EVALUASI DAMPAK PENANAMAN MODAL ASING TERHADAP INDUSTRI PERTAHANAN INDONESIA

Aris Sarjito

Abstract


The defense sector plays a vital role in safeguarding the sovereignty and security of any nation. In recent years, the Indonesian government has opened up the defense industry to foreign investment to enhance industry competitiveness and technology transfer.The aim of this study is to identify the types and sources of foreign investment in Indonesia's defense industry, assess the extent to which foreign companies are involved in the transfer of technology and know-how to Indonesian firms, evaluate the impact of foreign investment on the competitiveness of Indonesia's defense industry, and identify any potential risks associated with foreign investment in the defense industry. This qualitative study employs a secondary data collection method to identify the types and sources of foreign investment in Indonesia's defense industry, assess the extent of technology transfer to Indonesian firms, evaluate the impact of foreign investment on industry competitiveness, and identify potential risks associated with foreign investment in the defense sector.The research findings indicate that foreign investment has increased the competitiveness of Indonesia's defense industry and enhanced technology transfer. The presence of foreign companies has also led to modernization and up-gradation of the defense sector. However, the study also highlights the potential risks associated with foreign investment, such as intellectual property theft and sensitive technology transfer.

Keywords: defense industry, foreign investment, industry competitiveness, potential risks, technology transfer


Full Text:

PDF

References


Achmad, T. (2018). Understanding technology transfer in Indonesian companies. Asian Journal of Technology Management, 11(1), 15-31.

Asian Development Bank. (2018). Enhancing the Defense Industry in Indonesia. Retrieved from https://www.adb.org/projects/51308-001/main.

Assefa, B., Debebe, Z., & Yisma, E. (2019). The impact of foreign direct investment on defense industry development: the case of Ethiopia. Journal of Defense Resources Management, 10(2), 51-61.

Balbina, I. (2017). Analysis of Foreign Investment Development Impact on Defense Industry Development in Indonesia. Procedia - Social and Behavioral Sciences, 224, 22-28.

Bisnis Indonesia. (2018). Indonesia targets China and Russia to Invest in defense industry. Retrieved from https://en.bisnis.com/read/20180103/77/722094/indonesia-targets-china-and-russia-to-invest-in-defense-industry.

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative research in psychology, 3(2), 77-101.

Burger, M., & Jochem, E. (2018). The Impact of Foreign Direct Investment on Host Countries: An analysis with a Special Focus on the Indonesian Situation. Journal of Asia Pacific Economy, 23(6), 862-874.

Chandra, P., Sankaran, S., & Subramanian, K. (2020). The strategic impact of foreign direct investment in the Indian defense industry. Strategic Analysis, 44(2), 129-142.

Creswell, J. W. (2013). Qualitative inquiry and research design: Choosing among five approaches. Sage publications.

Denzin, N. K., & Lincoln, Y. S. (2011). The SAGE Handbook of qualitative research. Sage.

Fazlagic, M. (2015). The impact of foreign direct investment on economic growth. Business and Management Review, 5(2), 45-48.

Frost & Sullivan. (2020). A Comprehensive Study of the Indonesian Defense Industry. Retrieved from https://www.frost.com/frost-perspectives/comprehensive-study-indonesian-defense-industry/.

Giri, A. K., & Pandey, B. D. (2017). An Assessment of Foreign Direct Investment in the Defense Industry: Evidence from India. Economic Modelling, 63, 206-215.

Hufom, M. (2019). US financial assistance for Indonesia's defence industry. Jane's Defence Weekly, 56(32), 30-31. doi:10.1016/S0265-3818(19)30606-X

Huq, Z. (2018). Role of domestic workforce in technology transfer: Evidence from Bangladesh. Journal of Asian Business and Economic Studies, 25(2), 161-176.

Jiang, Y. (2017). Technology Spillovers from Foreign Direct Investment in Indonesian Defense Industries. Journal of Southeast Asian Economies, 34(2), 154-171.

Korea Herald. (2020). South Korea, Indonesia sign tech transfer agreement for defense industrial cooperation. Retrieved from https://en.yna.co.kr/view/AEN20201126006600325.

Kurniawan, T., & Kadir, A. (2019). Impact of foreign direct investment on defense industry: Evidence from Indonesia. Journal of Business Research, 101, 671-678. https://doi.org/10.1016/j.jbusres.2018.12.054

Lee, J., & Chang, Y. (2017). The impact of foreign direct investment on military spending: Evidence from OECD countries. Oxford Economic Papers, 69(2), 359-379.

Lim, J. (2017). Indonesia shows interest in Russian defense technology. Nikkei Asian Review. Retrieved from https://asia.nikkei.com/Politics-Economy/International-Relations/Indonesia-shows-interest-in-Russian-defense-technology.

Liu, Y., Wu, D., & Zhang, H. (2019). The impact of foreign direct investment on the output and employment of Indonesia's defense industry. Sustainability, 11(9), 2689.

Ministry of Defense. (2014). Indonesian National Defense Industry Development Master Plan. Jakarta.

Mochammad Akhir Majid & Tugiman. (2019). Evaluation of Foreign Investment and Technology Transfer on the Development of Weapons Defense Industry in Indonesia. Review of Integrative Business and Economics Research, 8(3), 10-21.

Ongkowijoyo, C. (2019). The Indonesian Defense Industrial Policy, 2010–2019: Confusion and Paralysis. Asian Journal of Political Science, 28(4), 446-462.

PT Pindad and SSB. (2018, October 9). Indonesia, Turkey Ink MoU on Defense Industry Cooperation. Retrieved from https://jakartaglobe.id/business/indonesia-turkey-ink-mou-on-defense-industry-cooperation.

Siregar, N. S. (2018). Foreign direct investment and knowledge transfer in Indonesia's defense industry. Journal of Defense Management, 8(2), 25-33. https://doi.org/10.4172/2167-0374.1000222

Siswoyo, E. (2021). Foreign investment and defense industry capability in Indonesia. Journal of Politics & Society, 32(1), 45-56.

Tandelilin, E., & Siddiqui, K. J. (2019). Foreign investment in Indonesian defense industry: Analysis of opportunities and challenges. Journal of Defense Management, 9(1), 44-57. https://doi.org/10.4172/2167-0374.1000222

The Jakarta Post. (2013, October 10). Airbus, Indonesian firm team up to produce military aircraft. Retrieved from https://www.thejakartapost.com/news/2013/10/10/airbus-indonesian-firm-team-up-produce-military-aircraft.html.

United Nations Office on Drugs and Crime. (2015). The Globalization of Crime: A Transnational Organized Crime Threat Assessment. Retrieved from https://www.unodc.org/documents/data-and-analysis/tocta/TOCTA_Report_2015_final.pdf.

Vadlamani, R. (2020). Foreign direct investment and defense industry: A review of the literature. Defence and Peace Economics, 31(8), 842-854.

World Bank. (2020). Indonesia - foreign investment. Retrieved from https://data.worldbank.org/country/indonesia.




DOI: https://doi.org/10.52061/ebi.v5i2.135

Refbacks

  • There are currently no refbacks.



 

Alamat Sekretariat / Redaksi

 

Lembaga Penelitian dan Pengabdian kepada Masyarakat (LPPM) Universitas Catur Insan Cendekia (UCIC)
Fakultas Ekonmi Dan Bisnis (FEB) UCIC
Jl. Kesambi 202 Kota Cirebon 45133Jawa Barat Indonesia
Telp.(0231) 220 250 / 220 260 / 200 418
Fax.(0231) 242 112, E-mail:lppm@cic.ac.id
Website: http://jurnaldigit.org