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World Air Forces 2023 by Flght International : Eagle on Future Indonesia AIr Force Fleet
 

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Indonesia defense budget for 2024 is decreasing from current year.

2024 defense budget is 8.3 billion USD
2023 defense budget is 8.8 billion USD

Look like Nusantara city development gets more budget for next year. KF21/IFX look like getting more budget by seeing R&D budget for 2024. We still need to wait whether KF21/IFX program will also get additional budget from other Ministries as aspired by our defense minister Deputy.


In billion Rupiah
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SEA to Provide KraitSense ASW System for OPV Programme

SEA has been awarded a contract to supply two of its innovative ASW systems, KraitSense, to a South-East Asian Navy for a new offshore patrol vessel (OPV) programme.

SEA will deliver the complete, lightweight passive ASW system, which is designed to give smaller, non-specialist platforms such as OPVs, a leading ASW capability. The system contains SEA’s world-leading low profile sonar sensor, KraitArray, handling equipment, processing hardware and software as well as an interactive user control station to view, analyse, report sonar contact information and to maintain the system.
David Hinds, Vice President of Strategic Accounts at SEA, said: “KraitSense is an extremely capable, yet cost-effective, ASW system with a lower footprint, weight and power requirement compared to alternatives. This means customers such as this Navy can enable ASW capability on smaller vessels that traditionally would not be able to host or financially justify this type of capability previously.
“With a vast coastline and high number of islands within their jurisdiction, as well as a growing underwater threat in the South-East Asian region, bolstering ASW capability is crucial. KraitSense is an agile system that can upgrade their overall capability and we’re delighted to be supplying an end-to-end solution that will help them to deal with increasingly complex threats.”

With low power consumption, drag and weight, the sonar sensor KraitArray also offers significant cost efficiencies when compared to traditional line and towed arrays making it suitable for smaller ships and unmanned vessels.
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KraitSense previously demonstrated its capability on smaller vessels during the NATO Exercise REP (Maritime Unmanned Systems) 19, where it detected, tracked, and classified a submarine whilst deployed from a Portuguese Navy OPV. The system was also demonstrated at NATO Exercise REP22 where it was integrated with an Extra Large Uncrewed Underwater Vehicle (XLUUV).
To deliver this ASW system, SEA has collaborated with sonar data processing specialist ELAC Sonar, another of the Cohort Group companies, to provide this South-East Asian Navy with the very best software capability.
 
Indonesia defense budget for 2024 is decreasing from current year.

2024 defense budget is 8.3 billion USD
2023 defense budget is 8.8 billion USD

Look like Nusantara city development gets more budget for next year. KF21/IFX look like getting more budget by seeing R&D budget for 2024. We still need to wait whether KF21/IFX program will also get additional budget from other Ministries as aspired by our defense minister Deputy.


In billion Rupiah
347565325_552565350286155_7536472984625077343_n.jpg

347806571_916307202966042_8179076863521460629_n.jpg
Please turn on messaging. I can't add you.
 
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President Macron attends Paris Air Show 2023 by replica of Rafale jet fighters, one of its with our Indonesian banner Red & White:cool:

 
Today 19 June 2023, at Paris Air Show 2023, Thales and PT LEN officials celebrate a new milestone towards Indonesia’s airspace protection capabilities with the future delivery of 13 Ground Master 400 Alpha long-range air surveillance radars and the associated Command and Control system (SkyView).

The resurgence in geostrategic confrontations has significantly increased demand for airspace protection. In addition to aircraft and missiles, UAVs now also constitute a threat to airspace sovereignty. Thales air surveillance solutions selected by PT Len will strengthen Indonesia’s Airspace sovereignty and protection.

Renowned for the performance of detecting threats at long range and low altitude, the GM400 Alpha provides superior situational awareness for early detection helping armed forces enhance airspace sovereignty. The digital architecture of the radar ensures that it remains resilient to new threats, cyber-attacks and electronic warfare tactics.

SkyView, a complete command and control (C2) system, covers large geographical areas and ensures the full integration of Indonesian Air Operation Centres at local, regional and national levels. Skyview provides an integrated accurate 360° air surveillance picture through the easy-to-deploy and combat-proven Ground Master (GM) 400 Alpha tactical radars. As soon as the air threat is detected and identified, the relevant effectors can be selected and activated.

This contract will span the next few years with Thales building the radars and Command and Control solution and PT Len constructing the radar stations, providing the installation and integration of the systems including managing civil works for the programme, supported by Thales. PT Len will manufacture certain components of the radars locally, building local indigenous capabilities, contributing towards Indonesia’s strengthening of local defence industry.

This milestone further cements the strategic collaboration between PT Len and Thales, who announced in November 2022 the creation of a joint-venture (JV) that will start with local Maintenance, Repair and Overhaul (MRO) activities for radars in service with the Indonesian Air Force, projected to begin operations in early 2024. Additional cooperation topics will be explored including radars, Command & Control systems, military satellites, and Combat Management Systems.
 
KF21/IFX financing issues

Well based on Finance Ministry official, Indonesia has once again paid the cost share this year and next year has been budgeted as well, but the figure is not as big as Korean wants, but at least current government still contribute some financing on the program, that is that important according to me.

The facility for IFX production has been built as well despite the production equipment is still not yet completed, but production hangars and some production equipment have already been in Indonesian Aerospace complex, even they extend the land owned by Indonesian Aerospace in order to have additional production facility for IFX. This shows that Indonesia is serious on the program.

Previously, for some years they dont even pay a penny for the program although 116 Indonesian engineers were still in Korea until the design phase is formally completed in September 2019. The engineers (mostly work for plane design) went home in March 2020 when the prototype manufacturing phase has already been started.

Regarding plan to acquire 24 KF21, it is immidiate program as the presentation made by Prabowo talks about immediate acquisition plan, so dont spin it as if Indonesia only want to order 24 of KF21....So better interpretation of that is that the initial acquisition of the plane is for 24 plane first which will be continued with other phase of acquisition..step by step and this is some what that is usually done by Indonesian Defense Ministry, even for Rafale order it is still for 6 planes, while until now the rest of the planes are not yet ordered.

I also have said many times here that in Indonesia we have law regarding defense acquisition where foreign defense equipment is banned to be ordered if there is local alternative made by local defense industry. So KF21 is very likely to be ordered more than just 48 plane, by seeing there is production facility of the plane in Indonesia, of course it is very unlikely we only order 48 planes, or even 24 planes....
 
Understanding current Indonesian gov situation related to its KFX/IFX payment issues.


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Written by Indos



1. Prabowo wants to get elected, so he wants to be seen as successful defense minister, so his buying spree action is seen to make him win public support, despite maybe he doesnt know that if he doesnt finance KF21 properly then he will get public backlash and this will haunt him in the upcoming Presidential debate as he is seen as prioritizing importing foreign plane than Korean-Indonesian joint fighter program which is a national program amid limited defense ministry budget.

2. Prabowo is Jokowi rival in 2019 election, bringing Prabowo to the cabinet will strenghten Jokowi position in parliament related to Omnibus Law, Nusantara Capital City, and reducing fuel subsidy which are very important Jokowi program. So Jokowi will not intervene much on how Prabowo manage its own budget.

3. KFX/IFX program is Defense Minister program and should be paid by Defense Ministry budget, this is what is understood by the cabinet members. Jokowi first administration can pay the program normally for 2015, 2016, and 2019 payment where the defense budget is actually not really different with current defense budget. What is obvious is that within Jokowi first administration they dont order much imported equipment.

4. Indonesian administration is very economic centric since Soeharto period (1967 above). Economy become their main drive and goal. Indonesian administration during Jokowi period is even more economic centric, they dont even order much foreign equipment before Prabowo become Defense Minister in Jokowi second term.

5. Indonesian Defense Ministry buying spree on various foreign defense equipment lately is financed by long term foreign loan, not fresh cash money.

6. Any R&D program with total cost above 500 million USD is expected to be difficult to be financed properly due to so many pressing needs as developing country with GDP per capita at 4500 USD (2022). The financing constrain is also likely to happen due to our law that limits gov budget deficit maximum at 3% of GDP which has already been applied since early 2000's after the country gets hurt by Asian Financial Crisis (1997-1998)

R&D program is not put as very important by many Indonesian administrations, they do have R&D program but not really that enough, for example current administration cannot fund R80 civilian plane program despite it is 100 % Indonesian project and can bring pride to the nation with sound business logic due to Indonesian archipelago characteristic and its huge population and growing economy. R80 program only needs around 1 billion USD financing for development until it gets type certificate but this administration cannot finance it due to various pressing issues. For information, currently the plane basic design has already been completed.

If R&D program total cost is less than 300 million USD than current gov will likely support it fully as it is still reasonable for them, while KF21/IFX program needs Indonesia to spend at 1.3 billion USD which is likely considered as too expensive by current gov economists. So the delay in the payment should be expected to happen, but Indonesia is very very unlikely to abandon its financial commitment on the program.

This is why development program like HSR train, medium tank, rockets, N219, N219 Amphibious, and MALE UCAV can get sufficient gov financial support. MALE UCAV program is also not stopped but currently is working on the mission system development.

Indonesian Indigenous HSR train development


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7. Jokowi Nusantara project needs to be speed up as he is about to finish the job in November 2024, he still can finance the project until 2025 as 2025 gov budget is still set during his term in July/August 2024. Nusantara project is Jokowi own baby, while KFX/IFX program is a program that is initiated by Susilo Bambang Yudhoyono administration since 2009 (currently serve as opposition to Jokowi administration in parliament) when South Korea asked Indonesia to join the program.


So, what is next to expect ?


Nevertheless, I believe any Indonesian administration will support the program. The program has already reached the phase where it will be very damaging politically for Indonesian gov to get out from the project. Current government start paying the development cost again after renegotiation is completed in 2021 November, it is despite the amount is not really large, but they have started paying it. What Prabowo means on recent conversation with Indonesian journalist when he said that he still negotiate with Korea while he also said that Indonesia will commit on its obligation is more related with the payment schedule.

Next administration of course will get the highest burden related to the financing, despite so next administration will likely inherit larger GDP, larger gov revenue, and much healthy economic conditions. Next administration will also the one that will likely get the most credit if they fully support the program since the first plane being manufactured in Indonesia will likely be roll out during their period. They also will not have the same urge as current gov to complete Nusantara city project as soon as possible and will likely see it as long term plan thus will likely be more relax compared to current gov regarding to Nusantara city development.

Next administration, in my opinion, will likely have more seriousness in building defense technology due to the nation ambition will likely be raised starting in 2025. Extreme poverty is also expected to be successfully eliminated next year during the last year of Jokowi administration. This then will give more budget space for gov R&D programs.

The Indonesian economists also have already realized the importance of home ground technology development and current gov also has already completed making Indonesia long term development plan last month (2025-2045) where home grown technology development is seen as a very important aspect of development for the country to reach developed status in 2045, so I predict the next administration will likely disburse much larger financing for any important R&D program compared to current one, could be much much bigger than people may currently think.



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KF-21 on schedule to deliver first of 40 jets in 2026 as last prototype makes maiden flight​

 
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Minister of Defense Prabowo Subianto showcased his pride in the achievements of Indonesia's national products during an official visit from the Deputy Prime Minister and Minister of State for Defense Affairs of Qatar, HE Dr. Khalid bin Muhammad Al-Attiyah, in Jakarta recently. While exchanging souvenirs, Minister Prabowo presented the domestically manufactured assault rifle SS2-V5 A1, stating, "This is made by Pindad." His statement not only conveyed a sense of national pride but also indirectly promoted domestic products to the international community. The Pindad-produced SS2 rifles, available in various variants, have become the standard weapons of the Indonesian National Armed Forces (TNI) and have proven their high accuracy both on the battlefield and in international shooting competitions such as AARM, AASAM & BISAM, where they have achieved top honors.


 

Missile Boat and Used Fighter

Alman who are pro imported foreign equipment acquisitionis questioning Indonesian Minister of defense missile boat and used fighter program because the foreign loan for this program is quite large, around 2 billion USD. IMO he is nothing more than Sales Agent that has penetrated Indonesian defense procurement birocracy, his nationalism is in question for sure, he likely has the same mind with 1000 Indonesian university students who study in Singapore and change citizenship to Singapore every year.

Of course this program will make another program like FREEM and F15 EX acquisition which are entirely foreign built platform and will not be made in Indonesia gets pressured, it makes Indonesia only can order 2 FREEM (without weapons) and 8 F15 EX, and this in the situation where Finance Ministry hasnt yet approved those program. People who are pro foreign acqusition and happy to see local defense industry not growing fast are getting angry. Both F15 EX and Rafale are actually pretty weird programs when KF21 can start mass production next year and so far dont get funded properly......very very suspicious......

Trade Balance Argument

Talking about balancing trade deficit with US is also making me lought as our trade surplus with US is small at around 16 billon USD last year while ASEAN countries trade surplus with US is at 155 billion USD despite Indonesian economy is 1/3 ASEAN.

Our aligned interest in SCS is the one that make Indonesia and US has strong defence and foreign affairs cooperation. This is already seen in so many defense cooperation between Indonesia and USA. In short, there are already common interest between the two countries that strenghten the relationship of two nations. The cooperation betwen Indonesia and USA is increasing when China starts to rival USA around middle of 2000's which was under SBY administration. As China getting stronger, the cooperation between Indonesia and USA is also likely getting stronger or at least remains like this due to Indonesia also doesnt want to be seen as opposing China too much.

Current US administration is also not like Trump administration where Trump has more interest in economic benefit and less interested in geopolitics. It is during Trump administration when US starts=ed to talk about balancing their trade with other nations, but their main target in SEA region is not Indonesia, but Vietnam and Malaysia. This is when Trump wants to be friend with Russia and dump US defense support in Europe LOL. This is then should be considered as an anomaly and cannot be seen as US mainstream foreign affair policy. Everything has gone back to normal again now.


Rafale TOT

No significant TOT as well for Rafale acqusition when it is fully realized will cost Indonesia at 8 billion USD. I am OK though with 16 planes acquisition. As person who are close to the engineer in PTDI, I have many times stated that Indonesian Aerospace is more into getting TOT through real fighter development, this is where the capacity building really take place for critical technology acquisition. The fund to conduct our own research with university like ITB is also seek as no one will give you real critical fighter technology, so far this program is stopped since 2018.

Point Defense Strategy

Back to missile boat again. The missile boat platform will be made by local companies, Lundin and PAL Indonesia, while the missiles by Norwegian companies.

He argues that the boat is not effective in South China Sea, LOL dude do you know Indonesia has many Islands there like the biggest one like Natuna Island ? Ukrainian manage to sink Russian Cruiser with Shore Based ASM recently.

We can deploy this missile boat in several strategic locations like Jakarta, Natuna Islands, Sunda Strait, Malacca Strait, Nusantara City etc. More likely can be second defence layer strategy when enemy warships have already destroyed our frigates and getting closer to our shores in an important cities, it is also defined as point defence strategy.


This is done by KCR 43 meters in Natuna Sea.


Used Fighter

For 12 Mirage 2000-5 acquisition, I do support it. It is interim acquisition and the fighters can operate until another 15-20 years to come. It is better than acquiring new fighters plane that must be still non Stealth fighters, unlikely to survive in modern aerial warfare and will suck our USD too much while in the other hand we have already had cheaper KF21 program with already STEALTH design that can be produced locally that is sadly not supported fully by current defense minister and current administration.

Mirage 2000-5 acquisition can also benefit our avionics company, Info Global. Similar thing when Info Global gets benefit from our Hawk squadron units that lack support from its OEM.
 
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