REPUBLIKA.CO.ID, JAKARTA -- Indonesian state-owned arms manufacturing firm PT Pindad has invited a number of countries to cooperate in the production of equipment for the country's main weaponry system.

"The development of cooperation with Germany, Turkey and Belgium will commence this year, in addition to transfer deals," the new president director of the company, Silmy Karim, said before attending a meeting between the working committee on state capital participation with Commission XI of the House of Representatives (DPR) here on Monday.

He affirmed that Pindad would cooperate with Rheinmetall of Germany to produce tank ammunition, with FNSS of Turkey to develop medium-sized tanks, and also with Cockerill Maintenance & Ingenierie SA Defence (CMI) to produce 90mm and 105mm caliber turrets.

"The cooperation is being established with countries that are known in the world for their expertise in tank and arms technologies. These ties will be flexible and can also be in the form of cooperation in products or operations, or a joint company," he pointed out.

Karim, who was inaugurated as the company's president director on December 22, 2014, stated that the cooperation was also aimed at meeting domestic demand, besides technology transfer.

"Many countries offered to establish cooperation, but we chose these countries," he remarked, adding that Pindad has sought cooperation with other countries, as well, because of its limited resources.

Moreover, to produce equipment for Indonesia's main weapon system in 2015, the company needs some Rp4.7 trillion.

"It is believed that a funding of Rp700 billion will be allocated for the venture in the 2015 national budget, while some Rp100 will be from internal coffers, and the rest, from partners," he affirmed.

Furthermore, Commission XI of the parliament and Pindad are discussing the government's plan to inject Rp700 billion in 2015 to the company to improve its production lines (Rp593.5 billion) and the development of its industrial product business to support the government's maritime axis program (Rp66.5 billion).

Rp25 billion meanwhile will be allocated to develop production and facilities for learning centers, while another Rp15 billion will be provided for human resource development.

If the government capital participation is disbursed, Pindad will set a revenue target of Rp4.035 trillion for 2019, up from Rp2.1 trillion projected for 2015, he noted.

The company's net profit in 2019 is estimated to be Rp200.7 billion, which is higher than the estimated Rp85.3 trillion for 2015.

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