Defense Spending Forecast – Indonesia

A quantitative analysis of Indonesia
Published: August 1, 2016

Indonesia is forecast to grow its defense spending and defense procurement. The data used in this report is sourced from Avascent’s Global Platforms and Systems tool, which identifies and forecasts defense procurement in the U.S. and abroad.

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  • Regional security concerns drive naval modernization, with a heavy focus on littoral operations and undersea warfare
  • Indonesia continues to expand its relationship with non-traditional defense suppliers such as South Korea
  • 35% offset requirement aimed at growing domestic industrial base and spurring new foreign partnerships
  • Government reforms of key procurement laws will help grow small and medium domestic defense suppliers, creating an established local supply chain
  • As inflation slows and economic expansion continues, the MoDexpects to significantly grow defense expenditure to position itself as a larger power in S.E. Asia

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