Indonesia Advanced Defense Communications Technology
Indonesia’s rapidly growing demand for advanced defense communication systems presents a strategic opportunity for U.S. companies specializing in secure communications, radar, satellite, and integrated command technologies. With Indonesia’s defense budget poised to exceed $22 billion—and nearly 40% of that directed toward military equipment and communications—U.S. firms have a timely opening to forge key partnerships and supply cutting-edge solutions that can enhance Indonesia’s national security and operational readiness across both military and civilian domains.
Indonesia, with 67,500 miles of coastline—the second longest in the world after Canada—and its strategic position along the vital Malacca Strait shipping lane, holds significant geopolitical and economic importance. However, these natural advantages also come with growing security and sovereignty challenges. One of the persistent challenges for the Indonesian military is ensuring reliable communication—particularly during ground-to-air operations. In some cases, communication between aircraft crews and ground control has had to rely on messaging apps as a last-resort backup. This highlights a critical need for more advanced and dependable systems, and Indonesia has recognized the urgent need to modernize and strengthen its defense communication technology systems.
A key focus area is Alutsista, the military equipment and weapons systems used by the Ministry of Defense and the Indonesian Armed Forces (TNI). This includes the communication systems that support both daily operations and critical missions. Indonesia’s new administration, which took office in October 2024, has elevated the priority of modernizing Alutsista, with a particular emphasis on communications.
In July 2025, Indonesia’s Minister of Defense submitted a proposal to the House of Representatives for an additional $11.5 billion in defense funding, supplementing the already approved $10.5 billion budget for 2026. If approved, this would bring the total defense budget to $22 billion, with approximately 40% earmarked for Alutsista, signaling a significant investment in strengthening the country’s defense capabilities. A decision on the proposed funding is expected by the end of September.
U.S. companies specializing in advanced communication technologies—such as radio, radar, satellite, and integrated command and control systems—are well-positioned to capitalize on this growing demand. Beyond military use, there are also significant opportunities in areas such as emergency and disaster response, border security, anti-illegal fishing and logging operations, and counter-terrorism efforts.
Connect with your local U.S. Export Assistance Center in the United States to schedule an appointment for a consultation.
For more information, contact the U.S. Commercial Service in Indonesia: Mario Simanjuntak, Commercial Specialist, U.S. Embassy Jakarta, Mario.Simanjuntak@trade.gov.