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Defense SOEs forge closer ties with UAE’s fringe bloc

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Jakarta. Two Indonesian state-owned companies have struck a deal with UAE-based military contractor Edge Group to explore cooperation in explosives manufacturing and shipbuilding, paving the way for the Southeast Asian nation’s military self-reliance.

Explosives producer Dahana on Saturday signed a memorandum of understanding (MoU) with Edge’s ammunition maker subsidiary Lahab to seek cooperation in manufacturing and several types of explosives. The deal was signed during the India Defence Expo and Forum 2022, a three-day international exhibition to be held at JIExpo Kemayoran in Jakarta on November 5.

The deal will pave the way for the establishment of a TNT factory joint venture in the Dahana Energy Materials Centre (EMC) area in Subang, West Java, the companies said in a statement.

Lahab and Dahan are also investigating the possibility of collaboration in propellant and high-explosive RDX manufacturing. Currently, Indonesia is still importing propellant and RDX, making the country vulnerable to international embargoes.

Arafat Al Yafei, Chief Executive Officer (CEO) of Lahab, said the deal will allow the two companies to combine their respective capabilities and grow together, and provide better services and solutions to their respective “customers in the defence and commercial sectors, while minimising potential disruption.”

Dahana’s director of technology and development, Suhendra Yusuf RPN, said the deal was a follow-up to an earlier agreement last year between Edge and Dahana’s parent company, Defend ID, a state-owned military-industrial holding company.

“As part of Defend ID, which aims to achieve the independence of the defense and security equipment tool Alpalhankam and become a player in the global defense industry supply chain, Dahana seeks to establish a strategic partnership with Lahab and the wider Edge Group. We hope for this understanding The memorandum can be followed up and implemented to enhance the capabilities and capacity of each company,” Suhendra said.

Earlier on Thursday, shipbuilder PAL Indonesia signed a memorandum of understanding with Edge’s subsidiary Abu Dhabi Shipbuilding (ADSB) to build a range of interceptors, landing craft and hard-shell inflatables for the needs of the Indonesian Navy and Coast Guard. Boat (RHIB).

ADSB CEO David Massey said the deal with PAL Indonesia will strengthen UAE investments in Indonesia.

“We are delighted to be partnering with PT PAL and we look forward to jointly pursuing opportunities that contribute to our respective business and national goals,” Massey said.

Azharuddin Djenod, chief executive of PAL Indonesia, said he was pleased with the deal and hoped it would lead to a stronger Indonesian navy and defense industry.

“This collaboration will strengthen PT PAL’s role in mastering Indonesian naval technology,” Kaharuddin said.

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