The Urgency of Establishing the National Defense Industry Supervisory Agency as the Grand Controller After Job Creation Act Number 11 of 2020 for the Production and Sale of Defense Equipment to Support the State Defense Strategy

Abstract

The expanding role of the private sector in Indonesia in producing main weapon systems, in order to accelerate the mastery of technology and independence of the national defense industry (NDI) in the Job Creation Act. hasn’t been accompanied by a mechanism for monitoring the production and sales of defense equipment, though this is something crucial related to the national defense-strategy. Although licensing for the production of defense equipment is held by the Ministry of Defense, there are no regulations or institutions/agencies that oversee this in an integrated manner. Thus, this study aims to determine the urgency of establishing the NDI-Supervisory Agency which can be a grand controller as well as an Integrated-Supervisory for the production and sales of the NDI. This study uses a qualitative method by collecting data through documentation studies which were analyzed descriptively. The result of this research is that there is no integrated regulation or institution that regulates the mechanism for controlling the production and marketing of weapon products independently, supervision is only on by the DPR-RI for the implementation of policies. Thus, there are two recommendations from this research, firstly expanding the role of the Defense Industry Policy Committee to oversee the production and sales flow of defense equipment in Indonesia, or secondly establishing an independent supervisory agency/body with an integrated supervisory base on the production and sales of the defense industry that has been granted a permit by the Ministry of Defense to support the independence of the NDI in accordance with the National defense strategy.