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GEMA INDONESIA 2 EDITION 2020
nd

ENHANCING between The Department of De- ro) regularly supplies local compo-
fense and Security of the Repub-
nents and develops infrastructure,
BILATERAL lic of Indonesia and The Ministry while conducts expert training and
of Defense of the Italian Republic technology transfer.
DEFENSE on the Cooperation in the Field of
Defense Equipment, Logistics, and The defense industry is one of the
Industry, signed back in 2013. This main sectors and strategic contrib-
COOPERATION bilateral defense cooperation have utors to Italy’s national economic
been focusing on equipment and growth. The current COVID-19
BETWEEN technology transfers, port visits, as pandemic, however, is predicted
well as capacity building.
to affect the industry in the long
INDONESIA Indonesia is one of potential part- term. An observer said that, there
are at least five major impacts of
ners as well as customers for Italy’s COVID-19 to defense industry.
AND ITALY weaponary products, while Indo- First, production facilities and sup-
nesia sees Italy as a reference point ply chains disruption. Second, it
aintaining and enhanc- for joint military equipment devel- may hamper business development
efforts. Third, demands for defense
opment and production. The coop-
ing good bilateral ties eration between PT. Len Industri equipment and related services
Mwith European countries (I n do - nesian Persero) could decrease. Fourth, defense
has always been a strategic impor- with Leonardo S.p.A companies may have to prioritize
tance to Indonesia’s foreign policy, in the joint their spending that could impact
including in the field of defense production their finances and competencies.
and military of the Me- Fifth, the decline of stock price that
cooper- di um could bring secondary effects. In
R ange Italy, the pandemic has suspended
Radar the operations of one of the world’s
De- largest shipbuilding groups, Fin-
ation. cantieri. The company is well-
known for its complex design of
W i t h warships for many countries. With
Italy, In- the suspension, the company loses
donesia’s foreign cooperation opportunities.
bi l atera l fe ns e
cooperation RAT 31 Indonesia and Italy is currently
st
on this field DL/M could exploring the possibility of hold-
is conduct- be one of the success ing the Third Joint Committee for
ed under the stories in this sector. In the Defense Cooperation (JCDC) this
Memorandum scheme, PT. Len Industri (Perse- year, on 19 -23 October. Yet, due
th
rd
of Understanding (MoU)

14 POLITICAL SECURITY