Indonesia Acquisition Policy and Technology Understanding

8/9/2019 Indonesia Acquisition Policy and Technology Understanding

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David Raja Marpaung. Associate Lecture University of Indonesia, also Ind

Indonesia Acquisition Policy andTechnology Understanding

By: David Raja Marpaung S.Ip, M.Def


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Defence Framework

Indonesia Position Defence ComponentIndonesia Area almost 8 Millions KM SquareSea Area is 6 Millions KM Square TNI

Indonesia Consist of 17.504 IslandsStrategic Area Citizen Natural Resources Infrastructure

National Industry Professional/Expert Nation Guard Others

Support Component

PrimeComponent

Back Up Component


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National Defence System

President LegislativeSecurity and DefenceCouncil

MOD

TNI Commander

Chief of Staff

Defence Framework PolicyOperational and Logistic PolicyDefence Development Policy

Military Strategy and MilitaryOperation Policy

Develop and Maintain MilitaryCapabilityMilitary Operational Readiness

OGM


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Scope of Defence Framework

Global

Regional

National

Defence Procurement Policy
http://smb//tmp/sv25.tmp/Indonesia%20Defence%20Global%20Policy.dochttp://smb//tmp/sv25.tmp/Indonesia%20Defence%20Global%20Policy.dochttp://smb//tmp/sv25.tmp/Indonesia%20Defence%20Global%20Policy.doc


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USAPDB : US$ 13.500 M

Defence : US$ 582 M

(3,7 % PDB)

RUSIAPDB : US$ 1.670 M

Defence: US$ 30 M(1,6 % PDB)

JAPANPDB: US$ 4.560 M

Defence : US$ 41,1 M(0,9 % PDB)

Global Defence Budget

( ATO minus & )S CanadaPDB : US$ 10.200 MDefence : US$ 188,5 M

(1,4 % PDB)

RRCPDB: US$ 2.620 MDefence: US$ 35,3 M

(1,6 % PDB)

AUSTRALIAPDB: US$ 749 MDefence: US$ 15,1 M(2 % PDB)

INDONESIA

PDB: US$ 346 M

Defence: US$ 2,6 M

(0,8 % PDB)

INDIAPDB: US$ 839 MDefence: US$ 22.3 M

(2,6 %PDB)

Year 2006, source: White Papers Indonesia


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South East Asia Defence Budget

INDONESIAPDB: US$ 346 MDefence: US$ 2,6 M(0,8 % PDB)

FILIPINAPDB: US$ 118 MDefence: US$ 0,9M

(1,1 % PDB)

BRUNEIPDB: US$ 6 MDefence: US$ 0,36 M

(6 % PDB)

SINGAPURAPDB: US$ 132 MDefence: US$ 10.05 M

(7,6 %PDB)

MALAYSIAPDB: US$ 143 MDefence: US$ 3,08 M

(2,2 % PDB)

THAILANDPDB: US$ 207MDefence: US$ 2,2M

(1,9 % PDB)

MYANMARPDB: US$ 75 M

Defence: US$ 6,2 M(6 %PDB)

LAOSPDB: US$ 2,9 M

Defence: US$ 0,014 M(0,4 % PDB)

VIETNAMPDB: US$ 61,1MDefence: US$ 3,4 M

(6,3 % PDB)

Year 2006, source: White Papers Indonesia
http://smb//tmp/sv25.tmp/Comparing%20Asean%20Military%20Power.pptxhttp://smb//tmp/sv25.tmp/Comparing%20Asean%20Military%20Power.pptx


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Defense Acquisition Policy

L e g a l

u m b re l l a

f o r

A c q ui s i t

i o n
http://smb//tmp/sv25.tmp/Military%20Policy%20Goals.pptxhttp://smb//tmp/sv25.tmp/Military%20Policy%20Goals.pptx


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Defense ProcurementPolicyq

Law of National Budgetq

qPresidential Decree(Keppres) 80/ 2003 aboutGovernment Procurement of Goods and Services

qKepmenhan RI No PER/07/M/VII/2006about The Procedures of Military Goods and ServicesProcurement by Using Export Credit Facility in theDefense Ministry and Military Area

qqKepmenhanRI No PER/06/M/VII/2006 about The

Implementation of Military Goods and Services in theDefense Ministry and Military Area


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v Law of National Budget -> This law renew in every year and become financial

and operational reference for government institution ordepartment. defence budget

vKeppres 80/ 2003keppres 80-2003.pdf

-> Arranged goods and services procurement whichover than Rp 50 billion need agreement from Minister/Military Commander/ Institution Leader/ Bank ofIndonesia Governor Institution/ Leader of BHMN/ BUMNAdministration

-> Regulate procurement system: election method,

demand method, evaluation method, and kind ofcontract.
http://smb//tmp/sv25.tmp/Indonesia%20Defence%20Budget.dochttp://smb//tmp/sv25.tmp/keppres%2080-2003.pdfhttp://smb//tmp/sv25.tmp/keppres%2080-2003.pdfhttp://smb//tmp/sv25.tmp/Indonesia%20Defence%20Budget.doc


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-> Issued as a national standard regulationpromoting basic principles of procurement:transparency, open and fair competition,efficiency (value for money), non-discrimination,and accountability.

-> Prevent and detect fraudulent and corruptionin public procurement through integrity pact.


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vKepmenhan RI No PER/07/M/VII/2006

-> regulates the supply of goods and services tothe Ministry of Defence and the TNI through theexport credit facility.

-> Procurement of weapons which more than Rp50 billion use export credit facility


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vKepmenhan RI No PER/06/M/VII/2006 -> Stressed that procurement of goods and services

through non export credit facility or use national budgetor pure rupiah

-> DefenceMinister more than Rp 50 billion TNI Commander more than Rp 50 billion Chief of Organization Unit more than Rp25 - 50

billion


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User

Ministry of DefenseSupplier

Procurement Committee+

Inter-ministerial Team


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NO CONTRAC

T

BUDGET STATE CASES OWNE

R

REMAR

KS1. Scorpion Tanks100 units

159.984.607 Britain Mark up Army New

2. Battle Ship 39 units USD 466 Germany Mark upunefficiency

Navy Ex Germany

3. Air Fighter Sukhoi2 units

USD 192,2 Rusian Avionik Air force New

4. Mi-2 Helicopter

16 units

US $ 11,176 Rusian Unclear

Suplier

Navy New

5. Mi-17 Helicopter 4 units

USD 21,6 Jt Rusian Corruption Army New

Cases of Acquisition in Indonesian MODCases of Acquisition in Indonesian MOD


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TECHNOLOGY AND DEFENCE ACQUISITION

Implication of New Technology:

weapon platform that big and clear sensitive and highcost Rise of utilizing small unit

Rise of interest to no become target Warfare continue Needs of logistic will change Base and logistic support that big and permanen which notprotect become sensitive

Increasing surprise attact Increasing requirement and programming total defence Increasing cost of military system Increasing capability of terrorism


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Influence Toward Unit In Operation

DEPLOYMENT OF TROOPS

MOVE

COMMUNICATION

HIDDEN

ATTACK

DEFENCE


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Technology Acquisition

Planning

Accurate information

Selection criteria

Structured process

Vendorclient relation

Top management support

Communication Balanced team

User involvement

Use of consultant

Clear goals and objectives.


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Technology Implementation

Project Management

Process redesign

User training

Technological infrastructure

Change management

Risk management.

Top management support

User involvement

Use of consultant


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Future Joint Logistic Vision 2010

Joint logistics of the Indonesian national defenceforce is an integrated actions of:

Indonesia national defence HQs

Government Ministry of Defence

National Defence Industry

Private Company

Its aimed in the framework of strengthmanagement and strength utilization programof TNI

St t i I t t


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Strategic Investment

Priorities

Affordability

Dual Use

Accelerated TransitionA Strong Technology Base


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Acquisition Objectives

Information Superiority

Precision Force

Combat Identification

Joint Theater Missile DefenseMilitary Operations in Urban Terrain

Joint Readiness

Joint Countermine

Chemical/Biological Agent DetectionReal-Time Logistics Control

Counter proliferation


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Future Integrated Equipment

Central Commando

Radar/Censor

Communication

Equipment

Mission

and

Objective


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Conclusion and Recommendation

MoD and logistic staff is responsible for TNIlogistic, including the arrangement ofplanning, material procurement, and other

logistics support required by service. The procurement must be linear with Indonesia

defence policy

Indonesia procurement still dependence to

another country. There are still less supportfrom national strategic industry.


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National defence industry and private company

assist TNI in material and special equipmentprocurement

Defence acquisition needs more budgetsupport to develop TNI capability.

MoD need to develop new acquisition systemin order to reduce corruption and fraud.

Joint logistic vision in 2010 is very important toenhance the TNI capability in the future.


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References

Asian Defence Journal (various issues)Armed Forces Journal InternationalAsian Military Review

Friedman, George, and Friedman, Meredith, TheFuture of War (New York: Crown, 1996)

Ganesan, N, Bilateral Tensions Among theASEAN States (Singapore: Institute of

Southeast Asian Studies, 2000)Indonesia White Papers 2008. Indonesia MOD,

Jakarta, 2008


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Indonesia Defence Strategy. Indonesia MOD,

Jakarta, 2008Indonesia Defence Doctrine. Indonesia MOD,

Jakarta, 2008Buletin Balitbang DephanJakarta Postwww.kompas.comwww.detik.com

www.suaramerdeka.comwww.tempointeraktif.com
http://www.kompas.com/http://www.detik.com/http://www.suaramerdeka.com/http://www.tempointeraktif.com/http://www.tempointeraktif.com/http://www.suaramerdeka.com/http://www.detik.com/http://www.kompas.com/

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Indonesia Acquisition Policy and Technology Understanding

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