Danantara and BP BUMN Signal Major Investment Push for Indonesia's Defense Industry, Starting With Pindad
BP BUMN head and Danantara COO Dony Oskaria said the government will invest heavily to strengthen the national defense industry, naming Pindad as the first capacity-building recipient; Defend ID booked Rp26.06 trillion consolidated revenue in 2024.
Indonesia's sovereign wealth apparatus is preparing large-scale investment for the national defense industry. Dony Oskaria, head of the State-Owned Enterprises Restructuring Board and chief operating officer of Danantara, said the government aims to strengthen the industry with substantial capital and current technology, remarking that the country does not intend to remain a follower. PT Pindad was named the first recipient of capacity-building support, justified by the certainty of domestic offtake.
The context figures come from company disclosures quoted in the report: defense holding Defend ID recorded Rp26.06 trillion in consolidated revenue for 2024 with Rp2.1 trillion in exports, while Pindad booked Rp25.8 trillion in contracts and Rp7.98 trillion in sales for the same year.
As a statement of policy intent, the announcement has no published budget or program yet, and the revenue figures cited are from 2024. Its significance is directional: expanded production capacity, new facilities and growing organizations in the defense holding typically translate over a few years into corporate systems demand, from ERP and supply chain platforms to technical document management and quality control, in a sector that has historically relied on large incumbent IT providers.