Arya Dipa, Bandung, West Java – The Defense Ministry signed contract agreements worth Rp 2.1 trillion (US$149.01 million) and $1.4 billion with several local companies in Bandung on Friday.
One of the agreements comprises 18 weaponry equipment contracts and the other comprises supporting military equipment contracts
"The contract agreements show the government supports the domestic defense industry," state-owned weapon maker PT Pindad Abraham Mose said in a statement, adding that the two contracts were the biggest ever signed between the ministry and multiple companies.
The signing ceremony was held at the Pindad headquarters and attended by Defense Minister Ryamizard Ryacudu and representatives of the companies.
The minister said the contracts were signed based on the reformed procurement system, which was quicker, more transparent and held parties accountable. "It is to accelerate the budget absorption to fulfill the needs of the weaponry system within the Indonesian Military (TNI)," he added.
Among the companies included in the contracts are Pindad, PT Merpati Wahana Raya, state-owned ship maker PT PAL, PT Megah Perkasa, PT Bandar Abadi, PT LEN, state-owned aircraft company PTDI, PT Dahana, PT Merpati Wahana Raya and PT Prasanda Dumayasa.
Under the agreement, Pindad will produce combat infantry, small caliber munitions and light weapons; PT Merpati Wahana Raya will construct vehicles to transport nuclear, biological and chemical materials and vehicles for explosive materials; PT PAL will construct a submarine; and PTDI will build the Super Puma NAS-332 C1+ helicopter.
The helicopter, which is equipped with an avionic glass cockpit and optic sensor attitude heading and reference system, can fly for hours at up to 306 kilometers per hour. It can transport 18 passengers and three crew members at a time and be used for military transportation, cargo, paratrooper transportation, medical evacuations and VIP transportation. Previously, the company had sent the Super Puma NAS-332 C1+ to the ministry. (bbn)