Observer states offset cooperation concept benefits the nation
Jakarta (ANTARA) - Defence observer from Marapi Consulting, Alman Helvas Ali, believes that the concept of offset cooperation in the procurement of main weapons systems can provide long-term benefits to the state. This is because, through such cooperation, defence equipment manufacturers can provide reciprocity in the form of improved human resource quality and weaponry technology to the purchasing nation.
“Offset is merely one stage in mastering advanced technology. The technology obtained from offsets must be used to develop new products of our own making,” said Alman in an official press release received in Jakarta on Monday.
However, Alman noted that the offset concept can only achieve maximum impact if the domestic defence industry is involved in the cooperation. He believes that offsets will be more meaningful if Indonesian companies that receive technology are subsequently trusted to develop simulators or similar products for national defence needs.
“How can companies prove they have absorbed simulator technology if they are not given the opportunity to develop products based on the knowledge they gained from the offset?” he explained.
With the existence of this offset concept, Alman is confident that the domestic defence industry will become increasingly strong and self-sufficient by receiving extensive knowledge from foreign defence industries.
Previously, the Secretary of the Research and Development Agency of the Ministry of Defence, Marsma TNI S Arief Hardoyo, also supported the concept of “offset” cooperation over Transfer of Technology (ToT) in military industry collaborations, as it is more beneficial to the state. According to him, it is quite difficult for weapon system manufacturers to provide ToT facilities to those wishing to purchase their products.
“From experience, when we purchase F-16s, being given an offset is already good, as it can be worked on in Indonesia. If we demand ToT, it becomes irrational; the correct approach is for us to master and learn from them,” he said during a discussion at the Indo Defence event, as quoted from an official press release by the Indonesia Strategic and Defence Studies (ISDS) and Indo Defence Magazine (IDM) received by Antara on Friday (13/06/2025).
Such conditions could threaten the sustainability of the defence industry itself. Meanwhile, under the offset concept, manufacturers apply the STEM (Science, Technology, Engineering, and Mathematics) concept in partner countries. This was implemented by aircraft manufacturer Boeing and Indonesia during the purchase of 24 F15EX fighter jets in August 2023.
Under the offset concept, Boeing provides a cooperation framework to develop the capabilities of the Indonesian defence industry, particularly in the fields of technology and education. Through this cooperation, Boeing seeks to develop human resource quality by increasing collaboration in education related to technology and science.
“Through cooperation with schools and universities, Boeing helps create an educational ecosystem capable of producing new talents in high technology,” said Randy Rotte, Director for India, Asia, and Pacific, Boeing Defense, Space & Security, in the same press release.
With this method, Indonesia does not merely receive raw technology, but rather a strong foundation in the form of high-quality human resources to create more advanced defence technology in the future.