How Prabowo Saved Indonesia’s 3 Defense Firms from Sale to Foreigners

How Prabowo Saved Indonesia’s 3 Defense Firms from Sale to Foreigners

How Prabowo Saved Indonesia s 3 Defense – In a pivotal effort to strengthen Indonesia’s national defense capabilities, President Prabowo Subianto has been instrumental in preserving the country’s three major defense firms—PT Pal, PT Pindad, and PT Dirgantara Indonesia (PT DI)—from potential foreign acquisition. The decision to shield these state-owned enterprises from international investors has sparked significant discussion, as Prabowo emphasized that their strategic importance to national security and economic growth cannot be overstated. By taking decisive action, Prabowo not only ensured the continuity of these critical industries but also reinforced Indonesia’s position as a self-reliant military power in the region.

Strategic Moves at the Meninting Dam Ceremony

During the inauguration of the Meninting Dam in West Lombok, Prabowo provided a platform to highlight his intervention in the defense sector. “Three companies were at risk of being sold to foreign entities, but I ensured their survival,” he said, as reported by Antara. This moment underscored Prabowo’s broader commitment to safeguarding Indonesia’s industrial sovereignty. Prior to his leadership, these firms faced challenges such as inefficiency, declining production, and a lack of strategic direction. Under his tenure, they have been revitalized with a clear vision to enhance technological innovation and operational capacity.

“At one point, the defense industry was under threat. PT Pal, PT Pindad, and PT DI were nearly handed over to foreign buyers. Our actions have reversed that trend. Now, these companies are operating at full potential,” Prabowo explained.

Defend ID: A Unified Defense Sector Strategy

The creation of the Defend ID holding company in 2022 marked a crucial step in consolidating Indonesia’s defense capabilities. This initiative, which includes PT Len Industri as its parent entity, has positioned the three firms as core components of a centralized defense framework. By unifying their operations, the government aims to streamline production, reduce redundancy, and boost competitiveness in both domestic and international markets. Prabowo’s leadership in this restructuring has been pivotal, ensuring that these firms remain under national control and are better equipped to meet the country’s military demands.

Prabowo’s efforts have also secured major contracts for PT Pindad, including a landmark deal with Saudi Arabia. “Our rifles and machine guns are now being manufactured for the Saudi military, a testament to the quality and reliability of our defense equipment,” he noted. This international recognition highlights how Prabowo’s strategy has not only protected these firms from foreign takeover but also elevated their global standing. The success of such contracts is a direct outcome of the government’s commitment to modernizing and expanding Indonesia’s defense manufacturing sector.

Scorpene-Class Submarines: A Symbol of National Resilience

In early July 2026, PT Pal embarked on a significant milestone with the start of steel-cutting for two Scorpene-class submarines. Collaborating with France’s Naval Group, this project represents a strategic leap in Indonesia’s naval capabilities, as the submarines will be fully assembled at PT Pal’s Surabaya shipyard. The Scorpene design, known for its advanced stealth technology and combat efficiency, was initially developed by the French firm but is now being adapted to meet Indonesia’s specific requirements. Prabowo’s intervention has enabled this indigenous production, ensuring that the country can rely on its own defense infrastructure without external dependence.

Prabowo’s focus on these firms