Indonesia welcomes foreign investors in defense industry

Indonesia has widely opened opportunities for foreign investors in setting up cooperation with domestic producers to produce defense equipment under transfer of technology scheme, Indonesian Defense Minister Purnomo Yusgiantoro said here on Tuesday. With such a scheme, the government puts great expectations to see advanced military equipment can be produced by local producers after receiving the transfer of technology from their foreign partners, would eventually boost up industry in defense sector. "We have allocated 15 billion US dollars to produce armaments and military equipment within the next five years," Yusgiantoro said in a session to receive representatives of global consultant firm, Oxford Business Group (OBG) here. He also said that transfer of technology scheme is also applied in the procurement of military armament and equipment from foreign countries. "What is matter to us is that every military agreement signed with foreign countries must be assured with sustainable transfer of technology scheme," the minister was quoted as saying by the Antara news agency. Citing an example, the minister said that procurement on three submarines from South Korea was based on the scheme. "The first submersibles would be produced in South Korea, The second one to be produced under joint venture scheme and for the third one we expect the production can be conducted in Indonesian dockyard," the minister said.