The Indonesian Defense Sector - Market Opportunities and Entry Strategies, Analyses and Forecasts

Oct. 27, 2010 - PRLog -- This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Indonesian defense industry. In particular, it offers in-depth analysis of the following:

- Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 2010¨C2015, including highlights of the key growth stimulators. It also
benchmarks the industry against key global markets and provides detailed understanding of
emerging opportunities in specific areas.
- Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Indonesian defense industry.
- Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
- Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
- Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Indonesia. It provides an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
- Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and
availability, labor force, demographics, and political and social risk.




Table of Contents  
1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Terrorism Index
1.5 About ICD Research Defense Intelligence Center
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size-Historical and Forecast
3.1.1 Indonesian defense expenditure to increase at a CAGR of 12.85% during the forecast period
3.1.2 Natural disasters, indigenization, tensions with Malaysia, an accumulation of demand, and border security expected to fuel defense expenditure
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure share in defense budget to increase during the forecast period
3.2.2 Army and navy to constitute majority of defense expenditure
3.2.3 The Indonesian army receives the majority of country's defense expenditure
3.2.4 Naval expenditure to increase at a CAGR of 19.53% over the forecast period
3.2.5 Air force expenditure to experience decreased growth
3.2.6 Research and development and other defense expenditure to reach US$2513 million by 2015
3.3 Homeland Security Market Size and Forecast
3.3.1 Homeland security market estimated to value US$2.82 billion in 2009
3.3.2 Security and safety equipment imports to increase over the forecast period
3.3.3 Cultural and ethnic issues will encourage investment in the procurement of homeland security equipment
3.4 Benchmarking with Key Global Markets
3.4.1 Over the forecast period Indonesia will maintain a limited presence in the international defense market
3.4.2 Indonesian defense expenditure capability limited in comparison to that of developing countries
3.4.3 Indonesian defense expenditure as a percentage of GDP among the lowest worldwide
3.4.4 Indonesia suffers from a moderate level of terrorist activity
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Naval development will increase submarine demand
3.5.2 An increase in the procurement of military transport aircrafts to perform dual function
3.5.3 Demand for trainer and fighter aircrafts to grow in the near future
3.5.4 Procurement of unmanned aerial vehicles to provide strategic military capability
3.5.5 Demand will increase for radar systems over the forecast period
3.5.6 Sea border security concerns expected to drive demand for patrol boats and warships
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Defense imports expected to grow significantly over the forecast period
4.1.2 Ships and aircrafts constitute majority of Indonesian defense imports
4.1.3 Russia is emerging as a significant defense trade partner
4.2 Export Market Dynamics
4.2.1 Indonesia does not possess significant defense export capability
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low to high
5.1.2 Bargaining power of buyer: high to low
5.1.3 Barrier to entry: medium
5.1.4 Intensity of rivalry: low to medium
5.1.5 Threat of substitution: high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Defense investment policy conducive to both domestic and foreign investment
6.1.2 New procurement policy to support small and medium enterprises
6.2 Market Entry Route
6.2.1 Foreign defense suppliers enter the Indonesian defense market primarily through joint ventures
6.3 Key Challenges
6.3.1 Small defense budget deters investment
6.3.2 Challenges in defense management practices obstruct efficient utilization of resources
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Public Sector Companies
7.2.1 PT Dirgantara Indonesia: overview
7.2.2 PT Dirgantara Indonesia: product focus and services
7.2.3 PT Dirgantara Indonesia: recent announcements and strategic initiatives
7.2.4 PT Dirgantara Indonesia: alliances
7.2.5 PT Dirgantara Indonesia: recent contract wins
7.2.6 PT Dirgantara Indonesia: financial analysis
7.2.7 PAL Indonesia: overview
7.2.8 PAL Indonesia: products focus and services
7.2.9 PAL Indonesia: recent announcements and strategic initiatives
7.2.10 PAL Indonesia: alliances
7.2.11 PAL Indonesia: contract wins
7.2.12 PAL Indonesia: financial analysis
7.2.13 PT Pindad: overview
7.2.14 PT Pindad: products focus and services
7.2.15 PT Pindad: recent announcements and strategic initiatives
7.2.16 PT Pindad: alliances
7.2.17 PT Pindad: recent contract wins
7.2.18 PT Pindad: financial analysis
7.2.19 Dok & Perkapalan: overview
7.2.20 Dok & Perkapalan: product focus and services
7.2.21 Dok & Perkapalan: recent announcements and initiatives
7.2.22 Dok & Perkapalan: alliances
7.2.23 Dok & Perkapalan: contracts
7.2.24 Dok & Perkapalan: financial analysis
7.3 Key Private Sector Companies
7.3.1 PT Dahana: overview
7.3.2 PT Dahana: products focus and services
7.3.3 PT Dahana: recent announcements and strategic initiatives
7.3.4 PT Dahana: alliances
7.3.5 PT Dahana: recent contract wins
7.3.6 PT Dahana: financial analysis
7.3.7 PT Multiintegra: overview
7.3.8 PT Multiintegra: product focus and services
7.3.9 PT Multiintegra: recent announcements and strategic initiatives
7.3.10 PT Multiintegra: alliances
7.3.11 PT Multiintegra: contracts
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