Industry Ministry Supports Industrial LEN to Become an Electronic-Based Technology Integrator in Defense Procurement

The Ministry of Industry seeks to make Indonesia independent in the production of the main weapon system equipment (defense equipment). This needs to be supported by spurring the capabilities of industry in the country so that they can take advantage of high technology while optimizing the use of local raw materials.

"Therefore, we encourage the important role of PT Len Industri (Persero) to support the Republic of Indonesia in the context of the independence of defense equipment, especially in the field of electronic-based technology," said Industry Minister Agus Gumiwang Kartasasmita to reporters during a working visit to PT Len Industri (Persero), Bandung. , West Java, Friday (4/6).

The Minister of Industry expressed his appreciation to PT Len Industri for its strategy in developing various superior products that contribute to maintaining the nation's sovereignty. 

"Seeing the role of PT Len as an integrator, the government will support the development of the electronics industry ecosystem to support the company's business processes," he said.

Development will be driven towards brainware or software in accordance with business characteristics that emphasize software to maintain security and safety. "Apart from being a lead integrator to meet the needs of electronic technology-based defense equipment, PT LEN also has two important operations, namely the development of the transportation industry, especially in the railway sector and the new renewable energy industry through the manufacture of solar panels," he explained.

According to Agus, the various innovations created by PT LEN Industri will be able to increase Indonesia's competitiveness and boost the national economy. "An example is the development of solar panels which is in line with the government's determination to encourage a green economy," he said.

The Minister of Industry also appreciated the efforts of PT LEN Industri to deepen the industrial structure down to the downstream to make solar cells by processing silica sand as raw material. "Of course, this effort will provide a multiplier effect for the Indonesian economy, both in terms of industrial capabilities and technology transfer," said Agus.

In addition, Len as the main player and the only railway signaling industry in Indonesia has been included in government projects. To strengthen the company's position in the domestic market, the implementation of the provisions on the domestic content level (TKDN) needs to be strengthened to ensure that products with a high TKDN value are not inferior to imported products. In the future, the company will target the export market with financial support from the government.

In order to support the productivity of PT LEN Industri, the Minister of Industry mentioned several important things that need to be encouraged, including facilitation of export convenience, meeting standard needs, and formulating TKDN. "This effort certainly needs support from relevant stakeholders, such as across ministries and agencies," he added.

Agus is optimistic that the performance of PT LEN Industri can be a source of pride for the Indonesian people. Therefore, the Ministry of Industry continues to encourage these state-owned companies to develop the electronics industry ecosystem in order to support their main business.

Become a Lead Integrator

President Director of PT Len Industri Bobby Rasyidin explained that his party will be the lead integrator of the defense industry BUMN and as the brainware of defense equipment used by the TNI, both in the land, sea, and air dimensions. So that a strong collaboration is needed between members of the defense industry BUMN, namely Len Industri, Pindad, Dirgantara Indonesia, Dahana and PAL Indonesia.

In contrast to other defense SOEs that focus on independence in producing defense equipment and ammunition, PT Len Industri in the defense industry SOE holding acts as a system integrator for these defense equipment. Whether it's new defense equipment produced domestically, abroad, or defense equipment that already exists in the TNI.

"To answer the challenge of fulfilling the role as an integrator, PT Len Industri has developed various defense line products starting from the Command & Control System (C2), Sensor System, and Communication System," added Bobby.

This development is needed in the development of a defense system integration system known as the integrated concept of C4ISR (Command, Control, Communication, Computer, Intelligence, Surveillance, and Reconnaissance) and implementing Network Centric Warfare (NCW) according to the doctrine and needs of TNI defense in Indonesia.

On the occasion of this visit, the Minister of Industry and his entourage saw first hand demonstrations of the S-200 Lens Surveillance Radar product, C4ISR Room, solar module production facilities and communication equipment production facilities (alkom).

Bobby expects support from the Ministry of Industry regarding special regulations for calculating TKDN for defense electronics products, including TKDN requirements in defense and transportation project tenders. "In addition, investment support in the construction of solar cell and semiconductor factories as well as the construction of an innovation center and a national radar industry that will be developed"