Indonesia Almost Sold Its Defense Firms to Foreign Parties: Prabowo
Indonesian President Prabowo Subianto claims he intervened to prevent the sale of state-owned defense firms like Pindad and PT PAL to foreign entities. He emphasized that these companies are now recovering and securing international contracts, including a deal with Saudi Arabia.
Why it matters
This highlights Indonesia's shift toward protectionism in its defense sector and its ambition to become a regional arms manufacturer.
July 10, 2026 | 8:01 pm SHARE URL berhasil di salin. President Prabowo Subianto gestures as he greets his Belarusian counterpart Alexandr Lukashenko at the Merdeka Palace in Jakarta on July 2, 2026. (Antara Photo/Bayu Pratama S) Jakarta. President Prabowo Subianto has claimed to have stopped Indonesia from handing over its defense firms to unnamed "foreign parties".
Indonesia's defense industry was once on the verge of being acquired by foreign entities, according to Prabowo in West Lombok on Friday. The state-run arms provider Pindad, warship maker PT PAL, and the aerospace firm Dirgantara Indonesia (PTDI) were up for grabs. Prabowo - who has always been a vocal critic of foreign interference - did not mention a specific country, nor did he offer clarity on the timeline.
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