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    This document summarizes a presentation about defense development in Indonesia. It discusses how Habibie, a former president of Indonesia, envisioned strategic industries that integrated civil and military technology. This included establishing companies like IPTN that developed dual-use technologies like aircraft. Habibie created a progressive manufacturing plan to develop Indonesia's defense industry through stages of technology development and integration. The presentation argues this strategic industry model can spur economic and industrial growth through spill-over effects if the country identifies and nurtures key sectors and develops a technology strategy to sponsor higher level ambitions and create a world-class defense industry.

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    Defence

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    1. Prof. Ron Maathews

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    This document summarizes a presentation about defense development in Indonesia. It discusses how Habibie, a former president of Indonesia, envisioned strategic industries that integrated civil and military technology. This included establishing companies like IPTN that developed dual-use technologies like aircraft. Habibie created a progressive manufacturing plan to develop Indonesia's defense industry through stages of technology development and integration. The presentation argues this strategic industry model can spur economic and industrial growth through spill-over effects if the country identifies and nurtures key sectors and develops a technology strategy to sponsor higher level ambitions and create a world-class defense industry.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views13 pages

    Prof. Ron Maathews

    Uploaded by

    Berwi Fazri Pamudi
    This document summarizes a presentation about defense development in Indonesia. It discusses how Habibie, a former president of Indonesia, envisioned strategic industries that integrated civil and military technology. This included establishing companies like IPTN that developed dual-use technologies like aircraft. Habibie created a progressive manufacturing plan to develop Indonesia's defense industry through stages of technology development and integration. The presentation argues this strategic industry model can spur economic and industrial growth through spill-over effects if the country identifies and nurtures key sectors and develops a technology strategy to sponsor higher level ambitions and create a world-class defense industry.

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    © All Rights Reserved
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    of 13

    IIDSS-UNHAN: International Defence

    Science Seminar

    Defence ‘and’ Development:


    The Case of Indonesia

    Prof. Ron Matthews


    Cranfield University
    Structure of Talk
    • Introduction

    • Economic downsides of defence

    • Highlighting the positives

    • Habibie: Ahead of his time!

    • Policy implications
    Introduction
    • Getting your (defence) cake and eating it!

    • Problems magnified for emerging nations

    • Significance of Defence Economics


    Economic Downside of
    Defence
    • Opportunity cost

    • Keynes ‘crowding-out’

    • Detached from civil economy?

    • Rapid obsolescence
    The Positives!
    • Hybrid product structure

    • Potential for spin-off

    • Dual-use technology

    • Civil-military value chains


    Habibie: Ahead of his time!?
    • Economic / industrial take-off

    • Strategic industry model

    • Transformation into PMP


    - Captive market
    - Dual-use technology
    - Civil-military integration
    - Technology spearhead
    CN-235
    Habibie’s Progressive Manufacturing
    Plan

    Stage Capability Stage Technology Stage Technology Stage Basic Research


    Development Integration Development on Large Scale
    1 2 3 4

    Savitri, Curie M (2017). Contribution of offset to defence industrialisation in Indonesia. PhD dissertation,
    Cranfield University, UK
    Habibie: Ahead of his time!?
    • Economic / industrial take-off

    • Strategic industry model

    • Transformation into PMP


    - Captive market
    - Dual-use technology
    - Civil-military integration
    - Technology spearhead
    Condor 4x4
    Ten Strategic Industries in Indonesia
    No Industry Founded Product

    1 PERUM DAHANA 1966 Explosives

    2 PT Boma Bisma Indra (BBI) 1971 Machine tools, construction equipment

    3 PT Barata Indonesia 1971 Machinery and engineering service

    4 PT Industri Telekomunikasi (INTI) 1974 Telecommunication

    5 PT IPTN 1976 Aircraft, weapon systems

    6 PT Krakatau Steel 1978 Integrated iron and steel product

    7 PT PAL Indonesia 1980 Shipbuilding, general engineering

    8 PT Industri Kereta Api (INKA) 1981 Rolling stock

    9 PT PINDAD 1983 Small arms and heavy equipment

    10 LEN Production Unit 1965 Electronics and communication

    Savitri, Curie M (2017). Contribution of offset to defence industrialisation in Indonesia. PhD dissertation,
    Cranfield University, UK
    Habibie: Ahead of his time!?
    • Economic / industrial take-off

    • Strategic industry model

    • Transformation into PMP


    - Captive market
    - Dual-use technology
    - Civil-military integration
    - Technology spearhead
    Strategic Industry and Spill over Effects

    Savitri, Curie M (2017). Contribution of offset to defence industrialisation in Indonesia. PhD dissertation,
    Cranfield University, UK
    Policy Implications
    • What goes around, comes around!
    • Policy focus on wider DIB
    • Identify and nurture strategic sector
    • Develop Indonesian technology strategy to sponsor/exploit higher
    level technology ambitions, creating a world class defence industry.

    Chang Bogo-class
    Terima Kasih / Thank You

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