PT Pindad, Indonesia’s flagship defense manufacturer, has signed a new partnership agreement with German defense giant Rheinmetall to co-develop next-generation ammunition technologies. The collaboration is a key milestone in Indonesia’s strategy to strengthen its indigenous defense production capacity while leveraging the expertise of established international defense firms.
The agreement with Rheinmetall comes amid a broader effort by Indonesia to deepen global defense cooperation. Earlier in 2025, Jakarta concluded a major defense deal with Dassault Aviation for Rafale multirole fighter jets, a step that underscores the government’s intent to modernize the Indonesian National Armed Forces (TNI) with advanced systems sourced through strategic partnerships.
Over the past few years, PT Pindad has broadened its collaborative network through projects with FNSS of Turkey for the Kaplan medium tank, and partnerships with South Korean and Indian defense firms to enhance ammunition production and vehicle development programs. These ventures are designed to facilitate technology transfer, ensuring Indonesia can independently sustain key elements of its defense manufacturing base.
In the maritime sector, PT PAL Indonesia has also expanded cooperation with Dutch and Japanese shipbuilders, focusing on new-generation naval vessels and submarines. Collectively, these programs reflect Indonesia’s Defense Industry Policy, which seeks to balance technological self-sufficiency with global defense integration, positioning the country as a growing player in the regional defense ecosystem.
