Supply and Demand: Indonesia looks to ramp up Defence Capabilities at BIAS 2024
Operating under the motto “Where Aerospace Excellence Meets Defence Innovation,” Bali International Air Show (BIAS 2024), which took place at the Ngurah Rai International Airport at Denpasar, Bali, from 18-21 September was aimed at: showcasing the capabilities, experience, sophistication and ambition for the nation’s indigenous industries; highlighting the political commitment to financing, enabling and empowering Indonesia’s contributions to international order; reinforcing Indonesia’s leading regional and global role; and directing a spotlight to the opportunities for international collaboration, joint venture and technology development.
Almost 100 companies were exhibiting at BIAS 2024, among them the household names of the defence worlds, such as Boeing, MBDA, and Thales, as well as a host of less well-known regional and national companies.
Visitors, exhibitors, and observers might have expected to see an exhibition that, in its first iteration, concentrated on developments in the civil aviation domain. Indeed, given the launch of a national sustainable aviation fuel initiative and the imminent promotion of Indonesia to the world’s fourth largest aviation market by 2027 (see previous story on the background to the show’s opening here), such an assumption would appear to be justified.
However, the EDR On-Line team on site at Ngurah Rai unearthed a number of interesting developments in the defence field that give the lie to a purely civil aviation focus, while some aircraft of the latest generation were present at the static exhibition, such as an Royal Australian Air Force F-35.
Perhaps the overriding issue is also the one that projects the greatest aura of uncertainty over defence matters in the world’s largest archipelago. Although relatively small at approximately US$ 8.8 billion in 2023, the defence budget is the second largest in the Asia Pacific region (after Singapore) and is set to rise to approximately US$ 9.7 billion by 2028, according to data/analytics specialist GlobalData. That growth is driven in large part by far-reaching defence modernization plans that will strengthen Indonesia’s position as a major player on the Southeast Asian geopolitical stage. Nonetheless, the budget equates to a mere 0.7% of GDP, which highlights some of the budgetary challenges the government faces.
Unsurprisingly, perhaps, several of those modernization programmes centre on enhancing the capabilities of the TNI-AU (Tentara Nasional Indonesia Angkatan Udara – Indonesian Air Force), some of its combat aircraft such as an F-16 Fighting Falcon, a Su-30 and an EMB-314 Super Tucano were visible at the static display. With the acquisition of the Dassault Aviation Rafale at the centre of current plans. Dassault has established a major regional foothold in an increasingly important regional market with this sale, albeit the only signed contract at the time of writing is for just six F3R Standard aircraft, with options on a further 36 as yet unexercised.
Deliveries of the first six aircraft are due for late 2025/early 2026, EDR On-Line understands, with an end date of 2029 being suggested for completion. Much remains uncertain as the president-elect, Prabowo Subianto (the former Defence Minister) approaches his inauguration on 20 October. He faces budget challenges from multiple quarters and will struggle to balance the defence books, despite his interest and commitment. Nonetheless, Dassault Aviation’s significant presence at BIAS 2024 attracted considerable support from Rafale programme partners, including Thales and MBDA, whose stands were adjacent to that of the airframer.
MBDA’s focus is obvious. The development of the weapons package for the Indonesian Rafales is ongoing and, although likely to centre on a mix of MICA and Meteor missiles, faces challenging timescales if a projected in-service date of 2028 is to be achieved. But the multinational weapons specialist’s commercial antenna is tuned to additional market opportunities. Military Advisor, François Moussez, told EDR On-Line that the company “is exploring the air defence market in Indonesia, which already has MICA in service”.
Rafale is not the only aircraft programme of note, however. A year ago, Prabowo (as Defence Minister) signed a pledge in St. Louis to acquire up to 36 F-15IND in line with a two-year-old Foreign Military Sales (FMS) authorization. Given the current paucity of budget resources, the potential for that acquisition to turn into an actual procurement programme in the near future must be regarded as suspect. Boeing, however, remains bullish on the prospect, and EDR On-Line understands the company will be showcasing an F-15EX simulator at the Indo Defense Expo in Jakarta next month.
Away from large combat aircraft, Indonesian industry is working hard at enhancing TNI-AU’s capabilities through indigenous R&D. LEN, a holding of DefenceID, was highlighting its DID 3.11, a nationally developed and produced UAV (in collaboration with Thales and Airbus) with a payload of 80 kg, a speed of up to 180 km/h, a range of 1,500 km and an endurance of up to 12 hours. “This is a joint development with the MoD and we are already at TRL (technology readiness level) 7 and we are looking at a manufacturing rate of up to four per month,” said VP Strategic Marketing, Dewanda Dwi Putera. The sensor agnostic air vehicle is aimed at both ISR and strike roles and a Letter of Intent was signed last year, according to the company, though an actual order has yet to be confirmed.
Other major international companies are diligently assessing opportunities in Indonesia and the wider region. Pablo Rivera, Military Aircraft Sales Manager for Airbus Defence & Space, told EDR On-Line that the company is seeing increased interest in anti-submarine warfare (ASW) platforms as a result of the increasing perception of potential submarine threats in the Indian and Pacific Oceans. Equally important – with potential impact for the company’s A400M – is a growing emphasis on the humanitarian assistance and disaster relief (HA/DR) mission, now becoming so pronounced that there are suggestions of an ASEAN-wide approach to the development of joint assets.
Textron was another company addressing multiple market opportunities at BIAS 2024. With 90 Caravans already in service in Indonesia alone, the company’s reputation in the special missions aircraft market should stand it in good stead as Indonesia continues to develop a wide spectrum of capabilities for the armed forces and for the TNI-AU in particular.
Indonesia’s National Research and Innovation Agency (Badan Riset dan Inovasi Nasional – BRIN) had a major presence at BIAS 2024 – as befits an agency of its size and prominence. Responsible directly to the Indonesian President, rather than a ministry or governmental department, BRIN boasts over 14,000 personnel directly involved in science and technology programmes ranging from aircraft component testing to UAV systems integration. It acts as a focal point for the continual improvement of the Republic’s industrial ecosystem across a wide range of disciplines, including defence and aerospace.
The health of any new exhibition – and, indeed, that of the underlying market – can be seen in the presence of new companies – those ‘beyond the usual suspects’. One such at BIAS 2024 was APPI-Technology (Active Protection Personal Instrument), an innovative French company and self-described startup (though it has been around since 2017) that offers a unique communications capability, enabling hands-free communication and ‘conference-mode’ walkie-talkie-like connectivity for groups that operate in conflicted environments. Firefighters, EOD operators, CBRN reconnaissance teams or Special Forces, among others, can enjoy wireless, flexible, hands-free group communications that overcome some of the more serious constraints they currently face.
Indonesia is an important and vibrant market, with a sophisticated industrial capability and a thirst for international collaboration. The government has significant challenges to overcome – not the least of which is the question of an adequate defence budget – but the signs extant at the air show reveal there is a commitment to confront and address those challenges.
BIAS 2024 was not merely the launch of a new show: it marked the inauguration of a show that will almost immediately become a larger and more varied event – under the title of Indonesia International Air Show – that will take place at a rolling series of venues on the nation’s islands on a biannual basis from next year. The commitment to that ideal – and the excitement it is generating among local and international bodies – was quite palpable.
A brief journey through BIAS 2024 revealed these – and other – items of interest, several of which EDR On-Line will be following up on in coming weeks. Watch this space – it will be worth it!
Photos by J. Roukoz and Indonesia MoD
