State-owned manufacturer PT Pindad has secured a contract to supply rifles and machine guns to the Saudi Arabian military, President Prabowo Subianto announced on Friday. The deal marks a shift in Indonesia’s defense strategy as the government pivots toward strengthening domestic production capabilities rather than pursuing the sale of strategic state-owned enterprises to foreign investors.
Revitalizing Indonesia’s Defense Industry
President Prabowo confirmed the contract during the inauguration of the Meninting Dam in West Lombok, West Nusa Tenggara. The agreement requires PT Pindad to produce all rifles and machine guns for the Saudi military, serving as a primary indicator of the government’s commitment to reviving its domestic defense sector.
This initiative represents a reversal of previous administration plans that sought to sell off key defense firms. According to the President, the government has halted efforts to offload PT Pindad, PT PAL Indonesia, and PT Dirgantara Indonesia to foreign parties. By retaining ownership, the government aims to prevent the further decline of these manufacturers and foster their growth.
Did You Know? PT PAL has expanded its industrial capabilities under this revitalization strategy and is now capable of constructing warships, submarines, and other advanced naval vessels.
Military Performance and Future Investments
The government is linking this industrial push to the operational performance of the Indonesian Army. President Prabowo cited the Army’s record in international shooting competitions—specifically 13 overall championship wins in Australia involving participants from across the Asia-Pacific region—as evidence that properly equipped troops can perform at a global level.
The administration intends to continue investing in equipment, training, and institutional development to sustain this competitive edge.
Frequently Asked Questions
Which company will supply rifles and machine guns to Saudi Arabia?
PT Pindad, an Indonesian state-owned manufacturer, has secured the contract to produce these weapons for the Saudi Arabian military.
What was the government’s previous plan for defense SOEs?
The government previously planned to sell several strategic defense companies, including PT Pindad, PT PAL Indonesia, and PT Dirgantara Indonesia, to foreign investors.
What evidence did the President provide regarding the effectiveness of Indonesian military equipment?
President Prabowo cited the Indonesian Army’s 13 overall championship wins in international shooting competitions held in Australia as proof that well-equipped and well-trained personnel can excel at the highest levels.
Do you believe that prioritizing domestic production over foreign investment will improve the long-term competitiveness of Indonesia’s defense sector?
