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 procurement contracts for BrahMos missiles and Astra missiles during a bilateral meeting with Indian Prime Minister Narendra Modi at Merdeka Palace, Jakarta, on Tuesday, 7 July 2026. This was set out in the points of cooperation between the government and India in the defence sector.

The missile procurement adds to the list of primary weapons systems in Indonesia’s defence capabilities. The BrahMos missile contract was signed between BrahMos Aerospace and the Ministry of Defence, while the purchase of Astra air-to-air missiles was carried out by Bharat Dynamics Limited and Republikorp.

The purchase of the two weapons systems from India came as Prabowo instructed budget efficiency measures, as set out in Presidential Instruction Number 1 of 2025.

Beni Sukadis, a researcher at the Indonesian Institute for Defence and Strategic Studies (Lesperssi), argued that the government is seeking to strengthen its defence deterrence quickly and measurably amid limited fiscal space. According to him, both weapons systems have long-range precision strike capabilities.

“These systems can enhance the protection of coastal territories and strategic shipping lanes, thereby producing a significant deterrent effect,” he said when contacted on Saturday, 11 July 2026.

However, the strategic benefits of strengthening defence must be matched by the state’s fiscal capacity. Beni said weapons procurement should prioritise the principle of fiscal prudence, so the process must be carried out in stages.

“Taking into account life-cycle costs, spare parts, personnel training needs, and maintenance costs,” said Beni.

Therefore, he said, the choice of financing scheme is crucial. The Ministry of Defence, he continued, could utilise export credit agency facilities backed by government guarantee institutions.

“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 would allow Indonesia to acquire strategic capabilities not only for the BrahMos missiles but also for other weapons systems without excessively burdening the state budget.

“That way, defence modernisation can proceed in tandem with the preservation of fiscal sustainability and national development priorities,” he said.

Furthermore, he said the weapons procurement policy is not merely a matter of financing burden. He noted that the integration of the systems into the command structure and radar systems also needs attention.

In a separate occasion, Brigadier General Rico Ricardo Sirait, Head of the Defence Information Bureau at the Ministry of Defence, stated that the weapons procurement policy was carried out to fulfil defence needs. He said the systems should also be viewed as long-term strategic investments.

The process, he said, was conducted through state planning and budgeting mechanisms. “The government’s efficiency policy continues to be implemented, but at the same time the state is also obliged to ensure that defence readiness is maintained,” he said on Saturday, 11 July 2026.

The aim, Rico explained, is to face the dynamics of the strategic environment and various potential defence threats in the future. Regarding the contract value of the two weapons systems, Rico said that information is restricted from the public.

This is because, he said, the government is weighing the interests of national defence, security, and military strategy. “We cannot disclose contract details, including the implementation timeline, number of units, contract value, or delivery schedules,” said Rico.

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