Abstract
Indonesia's geographical located between two continents and oceans, those are the Asian nd the Australian Continent, and the Indian and the Pacific Ocean, has made Indonesia to become a country with strategic position, both for the world trade route and inter-State relations. But on the other hand Indonesia has the sovereignty of the State that must be guarded and maintained from all kinds of threats both from within and outside. For this reason, Indonesia is required to have the capacity in the form of TNI defense equipment, which is adequate as the main instrument to protect territorial sovereignty and to safeguard national interests from the threats, challenges, obstacles and disturbances both from domestic and foreign. Therefore, the development of the defense industry is also needed. The main problem in this study is how does the law regulate the development of defense industry as Indonesia's strategic industry?The descriptive method of analysis with normative juridical was used in analyzing the problems of the development of the defense industry in facing the challenges, threats, and disruptions to the Republic of Indonesia's sovereignty as a consequence of the strategic location of Indonesia's geographical position. 
 The results of the study show that the defense industry has a position as a strategic industry, because the primary weaponry defense system has important role in order to maintain the sovereignty of the State. Even though the regulation has been assigned in a law, namely Law Number 16 of 2012 concerning on the Defense Industry, but it has not been regulated by clear regulations and is tend to ad hoc, which is certainly not beneficial for the growth and development of the National defense industry. Law as a medium of renewing society must be able to make changes, so that it can direct where the national defense industry will be developed, so it is able to create companies that are reliable in producing defense equipment to preserve national sovereignty.
Highlights
The results of the study show that the defense industry has a position as a strategic industry, because the primary weaponry defense system has important role in order to maintain the sovereignty of the State
Even though the regulation has been assigned in a law, namely Law Number 16 of 2012 concerning on the Defense Industry, but it has not been regulated by clear regulations and is tend to ad hoc, which is certainly not beneficial for the growth and development of the National defense industry
Law as a medium of renewing society must be able to make changes, so that it can direct where the national defense industry will be developed, so it is able to create companies that are reliable in producing defense equipment to preserve national sovereignty
Summary
Spesifikasi penelitian ini adalah deskriptif analitis, dengan pendekatan Yuridis. Normatif , yaitu penelitian yang bertujuan menggambarkan mengenai fakta-fakta disertai analisis yang akurat mengenai peraturan perundang-undangan penelitian yang menitikberatkan pembahasan pada data-data sekunder berupa bahan-bahan hukum, baik primer, sekunder maupun tersier, yang didukung data primer. 21 menjalaskan dalam Pasal 1angka 1 bahwa : “Industri Pertahanan adalah industri nasional yang terdiri atas badan usaha milik negara dan badan usaha milik swasta baik secara sendiri maupun berkelompok yang ditetapkan oleh pemerintah untuk sebagian atau seluruhnya menghasilkan alat peralatan pertahanan dan keamanan, jasa pemeliharaan untuk memenuhi kepentingan strategis di bidang pertahanan dan keamanan yang berlokasi di wilayah Negara Kesatuan Republik Indonesia. Industri pertahanan yang pengertiannya menyangkut hajat hidup orang banyak, hal tersebut menjadikan industri pertahanan merupakan bagian dari industri strategis di Indonesia yang dapat membantu berjalannya pembangunan nasional di Indonesia, hal ini dipertegas dengan pengertian industri strategis yang dijelaskan dalam Pasal 1 angka 4 Undang - Undang Nomor 3 Tahun 2016 tentang Perindustrian, dijelaskan bahwa :. 2. Perusahaan Perseroan (Persero) PT Pindad yang didirikan berdasarkan Peraturan Pemerintah Nomor 4 Tahun 1983 berkedudukan di Bandung dengan produk yang dihasilkan adalah Produk Militer yaitu Senjata Api dan Amunisi Non Militer di bawah Menteri Pertahanan Nasional. Undang - Undang Nomor 16 Tahun 2012 tentang Industri Pertahanan yang menjelaskan bahwa dalam penyelenggaraan industri pertahanan dan seluruh lembaga yang berkaitan dengan Industri Pertahanan serta sumber daya yang ada di dalamnya harus dapat menjalankan fungsinya masing - masing sesuai dengan kapasitas dan kapabilitas yang mengacu pada ketentuan di dalam Undang - Undang dan tidak melanggar moral
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