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Defense and Security

Indonesia faces a complex and dynamic strategic environment. The government is working on national political and economic reforms; however homeland security issues still threaten the well being of Indonesians. 

These include civil tension, religious radicalism, and terrorism. Changing power structures have been a dominant theme in East Asia in recent years.  In this regard, Indonesia is concerned about the implications of long-standing territorial disputes, their attendant military threats to regional stability, and cohesion within the ASEAN.

Indonesia also has many natural resources including oil, gas, gold, cooper, silver and spices. Because these resources must be protected and defended, Indonesia devotes more effort to defense and security than other regional countries. Currently the country has focused on improving its defense and security sector. Within that context, the main priority is the development of  a program for improving minimum defense strength and replacing of outdated major weapons systems and equipment. The Indonesian defense and security strategic plan for 2010-2014 needed about US$31 billion to fulfil its defense and security needs, most of which, according to Indonesia’s Ministry of Defence, were allocated to pursue the development of minimum essential force, revitalisation of national defense and security industry, prevention of maritime crimes and defense modernization.

Reports in 2014 cite the government aims to boost defense spending from 0.8 percent to 1.5 percent of gross domestic product over the next five years, putting it on par with neighbors such as Malaysia.




The aviation industry in the Asia-Pacific region has shown robust growth in recent years. This region is one of the world’s fastest growing with regard to air travel. In the next 20 years, an average annual 7 percent growth in air traffic is expected




The Indonesian  ammunition market is dominated by the state-owned defense company PT. PINDAD, one of the biggest ammunition manufacturers in Indonesia.


Safety and Security


Market demand for the safety and security industry in Indonesia is proportionally increasing with levels of perceived insecurity by the population.  Improving commercial and public safety is a priority for the country.


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