Indonesia Outlines USD 125 Billion Modernization Plan for the Military, Attracts Wave of Foreign Providers

Jun 2021

Indonesia has drafted an outline for an investment of USD 125 billion as part of a new 25-year modernization plan. The initiative is indicative of the country´s military ambitions and its growing concerns about regional security.

The draft details the requirement for the armed forces´ modernization funding over a period of five ‘strategic plans’, each lasting 5 years. The first strategic plan runs 2020–24 and coincides with the final phase of the Minimum Essential Force (MEF) program.

The country is heavily reliant on foreign suppliers. Some of the latest most notable deals include:

  • In June 2021, Fincantieri, an Italian player considered to be one of the most important shipbuilding groups in the world, signed a contract with the Ministry of Defense of Indonesia for the supply of 6 FREMM class frigates, the modernization and sale of 2 Maestrale class frigates, and related logistical support.
  • In the same month, the Indonesian Navy acquired two A-220M 57 mm naval guns from Russia. The Navy is now reported to be installing the first unit on a KCR-60M fast-attack craft.
  • The month before US company Allison Transmission confirmed its inclusion in the Indonesian program to build the Harimau medium tank for the Indonesian Armed Forces. The transmission is manufactured under license by Caterpillar Defense in the United Kingdom.

(Sources: Janes.com; Navy Recognition)