PT. Pindad Cooperation Synergy with Private Owned Enterprises in Defense Sector

The ability to produce domestic defense equipment (Alutsista) is crucial for national sovereignty, ensuring availability during conflicts, creating jobs, and driving technological and industrial growth. Indonesia relies on State- Owned Enterprises (BUMN) like PT. Pindad for Alutsista production. However, PT. Pindad still requires support from other parties due to limited technology and expertise, especially in developing and modernizing defense systems for the Indonesian National Army. This study, using a descriptive qualitative method through a literature review, explores PT. Pindad's collaboration with private enterprises. The findings show that PT. Pindad has stronger synergy with foreign private-owned companies than domestic ones, mainly due to reliance on imported components such as engines, transmissions, fire control systems, and electro- optics targeting systems (EOTS).