Challenges Ahead for Indonesia’s First Defence Offset Policy

Offset is a ubiquitous characteristic of the contemporary arms trade. Yet, Indonesia, surprisingly, is one of the few countries engaging in defence acquisition without formal requirements for offset. This will soon change, with Jakarta reportedly due to launch the country’s first national offset policy in June this year. Lessons learned from the offset experiences of other countries suggest that the policy should firstly be crafted to reflect Indonesia’s unique economic and security environment and secondly weaved within a broader defence-industrial tapestry.

Co-written with Prof Ron Matthews and Curie Maharani, published in Defence Review Asia, 27 April 2012,

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