Indonesian Political, Business & Finance News

Is the BrahMos and Astra Missile Procurement Policy Appropriate?

| Source: TEMPO_ID Translated from Indonesian | Defence

President Prabowo Subianto signed a contract for the procurement of BrahMos missiles and Astra missiles during a bilateral meeting with Indian Prime Minister Narendra Modi at the Merdeka Palace in Jakarta on Tuesday, 7 July 2026. This is included in the defence cooperation points between the government and India. The procurement of these missiles adds to the list of primary weapon systems within the defence forces. The BrahMos missile contract was conducted between BrahMos Aerospace and the Ministry of Defence, whilst the purchase of the air-to-air Astra missile was carried out by Bharat Dynamics Limited and Republikorp. The purchase of the two weapon systems from India comes as Prabowo has instructed budget efficiency, a policy outlined in Presidential Instruction Number 1 of 2025. Beni Sukadis, a researcher at the Indonesian Defence and Strategic Studies Institute (Lesperssi), opined that the government is attempting to strengthen its deterrence posture quickly and measurably within a limited fiscal space. According to him, the two weapon systems possess long-range precision strike capabilities. ‘These weapon systems can enhance the protection of coastal areas and strategic shipping lanes, thereby producing a significant deterrent effect,’ he said when contacted on Saturday, 11 July 2026. However, these strategic benefits for defence strengthening must be matched by the state’s fiscal capacity. Beni stated that the procurement of primary weapon systems should prioritise the principle of fiscal prudence, meaning the process must be carried out in stages. ‘By considering lifecycle costs, spare parts, personnel training needs, and maintenance costs,’ Beni said. Therefore, he noted, the choice of financing scheme is crucial. The Ministry of Defence, he continued, could utilise export credit agency facilities backed by a government guarantee institution. ‘Supplier countries generally offer lower funding costs, longer tenors, and more controlled risks compared to private foreign credit,’ he said. Beni assessed that this financing approach allows Indonesia to acquire strategic capabilities not only for the BrahMos missile procurement but also for other weapon systems without excessively burdening the State Revenue and Expenditure Budget. ‘Thus, defence modernisation can proceed in tandem with maintaining fiscal sustainability and national development priorities,’ he said. In addition, he stated that the policy of procuring primary weapon systems is not solely about the financing burden. He mentioned that the aspect of integrating the weapon systems into the command and radar systems also needs attention. On a separate occasion, the Head of the Defence Information Bureau at the Ministry of Defence, Brigadier General Rico Ricardo Sirait, stated that the procurement policy for primary weapon systems is carried out as an effort to fulfil defence needs. He said the weapon systems are also viewed as a long-term strategic investment. The process, he explained, is conducted through state planning and budgeting mechanisms. ‘The government’s efficiency policy is still being implemented, but at the same time, the state also has an obligation to ensure defence readiness is maintained,’ he said on Saturday, 11 July 2026. The objective, Rico explained, is to face the dynamics of the strategic environment and various potential future defence threats. Regarding the contract value for the procurement of the two weapon systems, Rico stated that the information is restricted from public disclosure. He said the government is considering the interests of national defence, security, and military strategy. ‘We cannot convey the details of the contract, including the implementation timeline, number of units, contract value, or delivery schedule,’ Rico said.

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