The Indonesian Ministry of Defence (MoD) is anticipated to increase the nation’s capital expenditure in defence to $3.3bn by 2021, in an effort to modernise the Indonesian Armed Forces under the Strategic Plan 2024, according to a report by Strategic Defence Intelligence (SDI).
Titled 'Future of the Indonesian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2021', the report outlines the various defence programmes that will see increased capital budget allocation in next five years.
Indonesian MoD’s major procurements include the Sukhoi Su-30MK2 aircraft, Su-27 SKM multi-role fighters, Su-35 fighters, AH-64 Apache Longbow gunship helicopters and Leopard main battle tanks (MBTs).
The nation is also anticipated to invest in infrastructure development, multi-role aircraft, cyber security, border security, unmanned aerial vehicles (UAVs), radar systems and computer network defence capabilities, which will further stimulate the growth in its capital spending.
Majority of the military equipment are imported from foreign countries, with 43% of imports coming from Russia, including Su-30MK/Flanker fighters, Mi-17V5 multipurpose helicopters and Su-27SKM fighters, states the report.