Jakarta. President Prabowo Subianto has claimed to have stopped Indonesia from handing over its defense firms to unnamed "foreign parties".

Indonesia’s defense industry was once on the verge of being acquired by foreign entities, according to Prabowo in West Lombok on Friday. The state-run arms provider Pindad, warship maker PT PAL, and the aerospace firm Dirgantara Indonesia (PTDI) were up for grabs. Prabowo —  who has always been a vocal critic of foreign interference —  did not mention a specific country, nor did he offer clarity on the timeline.

“There were many [state-owned] firms that were almost sold to foreign parties. I forbade it from happening! Our defense companies — be it PT PAL, Pindad, or PTDI — were about to be sold. PTDI was almost killed. … We are bringing all of them back on their feet,” Prabowo said in a televised speech.

“PT PAL can now produce amazing warships and submarines. They will make advanced vessels. I have just received word that Pindad has earned a Saudi contract. Pindad will make all the rifles and machine guns used by the Saudi military.” 

He added: "Our weapons are well-proven."

Pindad did not immediately respond to the Jakarta Globe’s request for comments on the Saudi contract. 

The company shook hands on a memorandum of agreement with the Saudi Arabian Military Industries Defense Systems (SAMI DS) in February 2026. The deal is expected to clear the way for Pindad to manufacture and maintain the produced machine guns in Saudi Arabia. The Middle Eastern country is aiming to localize half of its military equipment spending by 2030. 

PT PAL is currently dedicating a significant amount of its attention to producing the Scorpène-class submarines in partnership with France’s Naval Group.

PTDI has also clinched Philippine-bound export deals for the NC212i aircraft.

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