The 1945 Constitution has enshrined “shall protect the whole Indonesian people and the entire homeland of Indonesia” as one of the nation’s key objectives. This mandate is primarily implemented by building and deploying a robust defense capability.
Indonesia has faced challenges in the form of embargoes in past decades, which hindered its ability to safeguard its people and uphold its territorial integrity. As a result, the country has recognized the importance of self-reliance in defense acquisitions and has taken steps to promote and establish such capabilities.
The Committee of Defence Industries Policies (Komite Kebijakan Industri Pertahanan/KKIP) was established in 2010 through Presidential Regulation number 42 year 2010. Initially, the KKIP operated under the coodination of the Minister od Defense, serving as its chief.
The committee was tasked with formulating strategic policies on defense industries, coordinating the policies’ implementation, coordinating international cooperation, and supervising as well as evaluating the policies’ implementation.
Two years later, on October 2012, a defense industries bill passed to become law number 16 year 2012. This expanded the authority of the KKIP, with the President assuming the role of Chairman of the KKIP (Ketua KKIP), while the Minister of Defense was designated as the Acting Chairman of KKIP (Ketua Harian KKIP).
KKIP serves as the government’s representative agency for coordinating national policies on defense industries, including planning, formulating, implementing, controlling, synchronizing, and evaluating defense industries.
In addition to the aforementioned task, KKIP also composes a grand planning of defense industries, formulates financing policies, and establishes mechanisms for marketing and procurement.
Previously, KKIP was authorized to make decisions upon the acquisition of Defence and Security Provisions (Alat Peralatan Pertahanan dan Keamanan/Alpalhankam). However, the 2022 Omnibus Law has revoked the authority.
Since the agency is the representation of the government, KKIP has also been involved in various defense industries-related policies assigned to other governmental bodies.
KKIP itself is a big committee that comprises 11 ministers/chairmen of agencies: (1) Minister of Defense; (2) Minister of State Enterprises; (3) Minister of Industry; (4) Minister of Finance; (5) Minister of Foreign Affairs; (6) Minister of Education, Culture, Research, and Technology; (7) Minister of Communications and Information; (8) Head of National Development Agency; (9) Head of National Research and Innovation Agency; (10) Commander of the National Armed Forces; and (11) Chief of National Police.
The committee is supported by a Secretariat. The presidential regulation of number 59 year 2013 introduces the KKIP’s Executive Team and Expert Team to assist the Acting Chairman in daily duties.
The Executive Team consists of 5 divisions – planning; transfer of technology and offset; research, development, engineering, and standardization; collaboration and marketing; financing and funding; and law and regulation.
Currently, there are 8 members of the Expert Team – so called Expert Staff: (1) planning; (2) offset collaboration; (3) research, development, engineering, and standardization; (4) industrial collaboration; (5) funding and finance; (6) law and regulation; (7) marine defense; and (8) cyber defense.
KKIP’s mission is to foster the development of an advanced, capable, and competitive national defence industry. By doing so, Indonesia aims to incrementally enhance its self-reliance in the procurement of defense and security capabilities.