2018). Wiranto said the government would form a team to discuss the points for renegotiating the development of the aircraft.

The team will be chaired by Wiranto himself. "Surely this will have an impact on how the previous agreement that we talked about. Today we are close because the President ordered the Police to chair the renegotiation team to the South Korean side," Wiranto said. Some points that will be negotiated are related to financing, production costs, marketing, to technology transfer to intellectual property rights. Wiranto hopes that within a year, this renegotiation discussion can be resolved.

The cooperation in developing fighter aircraft KF-X / IF-X was started by the Government of Indonesia and the Republic of Korea, March 9, 2009. The total project funding until 2026 is planned to be around 8 billion US dollars and divided between South Korea (80 percent) and Indonesia ( 20 percent).

This article has been published on Kompas.com with the title "The Government Negotiates the Development of KFX / IFX Combat Jets with South Korea", https://nasional.kompas.com/read/2018/10/19/13372821/pemerintah-negoti-ulang- development-jet-fighter-kfxifx-with-carousel.
Author: Ihsanuddin
Editor: Sabrina Asril

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My analysis that shows the underlying problem has been tackled with current positive trend in trade

The renegotiation started in july 2018 and it is the year we have record trade deficit around 8.5 billion USD and Rupiah get huge pressured. Later, our trade balance get better, Alhamdulillah, which is deficit around 3 billion USD in 2019 and record surplus in 2020 of 21.74 billion USD (biggest in history after 2012 trade surplus). Even in January 2021 we are Alhamdulillah still post trade surplus around 1.96 billion USD.

SOURCE

Indonesia Trade Deficit US$8.57B in 2018, the Worst in Four Decades

Indonesia Trade Deficit US$8.57B in 2018, the Worst in Four Decades - The Insiders Stories

JAKARTA (TheInsiderStories) – Indonesia recorded US$8.57 billion trade deficit in 2018, the worst in more than 4 decades. Statistic Central Agency Chief Suhariyanto said, Indonesia’s historical worst trade balance was in 1975 with $391 deficit. During 2018, Indonesia’s export was $180.06...

theinsiderstories.com

----------------------------------2019

Thus, Indonesia's trade balance in 2019 recorded a deficit of 3.20 billion US dollars, lower than the deficit in the previous year of 8.70 billion US dollars.


https://www.kemenkeu.go.id/en/publi...e-balance-deficit-in-december-2019-decreased/

-----------------------------------2020

Indonesia booked a record trade surplus in 2020 as imports fell steeper than exports during a tumultuous year for international trade as the COVID-19 pandemic disrupted supply chains and hit global demand. The country logged a trade surplus of US$21.74 billion last year, the second-highest figure in the country’s history

https://www.thejakartapost.com/news...d-high-trade-surplus-in-2020.[/COLOR][/B]html

----------------------------------January 2021

JAKARTA, Feb. 15 (Xinhua) -- Indonesia recorded in January a trade surplus of 1.96 billion U.S. dollars, according to Indonesia's Agency of Statistics on Monday.

Indonesia records trade surplus of 1.96 bln USD in January - Xinhua | English.news.cn

That positive trend is also added with that huge possible battery investment (9 billion USD with LG Chem and 5 billion USD with CATL (MOU stage)-and possible deal with Tesla). The possible EV battery investment can be another huge export sources in our future trade.

Not to mention huge growth in electronics equipment export in 2019 (dont know 2020 data) and huge stainless steel export since 2017 and at least in 2019 we have already become second biggest stainless steel exporter in the world. The underlying problem is actually pretty much gone, AlhamduliLLAH, and Rupiah is quite stable after early pandemic panic in March-Mei 2020.

Source

Electrical machinery and equipment was the fastest grower among the top 10 export categories, up by 50.5% from 2018 to 2019. In second place for improving export sales was footwear. Indonesia’s shipments of iron and steel posted the third-fastest gain in value up by 23.5%.

www.worldstopexports.com/indonesias-top-10-exports/

A deal should be made

Indonesia and Korea should make a deal now since Indonesia underlying problem that prompt the renegotiation has already been turn into positive trend and Indonesia also still has huge money in 2021 due to huge stimulus package, not to mention huge leftover budget from 2020.

Next year, there will likely be no huge stimulus as government has also said stimulus only for 2020 and 2021 fiscal year. They will be more tight in 2022 and above in order to reduce debt to GDP ratio that will be at 40 percent in the end of 2021.

Talking about Air Force plan

I still believe Bappenas only want to approve 1.6 billion USD for new acquisition and maybe includes refurbishment and upgrade of old fighter as well as Alman said. Jokowi has said last year that Armed Force and Defense Ministry should understand the economic situation and prioritise domestic defense industry.

I still remember what Jokowi said and he also make controversial remark recently over push for our own product instead of foreign product that we, Indonesian, have watched.

-----------------------------------------------------------------

This has been posted in other forum from my other ID.

 

[Indos]

The main reason of why deficit of 8 billion USD in 2018 prompted Jokowi administration to do such measure (renegotiation) is because the nature of Indonesian currency, Rupiah, as a fragile currency due to many Westerners hold the Rupiah and it is also traded freely in financial market.

Thus that deficit has made huge Rupiah value lost in 2018 that make Jokowi administration so concern, particularly because this administration put economic agenda as their main agenda and the reason Indonesian people should support them. It is added with the fact that in the next year, 2019, the Parliament and Presidential election were held. In Indonesia, Rupiah deep depresiation is very sensitive since it is the main reason of why Indonesia suffered huge economic crisis in 1997-2000.

Future condition trend

In the future there is likelihood that Rupiah will be stable in Rp 13,500-14.500 range until 2026 due to the positive trend in the trade and industrialization recently. Omnibus Law that has been passed and started being implemented in the beginning of 2021 will be another huge push to improve Indonesian economy strength and competitiveness.

Adding with huge economic recovery domestically and internationally due to Covid 19 vaccination around the world and the success of Indonesian government to get adequate amount of vaccine to reach herb immunity, the economic will likely grow positively at 4-5 % rate as has been projected by Indonesian Finance Ministry.

New development of strong commodities price also will help Indonesian economy and currency that many has expected it will not go away soon due to several reasons, mainly due to global economic recovery and huge stimulus budget being pushed by almost all nations since 2020 and continue into 2021 like what is happening with USA stimulus budget of 1.9 trillion USD.

Dollar falls against commodity currencies but holds gains versus yen

The dollar also fell slightly against the British pound and the euro, but held at multi-month highs against the yen and the Swiss franc because of rising Treasury yields.

www.thejakartapost.com

Conclusion

Because of the above reasons and also what have been brought in my previous post, I would suggest government to continue KFX/IFX program since we have now seen positive trend in our economy that will support our currency to be more stable and strong.

 

[Muhammed45]

The main reason of why deficit of 8 billion USD in 2018 prompted Jokowi administration to do such measure (renegotiation) is because the nature of Indonesian currency, Rupiah, as a fragile currency due to many Westerners hold the Rupiah and it is also traded freely in financial market.

Thus that deficit has made huge Rupiah value lost in 2018 that make Jokowi administration so concern, particularly because this administration put economic agenda as their main agenda and the reason Indonesian people should support them. It is added with the fact that in the next year, 2019, the Parliament and Presidential election were held. In Indonesia, Rupiah deep depresiation is very sensitive since it is the main reason of why Indonesia suffered huge economic crisis in 1997-2000.

Future condition trend

In the future there is likelihood that Rupiah will be stable in Rp 13,500-14.500 range until 2026 due to the positive trend in the trade and industrialization recently. Omnibus Law that has been passed and started being implemented in the beginning of 2021 will be another huge push to improve Indonesian economy strength and competitiveness.

Adding with huge economic recovery domestically and internationally due to Covid 19 vaccination around the world and the success of Indonesian government to get adequate amount of vaccine to reach herb immunity, the economic will likely grow positively at 4-5 % rate as has been projected by Indonesian Finance Ministry.

New development of strong commodities price also will help Indonesian economy and currency that many has expected it will not go away soon due to several reasons, mainly due to global economic recovery and huge stimulus budget being pushed by almost all nations since 2020 and continue into 2021 like what is happening with USA stimulus budget of 1.9 trillion USD.

Dollar falls against commodity currencies but holds gains versus yen

The dollar also fell slightly against the British pound and the euro, but held at multi-month highs against the yen and the Swiss franc because of rising Treasury yields.

www.thejakartapost.com

Conclusion

Because of the above reasons and also what have been brought in my previous post, I would suggest government to continue KFX/IFX program since we have now seen positive trend in our economy that will support our currency to be more stable and strong.

Good assessment sir, specially economically wise.

I have a few questions about this KFX fighter program, why did Indonesia chose to work with South Korea to develop a joint fighter aircraft!?

Why not China or Russia? Is that because of CAATSA or something else? Is that because of Australia and the geopolitical atmosphere of that region?

For sake of the record, South Korea doesn't possess a reliable turbofan engine for now and heavily depends on American support as of now plus they have little experience with developing reliable avionics. They are badly dependent on Israeli components for their avionics of F-16 fleet.

South Korea has made good progress in the field of aerodynamics but in no way comes close to Chinese and Russian giants. Wonderful decision made by Indonesians

 

[Indos]

Good assessment sir, specially economically wise.

I have a few questions about this KFX fighter program, why did Indonesia chose to work with South Korea to develop a joint fighter aircraft!?

Why not China or Russia? Is that because of CAATSA or something else? Is that because of Australia and the geopolitical atmosphere of that region?

For sake of the record, South Korea doesn't possess a reliable turbofan engine for now and heavily depends on American support as of now plus they have little experience with developing reliable avionics. They are badly dependent on Israeli components for their avionics of F-16 fleet.

South Korea has made good progress in the field of aerodynamics but in no way comes close to Chinese and Russian giants. Wonderful decision made by Indonesians

Thank you brother @Muhammed45

Indonesia doesnt chose, the initiative made by Korea first in 2009 and no other country ever ask Indonesia to develop fighter jet together, except Korean. SBY administration accept the invitation. Korea sees Indonesia has both design and manufacturing capability in aerospace sector and also has good economic condition to support the program financially with future potency to grow the economy further once the fighter is ready to be mass produced in 2026 inshaAllah.

Actually having a cooperation with Korea in this field is very positive for Indonesia since country like Russia, European countries, and China dont need partner to develop fighter jet. We will be treated like how Russia treat India during their partnership that has been now failed. Yep, and with CATSA being imposed, it is nearly impossible to even buy Russian weapon in big ticket deal, let alone make joint defense program with them.

China ?? That country is seen as potential adversary due to their nine dash line cliam that intrude our EEZ in North Natuna sea. China also doesnt need partner to build 5 generation fighter.

Indonesia and South Korea seen each other as strategic partner

South Korea defense industry is quite advance and South Korea see both Japan and China as their potential adversary, just remember China involvement in Korean war to see it. While in other hand, South Korea sees Indonesia potency and as a strategic partner that can help their geopolitics and economic interest.

Any way as human to human relation, since both countries never have conflicting interest and both are democratic countries so it is natural for SK to see Indonesia as their close friend. Indonesia is also the only major power in Far East ( G20 club) where Korean doesnt have some sort of resentment, the other major Far East powers are Japan and China.

Indonesia strategic planner also see South Korea is the one that has more willingness to share deep cooperation in its defense industry, and it can be seen with Makassar class LPD, Changbogo deal, and KFX/IFX program. South Korea is also one of major investor in Indonesia which the focus on manufacturing, something that is seen as crucial for Indonesia economic planner. The latest 9.8 billion USD deal in battery production where the investment will be in a form of JV with Indonesian state owned companies is another prove that shows that strong relationship.

Indonesia, South Korea Upgrade Strategic Partnership

Indonesia and S. Korea have agreed to boost mutual cooperation through the special strategic partnership agreement.

jakartaglobe.id

People to people

Indonesian people also see Korea positively that can be seen from Yotube viewer for KPOP where one of the most viewer is Indonesians, their soap opera is also popular among women in Indonesia, even my mother and sister like it also

Some Korean youtuber also get huge Indonesian fans like Ayana Moon, a Muslim Korean that is now residing in Indonesia and can get huge profit from its Youtube where the most fans come from Indonesia.

 

[Whizzack]

France’s burgeoning defence ties with Indonesia
11 Mar 2021|Natalie Sambhi

At first glance, given their geographic distance, there seems little pushing France and Indonesia closer together. But from Paris’s perspective, the French territories in the region and the fact that 93% of France’s exclusive economic zone is in the Indian and Pacific Oceans are compelling reasons for it to seek a greater presence in the Indo-Pacific. Indeed, France is the only EU country with a permanent military force stationed in the Indian Ocean, and Indonesia, Southeast Asia’s largest maritime state, is a natural partner.

Jakarta’s desire to build up its maritime muscle and keep its commitment to strategic nonalignment make the EU an attractive alternative source of equipment, and France is one of the world’s top five arms exporters. France and Indonesia share several of the big-picture strategic interests in the Indo-Pacific, such as a stable and peaceful South China Sea. They’ve also been busily negotiating a defence cooperation agreement which, once signed, will be France’s only such agreement in Southeast Asia.

So, what are the growth areas for this nascent defence partnership? Is there potential to extend the bilateral relationship into other areas? And what does a closer Indonesian–French connection mean for Australia?

The first key area of growth is driven by Indonesia’s interest in the French defence industry. For Jakarta, France represents an important source of high-end warfighting capability. Indonesia’s defence minister, Prabowo Subianto, has wasted no time cultivating this relationship—last year, he made two visits to Paris and spoke on the phone with his French counterpart, Florence Parly.

So it comes as little surprise that a list of proposed big-ticket items released by Indonesia’s Defense Ministry earlier this year included 36 Rafale fighter jets and five modified Scorpène-class submarines. Indonesia has also expressed interest in two of Naval Group’s Gowind-class corvettes. For its part, France appears keen as well. Dassault Aviation senior officials held talks about the Rafale deal with Indonesia’s Defense Ministry in Jakarta last month.

Both sides are also beginning to unlock the potential for joint military training. Last year, a meeting between army officials resulted in an agreement for Indonesian soldiers to exercise with French troops in 2021. Another growth area for army cooperation could be peacekeeping. French and Indonesian blue helmets are in contact in Francophone countries like Mali and Central African Republic, but also Lebanon. In the past, the Indonesian peacekeeping training centre in Sentul employed a civilian French-language instructor.

Indonesia is the eighth largest peacekeeper-contributing nation and France the sixth largest contributor to the UN peacekeeping budget, so the two countries have ample lessons to share on promoting best practice, accountability and initiatives supporting women in peace and security. These kinds of exchanges could begin virtually and, once personnel are vaccinated against Covid-19, could continue in person to strengthen people-to-people ties.

France also has a highly developed navy with which Indonesia could exercise on issues pertinent to its needs. The Covid crisis has revealed new opportunities; analysts Alban Sciascia and Anastasia Febiola Sumarauw argued last year that Indonesia’s navy might be a ‘forgotten pandemic asset’. Especially in an archipelago, developing hospital-ship-like capacities leaves the military with assets it can deploy in both amphibious operations and diplomatic health initiatives.

France deployed its three Mistral-class landing helicopter docks for Covid relief operations last year, suggesting there’s much to share between the countries in seaborne humanitarian assistance and disaster relief. The alternate planning years for French-led Exercise Southern Cross (Croix du Sud), held north of New Caledonia, which includes partners from Indonesia, Australia and the Pacific, would be an ideal place to begin those discussions.

France and Indonesia could also capitalise on their memberships of the Western Pacific and Indian Ocean naval symposiums. Developing a dedicated bilateral naval dialogue alongside either symposium would be a cost- and time-efficient means of boosting information sharing and ties between personnel. France is the chair of the Indian Ocean Naval Symposium until 2022, so it’s an ideal time to explore these options.

From Canberra’s perspective, closer ties between Paris and Jakarta are undoubtedly a positive thing. For one, Australia supports France’s involvement in the Indo-Pacific. The 2018 vision statement on the France–Australia relationship supports closer bilateral cooperation with like-minded partners to bolster regional maritime security, particularly in the Indian Ocean.
Indonesia is a key player in this. Its French naval procurements, if and when delivered, represent a leap forward in its ability to patrol and secure strategic sea lanes not just in the Lombok and Sunda Straits but around the Natuna Islands and Indian Ocean rim. Likewise, the Rafales would boost the Indonesian air force’s confidence and the country’s strategic posture. Greater engagement between Indonesia’s and France’s naval personnel helps build critical ties and foster shared understandings of Indo-Pacific security.

France’s increased Indo-Pacific interest also opens an even wider window of opportunity for Jakarta to work minilaterally with willing maritime partners. Ties between Australia, India and France expanded further last year with the first virtual senior officials’ meeting, undoubtedly with an eye to further Indian Ocean cooperation. There’s certainly potential to find niche areas of overlap between that grouping and the more established Indonesia–Australia–India trilateral, which is currently developing a new maritime exercise. France and India are stepping up naval cooperation, with the first amphibious exercise between the French and the Indian navies, Varuna 21, being held in India.

As Defence Minister Linda Reynolds noted last year at the launch of Australia’s 2020 defence strategic update, the ‘key for the future’ is bringing together the various mini- and multilaterals to strengthen regional security. For Indonesia, that means not just committing even further to capability upgrades but considering carefully how to invest in development and training of its navy and coast guard personnel. The Indo-Pacific continues to be a site of growing dynamism but also increased threats to stability.

With all this attention on regional drivers, however, it’s easy to lose sight of domestic politics. Some of the impetus for closer Franco-Indonesian cooperation in Jakarta, particularly in securing French capability, is from Prabowo’s desire to deliver quick results as defence minister. It’s not that his position is tenuous; rather, it strengthens his claim—if he chooses to run for the presidency in 2024—that he can protect Indonesia and therefore will make a good president. If he’s successful, there could be even more closeness with a Francophile as leader. If not, at least the recent ground gained wouldn’t be undone, given France’s enduring regional, especially maritime, interests.

AUTHOR
Natalie Sambhi

France’s burgeoning defence ties with Indonesia | The Strategist

At first glance, given their geographic distance, there seems little pushing France and Indonesia closer together. But from Paris’s perspective, the French territories in the region and the fact that 93% of France’s exclusive economic ...

www.aspistrategist.org.au

 

[Whizzack]

11 MARCH 2021
Indonesia shortlists four options in follow-on to SIGMA 10514 frigates
by Ridzwan Rahmat

The Arrowhead 140 concept, one of four designs that have been shortlisted in a programme to procure follow-on frigates to the Martadinata class. (Babcock)

Defence planners at Indonesia’s Ministry of Defence (MOD) have shortlisted four design options in a programme to procure follow-on vessels to the country’s Martadinata (SIGMA 10514)-class guided-missile frigates.

Documents and information provided to Janes indicate that the four design options shortlisted are namely an improved variant of the SIGMA 10514 design from Dutch company Damen, the 30FFM class from Japanese shipbuilder Mitsui, the Bergamini (FREMM) class from Italian shipyard Fincantieri, and the Arrowhead 140 concept from a consortium led by Babcock.

The Indonesian Navy (Tentara Nasional Indonesia – Angkatan Laut: TNI-AL) operates a fleet of two Damen-designed Martadinata-class frigates, KRI Raden Eddy Martadinata (331) and I Gusti Ngurah Rai (332), which were commissioned in April 2017 and January 2018 respectively.

Months after the first-of-class was commissioned, then Indonesian National Armed Forces commander, General Gatot Nurmantyo, spearheaded an MOD programme to evaluate the ship’s performance, with a view to expedite the procurement for three follow-on ships. The Martadinata class is intended to be a replacement for the Ahmad Yani (Van Speijk)-class frigates that were transferred to Indonesia from the Netherlands in the 1980s.

The Martadinata-class frigates measure 105.1 m in length, 14 m in breadth, and have a hull draught of 3.7 m. Powered by two diesel engines and two motors in a combined diesel or electric (CODOE) configuration, the warship can attain a top speed of 30 kt, and a standard range of 4,000 n miles at 18 kt. Its weapons include the Leonardo (Oto Melara) 76/62 Super Rapid naval gun, the Rheinmetall Oerlikon 35 mm Millennium Gun, and the VL MICA air defence missile system.

Indonesia shortlists four options in follow-on to SIGMA 10514 frigates

Defence planners at Indonesia’s Ministry of Defence (MOD) have shortlisted four design options in a programme to procure follow-on vessels to the country’s Martadinata (SIGMA 10514)-class guided-miss...

www.janes.com

 

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KSAD Bahas Rencana Perawatan dan Upgrade Helikopter Fennec TNI AD dengan Airbus
Jumat, 12 Maret 2021 23:05 WIB


Laporan Wartawan Tribunnews.com, Gita Irawan
TRIBUNNEWS.COM, JAKARTA -
Kepala Staf Angkatan Darat Jenderal TNI Andika Perkasa membahas rencana perawatan helikopter Fennec TNI AD dengan Airbus.
Dalam pertemuan tersebut hadir di antaranya President Director Airbus Indonesia Dani Andriananta, Director Airbus Government and Marketing Business Pablo yang didampingi Atase Pertahanan Spanyol di Indonesia Colonel Alfaro.

Pada pertemuan tersebut Andika sempat mengungkapkan keinginannya untuk mendapatkan perawatan dan pengembangan helikopter Fennec dari perusahaan yang membuatnya yakni Airbus.

"Katakanlah kita bisa mencoba membantu meyakinkan mereka. Kita hanya ingin mendapatkan pelayanan langsung dari perusahaan yang membuat helikopter ini, bukan perusahaan lain yang berpikir mereka bisa melakukannya," kata Andika.
Sementara itu Dani mengungkapkan sebelumnya juga telah menemui Komandan Penerbad dan membahas helikopter produk Airbus yang dipakai di sana yakni Fennec.
Dani mengatakan saat ini di Penerbad ada kurang lebih 10 helikopter Fennec yang perlu didukung perawatan dan pengembangannya.

"Kita sangat berterima kasih kepada TNI AD. Kemarin kami juga bertemu dengan Pak Komandan Penerbad mengenai helikopter produk Airbus yang dipakai di sana. Ada kurang lebih 10 unit yang perlu kita support untuk maintenance dan upgradingnya," kata Dani.
Sementara itu Pablo menyatakan komitmen Airbus untuk mendukung helikopter Fennec TNI AD meskipun ia menyadari keputusan untuk menginvestasikan perawatan helikopter Fennec ke Airbus merupakan tantangan tersendiri.
"Kami bertekad untuk memastikan dukungan yang tepat sehingga Airbus bisa menjadi bagian dari hal itu," kata Pablo.