The Development Of Indonesia's Defense Industry Economic Independence Through Offset Schemes: License, Co-Production, and Codevelopment

Abstract

The purpose of this study discusses the acceleration of the mastery of defense technology in the development of the independence of the Indonesian defense industry economic through offset schemes: license, coproduction, and codevelopment. This research is a qualitative research, the type of research uses a comprehensive analytical study and analytical normative approach. In order to be independent of the domestic defense industry, the purchase of a defense equipment product must be accompanied by a process of technology transfer through an offset mechanism or the level of achievement of technology transfer from foreign producers into the country. The implementation of the defense offset mechanism for the procurement of defense equipment has been ongoing since the early 1960s, although it was only effectively carried out when PT DI, PT. PAL and PT. PINDAD established cooperation with strategic weapons and industrial producing countries in the mid 1970s, with a variety of strategic weapons and industry variations, ranging from light weaponry, rockets, helicopters, fast boats, corvettes, to aircraft. The defense offset mechanism in the procurement of defense weapons has been carried out with three types of offsets: purchasing licenses, coproduction, and codevelopment.