How can defense industries balance innovation with cost-effectiveness and budget constraints

Tri Guntoro Sukarno Putro; I Nengah Putra; Edy Sulistyadi; Tyan Hidayatus Sholihah

doi:10.55227/ijhess.v4i5.1491

Authors

Tri Guntoro Sukarno Putro Universitas Pertahanan Republik Indonesia, Indonesia
I Nengah Putra Universitas Pertahanan Republik Indonesia, Indonesia
Edy Sulistyadi Universitas Pertahanan Republik Indonesia, Indonesia
Tyan Hidayatus Sholihah Universitas Pertahanan Republik Indonesia, Indonesia

DOI:

https://doi.org/10.55227/ijhess.v4i5.1491

Abstract

The defense industry is required to always innovate in order to face changes in the way of fighting and maintaining national defense. Various schemes can be implemented to realize innovation in the defense industry, such as research in educational institutions, joint production and optimization in potential private industries, but the defense industry facing the problem that always accompanies the development of defense technology, namely the lack of budget, the research budget in Indonesia alone is only around 0.8% of GDP. This figure does not cover research activities in other sectors. How the defense industry overcomes this challenge, of course it must have the best strategy to optimize the available budget, the government can take a crucial role in this matter by making its own regulations if foreign suppliers want to market their products in Indonesia, regulations can take the form of an obligation to provide production cooperation or even the obligation to provide training or technology to Indonesia, another scheme can also be pursued by playing with potential industries that already have basic technology to be developed i nto military technology so that the main defense industry is not too burdened with complex development activities and starts from zero

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