Transfer of Technology Process between Indonesia and France

Abstract

Indonesia's bilateral partnerships, especially in defense-security equipment trade with various countries, have increased significantly in recent years. A distinctive feature of defense equipment imports in Indonesia is the obligation to carry out offsets. However, constraints on the offset process or suboptimal technology transfer often prevent the government and industry from mastering the technology of the products that have been purchased. This will have an impact on the entire life-cycle of the purchased product, starting from product procurement to its disposal phase. In addition, it also has its own effect on efforts to increase the research and development capabilities of domestic defense equipment. This paper will compare and describe the critical points of the technology transfer process of the French defense industry (Naval Group) with the Indonesian defense industry (PT PAL Indonesia).