Indonesia Defense Ministry Requires MRO Capability Transfer in New Weapons Procurement
The Ministry of Defense applies a life-cycle cost strategy: MRO budgets flow to state-owned defense companies, and purchases of new major weapon systems from abroad must transfer depot-level maintenance capabilities to domestic industry.
The Indonesian Ministry of Defense has introduced a life-cycle cost strategy for major weapons procurement. According to statements by Brigadier General Rico Sirait, Head of the Ministry's Defense Information Office, budget allocations for maintenance, repair and overhaul (MRO) are directed consistently to state-owned defense companies, and every purchase of new major weapon systems from abroad must be accompanied by the transfer of depot-level maintenance capabilities to domestic industry.
State arms maker Pindad has stated that its MRO division is expanding its scope to cover the maintenance of imported weapon systems currently operated by the Indonesian National Armed Forces, in addition to its own products. The policy links new acquisition contracts, including fighter aircraft, submarines and main battle tanks, to the establishment of new domestic maintenance capabilities.
The announcement was made in late October 2026 and reported in a Kompas series on defense equipment maintenance spending. The Ministry has also indicated that readiness, rather than the number of units procured, is the primary measure of defense spending effectiveness.