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Indonesia defense acquisition program 2020-2024

Defense Budget breakdown for 2022 and 2023

Source : KERANGKA EKONOMI MAKRO DAN POKOK-POKOK KEBIJAKAN FISKAL TAHUN 2023 dan 2022

2023 defense budget is a bit lower than 2022 defense budget ( for Armed Force )
By seeing how small it is research budget in 2023, so my assumption is that many of the research program is now funded by BRIN (directly under President ) and could be under Finance Ministry program directly, which possibly include KFX/IFX program and MALE UCAV program ( since the start it is under BRIN )

In Billion Rupiah
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Indonesia has the 3rd biggest coastline in the world. Need to invest heavily in navy sector.
 
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Rizwan Rahmat made a mistake, 6 Rafale planes order is go ahead as it is part of previous 1.1 billion USD MRCA program backed by foreign loan which has been approved by both Planning Minister and Finance Minister in 2021.

He also made another mistake by saying green book is for 2022 state budget, 2022 state budget has been made in middle of 2021 where parliament has approved it. This green book acquisition program can only be effective contract in 2023 where the amount of money that will be disbursed as the down payment will be decided this year but the disbursement can only happen in 2023 ( making the contract effective ).

Many dont understand that the plan to buy another 36 Rafale planes are just Prabowo Subianto plan and hasnt been sealed with contract just like previous 6 Rafale planes order. The dire needs is to fill previous F 5 squadron with just 12 planes.

Indonesia has already had KF21/IFX program that should be the main backbone of our future fighters squadrons. The decision not to approve Prabowo plan to buy another 36 Rafale planes I believe make countries such as Singapore and Australia worry since KF21/IFX have relatively similar capability with F 35, particularly the block 3 and has cheaper price than Rafale and F15 EX, so potentially Indonesian dream to have around 100 modern capable fighters could be achieved beyond 2030's, which is all the same type thus much more effective, efficient and easier to operate, not to mention if PTDI also develop the Stealth Wingman drone for the KF21/IFX squadrons that they will be produced in the country, inshaAllah.

KF21/IFX is also more suitable to face China aircraft carrier in SCS that in the future will be loaded with J 31 5 generation fighters. With this program, inshaAllah we will have both modern capability and adequate number of fighters (due to cheaper price and the production is handled by our local industry ) that can match with our future challenge

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24 MAY 2022

Indonesia omits major procurement programmes from 2022 ‘Green Book'​

by Ridzwan Rahmat

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The Indonesian Ministry of National Development Planning has omitted major defence procurement programmes from the register of priority projects approved for foreign funding in 2022.

This register is commonly referred to in-country as the ‘Green Book'. Programmes included in this register will be escalated to the Indonesian Ministry of Finance, which will then decide on the final amount of foreign loans that can be obtained for fiscal year (FY) 2022.

Documents forwarded to Janes on 24 May by a government source indicate that among programmes that have been included in the ‘Green Book' are mid-life upgrades for the Indonesian Navy's Diponegoro-class corvettes and Bung Tomo-class frigates. In terms of hull age, these vessels have either exceeded or are approaching their 20-year mark.

Besides these combatants, upgrades for the Indonesian Navy's first batch of KCR-60M-class fast-attack craft and FPB-57 fast patrol vessels are also mentioned. The former type was commissioned in 2014 while the latter were inducted between 1988 and 2004.

A programme to procure more medium-altitude long-endurance (MALE) unmanned aerial vehicles (UAVs) for the Indonesian Air Force is also included in the ‘Green Book' for 2022.

Overall, the total amount for all programmes included in the register of priority projects for which foreign funding can be obtained is USD2 billion.

Notably missing from the register are programmes to equip the Indonesian Air Force with Rafale multirole fighter aircraft from Dassault Aviation, and the Indonesian Navy with FREMM guided-missile frigates from Fincantieri. Contracts for these major equipment were signed in 2021.

 
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1.There is only 1.3 billion USD foreign back fighters (MRCA) acquisition plan for Jokowi last term 2020-2024 ( blue book).

2. In 2022 there is only 2 billion USD foreign back acquisition approved by Planning Minister for defence minister, there is no MRCA program in this 2022 greenbook.

 
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There is 2.7 billion USD submarine program for defense acquisition program in final Jokowi term (2020-2024), but it is not yet the program for 2022, basically because I think the submarine complete production facility hasnt been completed yet. Our planning minister look like wants to make sure that next submarine deal must ensure the submarines are all be made in Indonesia.

For frigates acquisition program, there is 2.4 billion USD for 2020-2024 blue book, but it will be screened again to insert it into green book ( second screening by Planning Minister) and then PSP ( screened 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 )

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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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Defense Budget, in 2020 it is actually reduced for Covid budget

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Rizwan is wrong by saying this title. No way our defense minister requested this amount, he has requested wayyyy higher than that, but final say not on him

The same as his dream with 32 F 15 EX and 42 Rafale. So far only 6 Rafales being approved and the money to activate the contract is not even paid yet by our Finance Minister.
 
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PT PAL Indonesia is confirm to do huge refurbishment and upgrade programs to Indonesian corvettes and missile boats. This is after Alman Helvast said that Finance Minister has approved the program.

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How much is the program cost of Indonesian navy ships refurbishement and upgrade ?

Well, it could be 1.1 billion USD as it was the MOU between Indonesia Defense Minister with PT PAL Indonesia and Indonesia President, Jokowi, also present during the announcement. The MOU has been made several months ago.

Here the detail during Defense ID event in early 2022 :

During the event, there are several announcement of new contracts and cooperation as well :

The launch of DEFEND ID


1. Contract of 13 GCI radar with Defense ID (PT LEN Industry)
2. Contract of small ammunition production with PT Pindad
3. Contract of MRO work for 12 C 130 Hercules with PT Dirgantara Indonesia (Indonesia Aerospace)
4. MOU with PT PAL Indonesia for MRO, upgrade, and modernization of 41 Indonesian Navy warships ( value is 1.1 billion USD )
5. Cooperation agreement between PT LEN Industry with Thales (France)
6. MOU between PT Pindad and FNSS (Turkey) for AAV vehicles production.
7. The launch of 3 missile boats 60 meter (KCR 60) by PT PAL Indonesia
8. Inaguration of Elemented Detonator factory operation (PT Dahana)

20 April 2022

 
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2021​


PAL Indonesia to Build Frigates under Babcock License​

BY :HERU ANDRIYANTO
SEPTEMBER 17, 2021

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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.


 
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Getting credit from Bank Mandiri, PTDI continues the defense equipment project ordered by Minister of Defense​


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October 15, 2022 / by Author Jaden


AIRSPACE REVIEW (airspace-review.com) – PT Dirgantara Indonesia (PTDI) received an extension and addition of a Non Cash Loan and IGF Deferred Payment credit facility from Bank Mandiri amounting to 297 million USD or equivalent to IDR 4.56 trillion.

With this credit, PTDI will continue to complete a number of defense equipment procurement projects ordered by the Ministry of Defense (Kemhan).

Among them are the completion of work on the H225M Caracal helicopter project and NC212i aircraft parts, the H225M VIP helicopter, and the work on the C-130 Hercules aircraft MRO project.

The signing of the extension and addition of credit facilities from Bank Mandiri was carried out by ptdi's Director of Finance, Risk Management, and Human Resources Wildan Arief with Pt Bank Mandiri's Senior Vice President of Government and Institutional II Group Teuku Ali Usman in Jakarta on Wednesday.

PTDI appreciates Bank Mandiri for its banking support to complete the projects to be carried out by PTDI ordered by the Ministry of Defense of the Republic of Indonesia.

Meanwhile, Bank Mandiri said that this cooperation is not only about business but to maintain the integrity of the Republic of Indonesia through state defense.


-Jaden-

 
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12 second hand Mirage 2000-5 from Qatar has been reported to be ordered by Indonesia, along with Missiles and possibly other items like spares

Indonesia Finance Minister has approved the program so we need to wait for the budget released within 1-2 years ahead.

 
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