Indonesia strengthens domestic manufacturing and defense industries

Indonesia is implementing strategic measures to protect and bolster its domestic manufacturing and defense sectors. To safeguard the national manufacturing industry, which accounts for approximately 78.39% of products marketed domestically between 2019 and 2026, the government is utilizing various instruments. These include import substitution, increased domestic product spending, local content requirement (TKDN) reforms, stricter import restrictions, and the expansion of mandatory Indonesian National Standards (SNI). The ceramic sector has already seen positive results, with factory utilization rising from 63% to a projected 75% by 2026 following the implementation of anti-dumping duties.

In the defense sector, Minister of Defense Sjafrie Sjamsoeddin inspected PT LEN Industri in Bandung to ensure the country's capability to meet national defense modernization needs. The inspection focused on electronic production capabilities, including radar systems, drones, tactical communication systems, and optronic devices. The Ministry of Defense emphasized the importance of interoperability, allowing domestic systems to connect and exchange data seamlessly. PT LEN Industri, as part of the DEFEND ID defense industry holding, aims to serve as a primary integrator of defense electronics through synergy with the military and national industries.