An international relations expert at the University of Indonesia, Makmur Keliat, said that as Indonesia has lost its deterrent capacity in regards to neighboring countries, it must build up its military capability.
"But instead of purchasing all of our equipment, Indonesia must try to build our defense industry by embarking on joint production efforts with countries which have the technology," he said at a seminar on Indonesia-India relations organized by the Habibie Center in Jakarta on Wednesday.
He said that India, which has a long history of building its own military and nuclear capabilities, could provide Indonesia with joint production programs that allowed for a transfer of technology.
Makmur underlined the difficulty the Indonesian Air Force has had operating the Sukhoi fighter jets it bought from Russia.
"Because of expensive oil, our pilots have flown the jet fighters much less than the international standard of required flying hours. It is no use of buying jet planes if we can't use them," he said.
Makmur said the ability to produce its own equipment would mean Indonesia avoided such problems in the future.
Polish Ambassador to Indonesia Tomasz Lukaszuk, however, questioned the slow response of PT Dirgantara Indonesia (PTDI) to Poland's joint production proposals, and the company's fate after it was declared bankrupt by the court.
"PTDI is a big player in the aircraft industry in the region. It has such a big potential," he said.
The domestic aircraft industry took a serious blow Monday after state-owned aircraft and military equipment manufacturer PTDI was declared bankrupt by the court, although the government has appealed to the Supreme Court.
Indian Ambassador to Indonesia Navrekha Sharma hinted that an India-Indonesia strategic agreement signed in 2005 opened the possibility for joint production programs in defense and military equipment beside procurement schemes.
"Our defense cooperation is the fastest growing sector next to trade and investment cooperation," she said.
She said the bilateral strategic partnership had opened many opportunities for strengthening defense, political, and economic relations between the two countries, citing a significant increase in trade and investment as an example of the growing ties.
Sharma added that India could offer Indonesia cooperation in education and science, information technology, space technology, pharmaceutical and banking.
"We believe that healthy relations should be based on balanced relations. The Indonesian businesspeople should place their investments, and should find markets for their products in India. We welcome more of Indonesia's high value-added products, not just unprocessed goods to India," she said.
Sharma said that the lack of direct flights from Jakarta to New Delhi was slowing growth of more robust relations between the two countries.
The bilateral trade value jumped to US$4.79 billion in 2006 from $3.93 billion in 2005. The trade value has tripled in the last five years, from $1.93 billion in 2002.
The balance trade was in favor of Indonesia in 2006, with exports to India at $3.39 while imports reached $1.40 billion.
Makmur underlined the need for Indonesia to broaden understanding and familiarity with India's significance among Indonesian students, academics and businesspeople to be able to narrow the gap between agreements and their implementation.
An international expert at the Indonesian Institute of Science, Dewi Fortuna Anwar, who moderated the seminar, said that a democratic India which was successful was more important for Indonesia than China's success as it could become an example of the prosperity that a democratic system could bring.
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