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GEMA INDONESIA EDISI KE-2/2020

ENHANCING between The Department of De- success stories in this sector. In the
fense and Security of the Repub-
scheme, PT. Len Industri (Persero)
BILATERAL lic of Indonesia and The Ministry regularly supplies local compo-
of Defense of the Italian Republic nents and develops infrastructure,
DEFENSE on the Cooperation in the Field of while conducts expert training and
Defense Equipment, Logistics, and technology transfer.
Industry, signed back in 2013. This
COOPERATION bilateral defense cooperation have The defense industry is one of the
been focusing on equipment and main sectors and strategic contrib-
BETWEEN technology transfers, port visits, as utors to Italy’s national economic
well as capacity building.
growth. The current COVID-19
INDONESIA Indonesia is one of potential part- pandemic, however, is predicted
to affect the industry in the long
ners as well as customers for Italy’s term. An observer said that, there
AND ITALY weaponary products, while Indo- are at least five major impacts of
nesia sees Italy as a reference point COVID-19 to defense industry.
aintaining and enhancing for joint military equipment devel- First, production facilities and
supply chains disruption. Second,
opment and production. The coop-
good bilateral ties with eration between PT. Len Industri it may hamper business develop-
MEuropean countries has (Indonesian Persero) with ment efforts. Third, demands for
always been a strategic importance Leonar- do S.p.A in defense equipment and related
to Indonesia’s foreign policy, in- t h e joint pro- services could decrease. Fourth,
cluding in the field of defense and duction defense companies may have to
military coop- of the prioritize their spending that could
erat ion. Me - impact their finances and compe-
With di - tencies. Fifth, the decline of stock
It - price that could bring secondary
a l y, effects. In Italy, the pandemic has
In - suspended the operations of one
do - of the world’s largest shipbuilding
nesia’s groups, Fincantieri. The compa-
bilateral ny is well-known for its complex
cooper- design of warships for many coun-
ation on tries. With the suspension, the
this field company loses foreign cooperation
is conduct- u m opportunities.
ed under the Range Ra-
M em o r a n - dar Defense RAT 31 Indonesia and Italy is currently
dum of Under- DL/M could be one of the exploring the possibility of hold-
standing (MoU)

14 POLITICAL SECURITY