The Czech Republic is looking to Indonesia as an opportunity to expand its defense industry through potential contracts as the Southeast Asian nation undergoes a massive modernization plan. The two countries are looking to increase cooperation in defense operations, with the Czech Republic already offering technical assistance to Indonesia’s ongoing efforts. The potential for a business relationship is set to bring about a win-win situation for both sides. In this article, we will explore the details of the Czech Republic’s eyes on Indonesia’s defense modernization and what it could mean for the region.
Czech Republic Offers Modernization Assistance to Indonesia’s Defense Arsenal
Indonesia is exploring modernization and expansion of its defense arsenal. The country has the ambitious target of modernizing its military equipment with a budget of over $125 billion. The Czech Republic, a defense and security industry heavyweight, is now keen to help Indonesia achieve its goals. During a bilateral talk held at the Bogor Palace, Czech Prime Minister Petr Fiala and Indonesian President Joko “Jokowi” Widodo discussed the possibilities of defense cooperation. Fiala remarked that Indonesia is a strong partner in security and defense, and expressed appreciation for the fact that Czech defense companies have been delivering products to Indonesia, such as the L 410 NG aircraft. He also expressed an interest in modernizing the Indonesian army.
Fiala’s statement reiterates the historical and sound relations between the two countries, which have intensified over the years. The Czech Republic has had successful joint ventures and technical cooperation with Indonesia, and Fiala is optimistic about future collaboration in security, defense, and cybersecurity.
On the same day, the Czech Chamber of Commerce met with its Indonesian counterpart, Kadin, at a business forum in Jakarta. The two business representative bodies signed a memorandum of understanding (MoU) aimed at promoting trade, particularly by facilitating the establishment of joint ventures. According to Kadin, Indonesia-Czech trade reached $254.9 million in 2022, representing an 11-percent increase from the previous year.
Industrial technological holding Czechoslovak Group and defense firm Republikorp also inked a strategic cooperation agreement on the joint production of the ADS-400 intermediate air defense missile complex. This equipment is equipped with missiles, launchers, and radars to protect an area from fifth-generation fighters, helicopters, unmanned aerial vehicles (UAVs), and cruise missiles. These advanced defense technologies are in line with Indonesia’s defense interests and goals.
Speaking at the Indonesia-Czech Business Forum, Shinta Kamdani, Kadin’s coordinating vice chairwoman for investment, expressed that the Czech Republic’s advanced defense industry is well placed to assist Indonesia’s national interest in modernizing and expanding its defense arsenal. Similarly, the president of the Czech Chamber of Commerce, Vladimír Dlouhý, stated that the country has a substantial amount to offer Indonesia, with products ranging from revolvers and armaments from firearm producer Česká Zbrojovka, partnerships with armored vehicle producer Excalibur Army, ammunition producer STV and Omnipol, which can provide different types of aircraft and other military equipment.
The significant progress that the two countries have made so far is a testament to the robust friendship, trust, and cooperation that they have developed over the years. As the world becomes more complex and uncertain, international cooperation such as this is essential in promoting peace and stability, and safeguarding national interests. Indonesia and the Czech Republic have much in common and much to offer each other. It is hoped that the ongoing dialogue between the two countries continues to deepen, paving the way for stronger collaboration in the future.
