Defense Industry Strategy in Strengthening the Indonesian Economy

Abstract

Defense is important for a country, especially Indonesia, which is the largest archipelagic country in the world, with a total of 17,500 islands with a population of 274 million. Indonesia also has a variety of natural resources and is located in a strategic location because it is a crossroads for international trade. This then makes Indonesia vulnerable to threats both from within and outside the country that can threaten the sovereignty, territorial integrity and safety of the Indonesian nation. In maintaining its sovereignty and territorial integrity, Indonesia is preparing the TNI, which is armed with Alutsista. The Defense Industry is an industry that produces Alutsista. The Defense Industry is not only built to meet the needs of the TNI's defense equipment, but is expected to have an influence on the national economy in general and the region in particular. This research uses descriptive research. The research proves that PT Pindad (Persero) Turen has a role in the national economy in general and the Province of East Java in particular. This can be proven from the amount of the company's net profit and taxes deposited by PT Pindad (Persero) every time there is a transaction or routine every month to the state treasury. The contribution to East Java Province can also be seen from the number of workers absorbed by the company and the multiplier effects it causes, such as the absorption of labor through the company's business partners. The welfare of the population of East Java Province also increases every year and almost reaches the national average. The size of the UMK to per capita expenditure is also relatively able to meet the food and non-food needs of the population of East Java Province. PT Pindad (Persero) is currently also working on many projects both from within and outside the country and has strategic steps to develop its business, so it is not impossible that PT Pindad (Persero) can contribute more to the regional and national economy. field.