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Indonesia defense acquisition program 2020-2024


Jul 25, 2013
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This is the thread for procurement program in Jokowi final term. I will posted the 2022 procurement budget first, then if I have time I will post contracts being signed since 2021. For the year 2020 the procurement is small and more into local defense industry, so I dont cover it much.

This thread will be more intended to big acquisition programs rather than small one

Note :

Only fixed order, please dont put MOU/LOI level contract in this thread
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2022 Budget

The government prepares a budget of IDR 29.5 trillion to strengthen defense


Elang Hitam drone developed by the consortium lead by Indonesian Aerospace

Friday, September 24 2021 / 12:00 WIB

Reporter: Abdul Basith Bardan | Editor: Noverius Laoli

KONTAN.CO.ID - JAKARTA. President Joko Widodo has signed Presidential Regulation number 85 of 2021 concerning the Government Work Plan (RKP) for 2022.

One of the work plans contained in the attachment to the regulation is related to strengthening defense. There are two indicators in the work plan.

The first relates to the fulfillment of the minimum essential force (MEF) reaching 86%. Both the (local) defense industry's contribution reached 50%. In order to carry out the plan, the government has prepared a budget of Rp. 29.5 trillion. The budget is prepared for various program activities.

Read also: Specifications of the Arrowhead 140 warship that Prabowo brought from England

Procurement of 23 types of main weapons system equipment (defense equipment) amounting to Rp 12.64 trillion. In addition, there is also maintenance and care for 20 types of defense equipment worth Rp. 8.14 trillion.

The government through the Ministry of Defense will also build 5 defense facilities and infrastructure with a budget of Rp 746.62 billion. There is also the construction of 25 types of facilities and infrastructure for the professionalism and welfare of soldiers, which were built with a budget of Rp 4.86 trillion.

The Ministry of Defense will also build a cyber defense system in 2022 with a budget of Rp 38.72 billion. The government will also procure 5 types of defense and security equipment (alpalhankam) from local defense industry worth of Rp 3.14 trillion.

For information, in 2022, the State Revenue and Expenditure Budget Plan (RAPBN) will increase. In 2022, the Ministry of Defense's RAPBN is Rp. 133.9 trillion, up from 2021, which is Rp. 118.2 trillion.


Note by me :

Previously Elang Hitam MALE drone consortium lead by BPPT (Gov Research Agency), but in 2022 BRIN has appointed Indonesian Aerospace as the leading company in the consortium that also include PT LEN Industry, electronic company.

Comparison: 1 billion USD = 14 Trillion Rupiah (Rp/IDR)

The budget for foreign defense equipment is in the form of RMP ( down payment ) due to the acquisition will use foreign loan. Budget for local defense industry equipment is also in the form of RMP (down payment) as some financed by foreign loan and others financed by domestic loan.

RMP = (Rupiah Murni Pendamping)
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Indonesia Ministry of Defence orders two Airbus A400Ms​

Nov 18, 2021


21 JUNE 2021

Indonesia approves USD700 million in foreign loans for aerial tanker buy​

by Ridzwan Rahmat

The Indonesian Ministry of Finance (MoF) has granted approval for the country to obtain up to USD700 million in foreign loans to procure two aerial tankers for the Indonesian Air Force (Tentara Nasional Indonesia Angkatan Udara: TNI-AU) in 2021.

This was revealed in a notice issued by the MoF on 26 April listing a total of 31 Ministry of Defence (MoD) programmes for which funding through foreign loans has been approved.

Issued after consultations with the MoD and the Ministry of National Development Planning (Kementerian Perencanaan Pembangunan Nasional: BAPPENAS), the list, which was initially classified, has been provided to Janes by a government source. The document also shows that a total of 56 requests for foreign funding were rejected.

Janes was first informed by a source at the Singapore Airshow 2018 that the TNI-AU had appointed GMF AeroAsia, a subsidiary of national carrier Garuda Indonesia, for assistance with an in-depth study on Indonesia's aerial refuelling capabilities.

A Royal Australian Air Force KC-30A (A330) MRTT with its refuelling hoses out. Indonesia is also considering this aircraft type for its aerial refuelling requirements.  (EADS)

A Royal Australian Air Force KC-30A (A330) MRTT with its refuelling hoses out. Indonesia is also considering this aircraft type for its aerial refuelling requirements. (EADS)

Among the matters that were explored in the study were life cycle costs, local capabilities in maintaining the airframes, compatibility of refuelling methods with the TNI-AU's fleet of aircraft, and inter-operability with existing and future TNI-AU assets.

As part of its findings, the TNI-AU and GMF AeroAsia recommend that the new tankers be equipped with both the probe-and-drogue and flying boom aerial refuelling methods, Janes has learnt.

Prior to the joint study with GMF AeroAsia, the TNI-AU had conducted its own preliminary study comparing Airbus' A330 Multi Role Tanker Transport (MRTT), Boeing's KC-46A Pegasus, and Russia's four-engined Ilyushin Il-78.

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Indonesia orders five C-130J aircraft from Lockheed​

By Mike Yeo

MELBOURNE, Australia — Indonesia has quietly signed a contract with Lockheed Martin for C-130J Super Hercules transport aircraft, multiple sources have told Defense News. Photos taken during the Indonesian Air Force chief’s visit to the aircraft’s production line suggests construction on the first aircraft is underway.

Note :

Contract signed in late 2019 but is activated in 2021

Ministry of Defense Purchases 6 T-50i Golden Eagle Jets from South Korea


Antara - detikNews
Thursday, 22 Jul 2021 11:35 WIB

Jakarta -The Ministry of Defense (Kemhan) is in the process of procuring 6 units of Lead-In Fighter Training (LIFT) aircraft of the T-50i Golden Eagle type from South Korea. This is the second procurement.

"This is the second procurement contract, and a continuation of cooperation with the Korean Aerospace Industries (KAI)," said Head of Public Relations Bureau of the Ministry of Defense General Secretariat, Marsma TNI Penny Radjendra in a press release, as reported by Antara, Thursday (22/7). /2021).

The cooperation between the Ministry of Defense and KAI has been going on for a long time, since 2014. In early 2014, the Indonesian Ministry of Defense received the first 16 units of the T-50i Golden Eagle type of lead-in fighter training (LIFT) fighter training aircraft from South Korea's KAI as the aircraft manufacturer. .

"To meet the demands and needs of the Indonesian Air Force, in 2021 the Ministry of Defense will continue this cooperation with a plan to add six units of T-50i fighter aircraft with KAI," Penny explained.

The procurement process for the six T-50i units, he said, had gone through the applicable procedures and rules involving the relevant ministries/agencies.

Procurement is also carried out by prioritizing aspects of efficiency, effectiveness, transparency, and accountability so that objectivity in each stage of the contract process can be accounted for.

"The procurement of six T-150i aircraft from South Korea's KAI is also carried out with due regard to optimizing the use of domestic industrial components to support the strengthening of domestic strategic industries," he said.

The procurement of the T-50i aircraft, added Penny, is an effort by the Indonesian Ministry of Defense to meet strategic needs for the Indonesian Air Force.

"This is in order to prepare reliable fighter pilots in maintaining the sovereignty and territorial integrity of the Republic of Indonesia from Sabang to Merauke," he said.

Read also:
Prabowo being sued over the Pangkalan Jati Navy Plot, this is the explanation from the Ministry of Defense

Previously, the Indonesian government was reported to have received an agreement to purchase six T-50 trainer jets made by Korea Aerospace Industries Co (KAI). The value of the agreement is estimated to reach 240 million US dollars.

Under the agreement, KAI will supply six T-50 advanced trainer jets to the Indonesian Air Force from 16 December 2021 to 30 October 2024.


TNI AL Adds 5 Patrol Ships To Strengthen Alutsista​

National military defense equipment TNI AL marine patrol
MetroTV • March 05 2022 11:44



The Indonesian Navy has again added to its defense equipment strength by building five patrol boats made by the nation's children to strengthen defense in Indonesian waters .

This was stated by Deputy Chief of Staff of the Navy Vice Admiral Ahmadi Heri Purwono during a visit to a shipbuilding company in Batam City, Riau Islands .

There are five PC-60 type patrol boats to be worked on and will be equipped with cannon type weaponry. The addition of this ship in an effort to strengthen and modernize the power of armaments.

"Five 60-meter ships are equipped with cannons, then six are equipped with missiles," said Heri Purwono in the Metro Pagi Primetime program on Metro TV, Saturday, March 5, 2022.

The plan is to strengthen the defense and will be operated by Fleet One. as a patrol boat for areas in the waters of the Malacca Strait. ( Alifiah Nurul Rahmania )



PAL Indonesia to Build Frigates under Babcock License​

SEPTEMBER 17, 2021


Defense Minister Prabowo Subianto shakes hands with British Defense Secretary Ben Wallace in London, Sept. 16, 2021. Both officials witnessed the signing of an agreement between UK-based defense company Babcock and state-run shipbuilder PAL Indonesia on frigate production under license from the former. (Photo courtesy of the British Embassy)

Jakarta. State-run shipbuilder PAL Indonesia will manufacture two frigates for the Navy under license from UK-based defense company Babcock, following a recent London trip by Defense Minister Prabowo Subianto.

Babcock has agreed a license deal for PAL to manufacture Arrowhead 140 (AH140) frigate, which was designed “with speed and maneuverability in mind”.

The Defense Ministry said in a statement on Friday that PAL will build two new frigates with specific design specifications to meet the requirements of the Indonesian Navy. The value of the joint production remains undisclosed.

According to the British Embassy in Jakarta, the same frigates will soon enter service with the Royal Navy as well.

The agreement “is the first of its kind for the ship, though other countries are likely to follow suit,” the embassy said, adding that others already shortlisted the ship as preferred in procurement processes for their own Navies.

A day earlier, Prabowo and his British counterpart Ben Wallace witnessed the contract signing in London.

The embassy said Babcock will “cut steel” next week and start building Arrowhead 140 for the British Navy in Scotland.


Indonesia signs deal with France to buy 6 Rafale warplanes


AFP Jakarta ● Thu, February 10, 2022

Indonesia signed a deal with France Thursday to buy six Rafale warplanes as part of an anticipated total order of 42, Jakarta's defence minister said, as Paris bolsters military ties in the Asia-Pacific.

"We agreed on the purchase of 42 Rafale. The contract signed today is for the first six, which will be followed by 36 others," said Defence Minister Prabowo Subianto.

It was the latest sign of warming ties between Jakarta and Paris, as France rethinks its alliances in the region following the collapse in September of a multibillion-dollar Australian submarine deal.



MEF (Minimum Essential Force) 3 needs to be expanded until 2034 if we see the realization

We can see Minister of Finance and Minister of Planning favors acquisition for local defense industry.

Foreign Defense Equipment (88 programs)

82 acquisition program that will get foreign loan ( majority are foreign defense products ) havent been under contract, only 6 are under contract


Local made defense Equipment (111 programs)

36 acquisition program funded by local banks are not yet under contract, but 74 program acquisition have been under contract
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The upgrade program is quite sure will be provided by Indonesian Aerospace as the sole manufacturer of Casa 212 (Airbus doesnt produce C 212 anymore)

New fixed wing aircraft mentioned by Alman Helvast is likely 5 CN 235 and this if true will be once again provided by the local company, Indonesian Aerospace.

Local financing by Indonesian local banks is intended for local defense products acquisition
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Blue Book is approved defense acquisition program by Minister of Planning after screening and evaluating the proposal from Defense Minister

PSP is approved defense acquisition programs by Finance Minister
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PSP released in 2021 is 5.8 billion USD

Rafale order ( 6 F3R version)+ some infrastructure= 1.1 billion USD
T50 Golden Eagle (6 planes) = 240 million USD
2 A400 M tankers = 700 million USD
AH140 Frigates ( 2 vessels ) = 700-800 million USD
Super Hercules ( 5 planes) = 800 million USD

Total = 3.6 billion USD ( This will be passed according to my opinion )

---------------------------------------- +

Domestic order

13 GCI radar ( PT LEN Industry ) = 1.1 billion USD (This will likely be passed as well)

Total = 4.7 billion USD

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25 AUGUST 2021

Indonesia sets 2022 defence budget at USD9.3 billion​

by Jon Grevatt

Indonesia's government has announced a 2022 defence budget of IDR134.1 trillion (USD9.3 billion) amid continuing economic constraints bought about by the Covid-19 pandemic.

The new appropriation is a nominal 2% decline on the original 2021 defence budget of IDR136.9 trillion but a 12% increase over the revised allocation for this year of IDR120.1 trillion, budget according to documents issued by the Ministry of Finance (MoF).


Janes Defence Budgets forecasts real-term declines in Indonesia's defence budget in the near term. Growth is forecast from 2025. (Janes Defence Budgets)

The 2022 military expenditure represents 5% of total government expenditure for the year and about 0.7% of GDP. The downsizing of the budget in 2021 was a result of budget reallocations linked to the pandemic, said the MoF. Some of the defence funds were used to procure vaccines, it said.

According to the MoF, the increase in 2022 over the revised 2021 expenditure is consistent with an effort to “realise the fulfilment of the Minimum Essential Force” (MEF) strategy, the term given to the Indonesian military's modernisation programme.

It said defence budget priorities in 2022 included the accelerated procurement of defence equipment, sustaining and upgrading existing materiel, and improving military infrastructure.

The MoF documents show that ‘modernisation' projects – including procurement and sustainment – will receive IDR43.2 trillion in 2022 while funding for military personnel expenses and welfare has been allocated INR12 trillion. Both are small increases over the original allocations in 2021.

The remainder of funds in 2022 will be split across operations, infrastructure investment, research and development, and ‘defence resources'.

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