Indonesia Buys Chinese Missile for Warships

Jan 29, 2013- TEMPO Interactive, Jakarta: The Indonesian Navy (TNI AL) will use C-705 missiles from China in its locally-made fast missile boats (KCR). According to plan, 16 KCR-40 warships manufactured in Batam by PT Palindo Marine will be equipped with the missiles.

"The contract had been signed, the missiles are expected to arrive in 2014," First Admiral Untung Suropati, Chief of Information Center for TNI AL, told Tempo on Monday, January 28.

In accordance with Law No.16/2012, the government will cooperate in technology transfer in the purchasing scheme. With the scheme, it is expected that three domestic factories: PT. Pindad, Lapan, and PT. Indonesian Aerospace, will be able to manufacture their own missiles.

Earlier, the Director General of Defense Potential at the Defense Ministry, Pos Batubara, said that he was negotiating a technology transfer contract with China's manufacturers. He ascertained that local producers will be involved in the process. "We hope to be able to produce the missile ourselves," he said.

Head of Defense Planning Division at the Ministry of Defense, Major General Ediwan Prabowo, said that a number of local manufacturers have started their involvement in arming KCR 40. "PT. Pindad had begun its involvement, but the percentage is still small," Ediwan stated.

Without mentioning China's missile procurement contract, Ediwan said that the cost to make the KCR 40 amounts to Rp 75 billion per unit. The entire fund was sourced using a domestic lending scheme.