Indonesia and the entire region of Southeast Asia can become another interesting market for the products of Czech defense industry companies

Indonesia and the entire region of Southeast Asia can become another interesting market for the products of Czech defense industry companies
Author: Excalibur Army|Caption: RM 70 Vampire
26 / 07 / 2021, 10:00

A few weeks ago, a generous long-term plan to modernize the Indonesian Army was announced. Indonesia wants to modernize in all directions, and the plan envisages a massive investment of $ 125 billion in individual military sectors by the middle of the fourth decade. This plan is both an indicator of Indonesia's specific ambitions in the region and a growing concern for national security.

Some planned and completed acquisitions indicate that Jakarta is increasingly looking for European strategic purchases. According to various sources, Indonesia is close to, for example, the purchase of 36 French Dassault Rafale aircraft. If this purchase were made, Jakarta would become the largest foreign operator of the mentioned French fighters. An agreement on wider cooperation in the field of military supplies may also be at stake, as Indonesia has also shown interest in Scorpène-class submarines.

See also: New DITA self-propelled wheeled howitzer pushes the possibilities of modern combat further

Jakarta's interest in wider long-term collaborations, resp. joint production, then it opens up new and considerable opportunities for European companies, which of course also applies to Czech companies in the defense industry, which mainly concern ground technology, but not only it. And we don't just have to talk about Indonesia, but the whole of Southeast Asia.

Indonesia has recently had relatively lively ties to Czech companies in the field of military supplies. In February this year, Excalibur Army signed a major contract with the Indonesian company PT REPUBLIK DEFENSINDO for an agreement on the joint production of RM-70 Vampire rocket launchers in Indonesia. The agreement is the result of previous cooperation, when the first battery of RM-70 Vampire rocket launchers was delivered to Jakarta in 2016.

In addition to rocket launchers, Excalibur Army also supplied Indonesia with amphibious bridge vehicles, another important item being the Pandur II 8x8 armored vehicles. The contract for the supply of 23 pieces of Pandur armored vehicles was signed in 2019. The already mentioned company Excalibur Army is then able to respond to other potential demand from Indonesia, respectively. States of Southeast Asia and can also offer modern engineering equipment - bridge cars AM-50 EX and AM-70 EX on TATRA chassis.

However, the object of commercial interest may not only be Indonesia, but also the Philippines, whose army is one of the worst equipped in the region. Although the Philippines is undergoing a staged process of modernizing its armed forces, its pace is insufficient, the economic situation in the Philippines is unhappy and key strategic contracts have either been delayed or stopped.

See also: Czech companies to supply Pandur II armored fighting vehicles to Indonesia

From the point of view of Czech companies interested in entering the Philippine market, the Defense Cooperation Agreement, which was signed in 2017, is important in terms of potential military-technical cooperation. The Czech footprint in the Philippines is already visible now - Pandur II Sabrah wheeled vehicles will be supplied by Excalibur Army and Tatra Defense Vehicle.

And it doesn't have to stay that way for the future. The Philippines and Indonesia are not the only countries that offer the potential for Czech defense companies to enter local markets. The positive experience with Indonesia and the Philippines opens up further opportunities for Czech defense industry companies to enter into new contracts or deepen existing cooperation in the field of military-technical cooperation.

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