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Indonesian Defense Industries Shadowed by US-China Trade War

18 Oktober 2018   13:37 Diperbarui: 18 Oktober 2018   13:41 1725
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https://www.marketwatch.com/story/cheaper-bacon-and-pricier-electronics-how-trade-war-with-china-impacts-you-2018-04-04

US-China Trade War effect on Indonesian Defense Industries is imminent. The struggle for domination of weapon market in Indonesia, between East and West power, is almost at its peak. Although it is unseen under the radar.

Pivotal role for this weapon market competition is played by Komite Kebijakan Industri Pertahanan (KKIP). This defense industry policy committee is the last determinant voice that gives green or red light when an arms purchase deal is on the table. They are also responsible for Indonesian defense industries production capabilities.

Whether the government's decision on the purchase of weapons fell on the Domestic Defense Industry or bought from abroad was in the hands of KKIP. That reason makes KKIP play an important role in determining Indonesia's alignments at the Regional level, especially in the atmosphere of upcoming South China Sea War.

The heat of US-China Trade War encourages Indonesia to overhaul KKIP's Management before 2018 ends. The decision to buy weapon from whom, could be seen as Indonesia's alignment in the United States - China competition.

It's a crucial point nowadays for Indonesia, especially for President Joko Widodo's political agenda and his industrial revolution 4.0 target.

Should President Joko Widodo get the right regional back up for his second term's race, or he might lose just because he wrongfully stepped. If he picked the wrong person to fill KKIP or Indonesian determinant weapon agency, he could fulfill the opposition's dream of #2019GantiPresiden (2019 change the President), a social movement popular in Indonesia now.

A secret source for Pacific Propaganda, who closely deals with the matter whispers that Defense Minister Ryamizard Ryacudu has compiled a list of new KKIP management that will be announced this month.

The key persons of that list are:

Marsekal Madya (ret.) Ismono as chairman. And two vice chairmen, namely Letjen. Thamrin and Laksdya (ret.) Arie Sudewo.

Ryamizard's list of KKIP also put 6 other heads of divisions consist of retired officer from the State Intelligence Agency, Police, National SAR Agency, and 3 representatives of Private Defense Industry sector. The names are Indra Surya Djani, Glenn Yusuf, and another person known closed to businessman Tommy Winata. The last person's name is still uncertain until now.

Indra Surya Djani is the director of Utama Citra Persada, an agent who supplies APC BMP3 tanks for the Marines. While Glen Yusuf is a former Head of Indonesian Banking Restructuring Agency (IBRA) affiliated with Sky Aviation. Several years ago, Sky Aviation with Queen Air and Kartika Airlines bought 46 Sukhoi (SSJ-100) worth USD 1.2 billion.

We understand that Tommy Winata's representative incoming in the Ryamizard KKIP List was to block Australian requests. Regarding the recent diplomatic lobbying between Indonesia and its Southern Neighbor, Australia gave a condition in the form of a list of Australian KKIP which included the name of former TNI Commander Gatot Nurmantyo as Chairperson of KKIP.

From what we heard, this is the list of Australian's KKIP version. General (ret.) Gatot Nurmantyo as chairman, and Letjen Thamrin with Major General (ret.) Yussuf Solichien as it's two vice chairmen.

Almost all head of divisions in Australian version of KKIP lists contain names from retired army generals. Because according to Australia, it is too risky to put the fate of Indonesia's arms trade in the hands of the Indonesian Navy, Air Force, Police, Intelligence Agency, or SAR Agency. Moreover in the midst of the heightening of Australia's diplomatic position against Indonesia, China, Southeast Asia and the southern Pacific region.

Responding to the List of Australian KKIP, Ryamizard seemed ready to succumb to Gatot Nurmantyo. For Ryamizard, if the Australian KKIP List was approved by Mr. Joko Widodo, Lieutenant General Thamrin could be the key to securing Ryamizard's position in both list.

The list of KKIP Ryamizard or List of Australia KKIP that will be taken by Mr. Joko Widodo is closely related to the ongoing Indo - Aussie diplomatic lobby, as well as political calculations to win the 2019 Election. We know that Joko Widodo can be very surprising in determining alignments, as seen from the appointment of MUI Chair Maruf Amin as vice president who previously was a political enemy of Mr Joko Widodo's administration.

Pacific Propaganda is only in a waiting position while observing.

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