BTN Extends Rp1.5 Trillion Loan to Accelerate Pindad's Maung MV3 and Ammunition Production

PT Bank Tabungan Negara (Persero) Tbk (BTN) has partnered with PT Pindad to accelerate the state-owned enterprise’s performance, specifically in producing government vehicles such as the Maung MV3 and military ammunition. This support is marked by the signing of a Rp1.5 trillion Loan Facility Cooperation Agreement, underscoring BTN’s commitment to strengthening domestic defence self-reliance and advancing key national programs.

BTN Managing Director Nixon LP Napitupulu stated that amid rising global geopolitical uncertainties, bolstering the domestic defence industry is a strategic necessity for safeguarding national sovereignty and resilience. The government has designated defence as a priority sector, reflected in Indonesia’s 2026 defence budget exceeding Rp180 trillion, making it one of the largest allocations in this year’s state budget.

“We hope this BTN support will enhance Pindad’s production capacity, not only strengthening national defence but also generating a multiplier effect across steel, metal, electronics, manufacturing, and logistics industries while creating thousands of jobs,” Nixon said in a statement on Saturday, 30 May 2026.

Pindad plays a central role in this ecosystem through the production of tactical vehicles, armoured combat vehicles, ammunition, weapons, and specialised equipment used by the military (TNI) and police (Polri).

To support the smooth implementation of Pindad’s strategic projects, BTN has provided a Rp1.5 trillion Corporate Loan Facility, comprising a Rp12.5 billion Cash Loan or Contractor’s Working Capital (KMK) facility and non-cash facilities including Bank Guarantees, SKBDN, and Letters of Credit with a Trust Receipt sub-limit of Rp1.375 trillion.

Nixon explained that this financing support is provided to ensure the smooth execution of Pindad’s strategic projects sourced from various ministries and state institutions, whether funded by the state budget or through domestic and foreign loan schemes.

Initially, the funding facility will focus on supporting Pindad’s key national programs, including the production of the Maung MV3 – a national operational vehicle now used by government officials – as well as various types of ammunition to bolster national defence readiness and water cannons for public security and order.