1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023
3.1.6. Social, Political and Economic Environment & Support for Defense Projects
3.1.7. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Indonesian defense budget is expected to reach US$11.1 billion by 2023, at a CAGR of 6.52%
3.2.2. Defense expenditure is driven by the modernization of the armed forces, indigenization, territorial disputes, and natural disasters
3.2.3. Defense budget as a percentage of GDP expected to increase over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure share of defense budget is expected to increase to an average of 34.5% over the forecast period
3.3.2. Capital expenditure to increase over the forecast period
3.3.3. Per capita defense expenditure expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security expenditure is expected to grow at a CAGR of 8.28% during the forecast period
3.4.2. Border Security and Terrorism will drive the homeland security market over the forecast period
3.4.3. Indonesia is considered as ‘highly affected’ by terrorism
3.4.4. Indonesia faces high level of threat from foreign terrorist organizations
3.4.5. Indonesia has a terrorism index score of 4.6
3.5. Benchmarking with Key Global Markets
3.5.1. Indonesia’s defense budget expected to register rapid growth over the forecast period
3.5.2. Indonesian defense expenditure is relatively small compared to other Asian countries
3.5.3. The Indonesian defense budget as a percentage of GDP is expected to slightly decrease during 2019-2023
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top Defense Sectors by Value (US$ Million)-Projection over 2018-2023
3.6.2. Military Infrastructure and Logistics
3.6.3. C4SIR-Land Based
3.6.4. Maritime and Border Security - Maritime surveillance and detection
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports expected to increase during forecast period
4.1.2. Indonesia plans to diversify arms imports
4.1.3. Aircraft and ships constitute the majority of Indonesian defense imports
4.2. Export Market Dynamics
4.2.1. Indonesia does not possess significant defense export capability
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: Low
5.1.2. Bargaining power of Buyer: Medium
5.1.3. Barrier to entry: Medium
5.1.4. Intensity of rivalry: Low
5.1.5. Threat of Substitution: High
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Defense investment policy conducive to both domestic and foreign investment
6.1.2. New procurement policy to support small and medium enterprises
6.1.3. Indonesia to launch formal offset policy
6.2. Market Entry Route
6.2.1. Budget Process
6.2.2. Procurement Policy & Process
6.2.3. Foreign defense suppliers enter the Indonesian defense market primarily through joint ventures
6.2.4. Strategic partnerships and military collaborations an easier way to access the Indonesian defense market
6.3. Key Challenges
6.3.1. US Sanctions affecting the market
6.3.2. Limited budget for capex deters investment
6.3.3. Lack of defense infrastructure
6.3.4. Corruption impedes the growth of the Indonesian defense industry
7. Competitive Landscape and Strategic Insights
7.1. Competitive landscape Overview
7.2. Key Public Sector Companies
7.2.1. PT Dirgantara Indonesia: overview
7.2.2. PT Dirgantara Indonesia: Major Products and Services
7.2.3. PT Dirgantara Indonesia: recent announcements and strategic initiatives
7.2.4. PT Dirgantara Indonesia: alliances
7.2.5. PT Dirgantara Indonesia: recent contract wins
7.2.6. PAL Indonesia: overview
7.2.7. PAL Indonesia: Major Products
7.2.8. PAL Indonesia: recent announcements and strategic initiatives
7.2.9. PAL Indonesia: Alliances
7.2.10. PAL Indonesia: Recent Contract Wins
7.2.11. PT Pindad: overview
7.2.12. PT Pindad: Major Products
7.2.13. PT Pindad: recent announcements and strategic initiatives
7.2.14. PT Pindad: alliances
7.2.15. PT Pindad: Recent Contract Wins
7.2.16. Dok & Perkapalan: overview
7.2.17. Dok & Perkapalan: Major Products
7.2.18. Dok & Perkapalan: recent announcements and strategic initiatives
7.2.19. Dok & Perkapalan: alliances
7.2.20. Dok & Perkapalan: Recent Contract Wins
7.3. Key Private Sector Companies
7.3.1. PT Dahana: overview
7.3.2. PT Dahana: products
7.3.3. PT Dahana: recent announcements and strategic initiatives
7.3.4. PT Dahana: alliances
7.3.5. PT Dahana: recent contract wins
7.3.6. PT Multiintegra: overview
7.3.7. PT Multiintegra: products
7.3.8. PT Multiintegra: recent announcements and strategic initiatives
7.3.9. PT Multiintegra: recent contract wins
7.3.10. Radar and Communications Systems: overview
7.3.11. Radar and Communications Systems: products
7.3.12. Radar and Communications Systems: recent announcements and strategic initiatives.
7.3.13. Radar and Communications Systems: alliances
7.3.14. PT SOG Indonesia: overview
7.3.15. PT SOG Indonesia: products and services
7.3.16. PT SOG Indonesia: recent announcements and strategic initiatives
7.3.17. PT SOG Indonesia: alliances
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices
8.1.3. Exports of goods and services, current prices
8.1.4. Imports of goods and services, current prices
8.1.5. Gross National disposable income (US$ Bn)
8.1.6. Local Currency Unit per US Dollar
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies (% of GDP)
8.1.9. Government Cash Surplus/Deficit as % of GDP
8.1.10. Goods exports as % of GDP
8.1.11. Goods imports as % of GDP
8.1.12. Service Imports as % of GDP
8.1.13. Service Exports as % of GDP
8.1.14. Foreign Direct Investment (US$ Billion)
8.1.15. Net foreign direct investment as % of GDP
8.1.16. Mining, Manufacturing, Utilities Output (LCU Tn)
9. Appendix
9.1. About
9.2. Disclaimer
List of Tables
Table 1: Indonesian Army Strength
Table 2: Indonesian Navy Strength
Table 3: Indonesian Marine Crops. Strength
Table 4: Indonesian Air Force Strength
Table 5: Indonesian Ongoing Procurement Programs
Table 6: Indonesian Future Procurement Programs
Table 7: Indonesia- Top Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 8: Indonesia - Defense Expenditure (IDR Trillion and US$ Billion), 2014-2023
Table 9: Indonesia - GDP Growth v/s Defense Expenditure As a Percentage of GDP, 2014-2023
Table 10: Indonesian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 11: Indonesian - Defense Capital Expenditure (IDR Trillion and US$ Billion), 2014-2023
Table 12: Indonesian Per Capita Defense Expenditure (US$), 2014-2023
Table 13: Indonesia - Homeland Security Expenditure (IDR Trillion and US$ Billion), 2014-2023
Table 14: Terrorism Index, 2018
Table 15: Benchmarking with Key Markets - 2014-2018 vs 2019-2023
Table 16: Top Indonesian Defense Sectors by Value (US$ Million), 2018-2023
Table 17: Offset Regulations in Indonesia
Table 18: Indonesian Budget Formation Timetable:
Table 19: Top Defense Suppliers in Indonesian Defense Industry - By Value (US$ Million) 2018-2023
Table 20: Competitive Landscape of the Indonesian Defense Industry
Table 21: PT Dirgantara Indonesia-Major Products & Services
Table 22: PT Dirgantara Indonesia - Alliances
Table 23: PT Dirgantara Indonesia - recent contract wins
Table 24: PAL Indonesia - Major Products
Table 25: PAL Indonesia - Alliances
Table 26: PAL Indonesia - recent contract wins
Table 27: PT Pindad - Major Products
Table 28: PT Pindad - Alliances
Table 29: PT Pindad - recent contract wins
Table 30: Dok & Perkapalan-Major Products
Table 31: Dok & Perkapalan-Alliances
Table 32: Dok & Perkapalan- recent contract wins
Table 33: PT Dahana - Major Products
Table 34: PT Dahana - Alliances
Table 35: PT Dahana- recent contract wins
Table 36: PT Multiintegra- Major Products
Table 37: PT Multiintegra - Recent Contract Wins
Table 38: Radar and Communications Systems - Major Products
Table 39: Radar and Communications Systems- Alliances
Table 40: PT SOG Indonesia - Major Products & Services
Table 41: PT SOG Indonesia - Alliances
List of Figures
Figure 1: Indonesian Defense Expenditure (IDR Trillion), 2014-2023
Figure 2: Indonesian Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Indonesian GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
Figure 4:Indonesian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Indonesia - Defense Capital Expenditure (IDR Trillion), 2014-2023
Figure 6: Indonesia - Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Indonesian Per Capita Defense Expenditure (US$), 2014-2023
Figure 8: Indonesian Homeland Security Budget (IDR Trillion), 2014-2023
Figure 9: Indonesian Homeland Security Budget (US$ billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Military Infrastructure and Logistics - Infrastructure Construction Market (US$ Million), 2018-2023
Figure 16: C4ISR-Land Based Security Market Size (US$ Million), 2018-2023
Figure 17: Maritime surveillance and detection Market Size (US$ Million), 2018-2023
Figure 18: Top Indonesia Defense Procurements in Terms of Supplier Relationships
Figure 19: Indonesian Defense imports TIV value (US$ Million), 2013-2017
Figure 20: Indonesian Defense Imports by Region (%), 2013-2017
Figure 21: Indonesian Defense Imports by Category (%), 2013-2017 (TIV values)
Figure 22: Industry Dynamics - Porter’s Five Forces Analysis
Figure 23: Indonesian GDP Per Capita, 2015-2025
Figure 24: Indonesian GDP, Current Prices (In US$ Billions), 2015-2025
Figure 25: Indonesian Exports of goods and services, current prices (LCU Trillion), 2005-2014
Figure 26: Indonesian Imports of goods and services, current prices (LCU Trillion), 2005-2014
Figure 27: Indonesian Gross National Disposable Income (US$ Billion), 2005-2012
Figure 28: Local Currency Unit per US$ - Exchange Rate, 2015-2024
Figure 29: Indonesian Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 30: Indonesian Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 31: Indonesian Government Cash Surplus/Deficit as % of GDP, 2005-2009
Figure 32: Indonesia’s Goods Exports as % of GDP, 2005-2014
Figure 33: Indonesia’s Goods Imports as % of GDP, 2005-2014
Figure 34: Indonesia’s Service Imports as % of GDP, 2005-2014
Figure 35: Indonesia’s Service Exports as % of GDP, 2005-2014
Figure 36: Indonesian Foreign Direct Investment (US$ Billion), 2005-2014
Figure 37: Indonesian Net foreign direct investment as % of GDP, 2005-2014
Figure 38: Indonesian Mining, Manufacturing, Utilities Output (LCU Tn), 2005-2014
