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Home > Archives > Volume 20, No 8 (2022) > Article

DOI: 10.14704/nq.2022.20.8.NQ44873

Defense Industry Arrangement; Between Business and National Security, Case Study of Defense Industry Development in Indonesia

Yoedhi Swastanto, Sunarko, MhdHalkis, Priyanto


The government's policy to innovate defense technology for developing countries needs to consider the needs of the domestic military rather than seeking economic benefits. However, in a democratic government, the private sector demands more involvement in seizing the global market and the local market. The purpose of this study is to explain the arrangement of the defense industry in Indonesia since the enactment of the Defense Industry Law. Through a phenomenological approach, the researchers found the defense industry's arrangement, the significance of the independence aspect, the dominance of the development of private companies, and the legitimacy of the defense industry development policy. The researcher suggests that the direction of the development of the defense industry is not purely looking for economic benefits.However, aspects of the impact of the development of the defense industry and comprehensive strategic cooperation with partner countries are considered in making government policies. The involvement of the private sector is growing and requires state-owned companies to be more open in seeking independence through development and innovation rather than independence, which is defined as meeting the needs of the domestic military with homemade products.


Defense industry, innovation, strategic partners, Transfer of Technology (ToT), and independence

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