Abstract
In order to realize defense and security in accordance with the times, Indonesia is obliged to produce the main weapons system equipment independently. The target of achieving the minimum essential force (MEF) has an impact on the development of the domestic defense industry. Government policy regulations related to the defense industry and the development of defense human resources have been regulated in Law Number 16 of 2012 concerning the Defense Industry. This research was carried out through descriptive qualitative studies, literature study techniques sourced from books, journals, and national data. This study describes an analysis of the constraints faced by PT Pindad in an effort to become self-reliant in the defense industry. The transfer of technology process carried out by PT Pindad encountered obstacles such as the availability of company technology and a very short time in meeting the Minimum Essential Force (MEF) III target. Based on the capabilities of its resources, to prove that the Indonesian defense industry is able to compete with other countries' defense industries, PT Pindad has several grand strategies which include efforts to optimize the use of fixed assets and increase product sales, increase profitability, and increase working capital.
Highlights
Indonesia is the biggest archipelago country in the world
The context of the defense industry in Indonesia in accordance with Article 1 paragraph 1 of Law Number 16 of 2012 states that "The defense industry is a national industry consisting of state-owned enterprises and privately-owned enterprises, either in groups determined by the government to partially or wholly produce defense and security equipment. maintenance services to fulfill strategic interests in the field of defense and security located in the territory of the Unitary State of the Republic of Indonesia”
RESULT AND DISCUSSION Law Number 16 of 2012 concerning the Defense Industry was made in the context of empowering the domestic defense equipment industry by purchasing, renewing, and meeting the needs of the main defense system equipment in accordance with the Minimum Essential Force (MEF)
Summary
Indonesia is the biggest archipelago country in the world. There are thousands of islands with a very long coastline stretching from Sabang to Merauke. In the scope of international relations, defense cooperation between countries has been carried out through cooperation in the purchase of weapons, modernization of defense equipment and the current trend is the transfer of weapons technology. The context of the defense industry in Indonesia in accordance with Article 1 paragraph 1 of Law Number 16 of 2012 states that "The defense industry is a national industry consisting of state-owned enterprises and privately-owned enterprises, either in groups determined by the government to partially or wholly produce defense and security equipment. The research is intended to analyze the data by using data reduction techniques
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