Rheinmetall Denel Munition (RDM) has signed a memorandum of understanding with PT Pindad to produce ammunition ranging from 30 to 105 mm for the Indonesian military as well as export customers.
The agreement was signed in the Indonesia capital Jakarta on August 7, local media reported. The agreement will see RDM and Pindad form a joint venture in 2015 to construct a 168 hectare facility in Malang, East Java, to manufacture ammunition.
The agreement was signed by RDM CEO Norbert Schulze and PT Pindad Director Sudirman Said. Schulze said Pindad was chosen as it has the ability to produce small calibre ammunition. He said the Indonesian company has mostly old machinery but this will be improved through the new partnership.
“This cooperation will make the factory the biggest ammunition production facility in Southeast Asia,” Said said. “The cooperation is expected to fulfil internal demands by the Indonesian Military (TNI) as well as to make Pindad a manufacturing hub to supply countries in the Asia Pacific region.”
He noted that the signing of the memorandum of understanding was the first stage of cooperation and that a task force will now be formed to take the project further. By the end of the year it will have been decided exactly which calibres of ammunition will be produced.
In addition to producing medium and large calibre ammunition, Pindad will also function as a sales centre for the Asia-Pacific region.
Rheinmetall Denel Munition produces a variety of ammunition, such as 105 and 155 mm artillery shells, 60, 81 and 120 mm mortars, 40 x 51 mm grenades, 76/62 mm shells and mine breaching systems. It also manufactures two to three ammunition filling plants a year for export. RDM builds the plant, inspects it and then disassembles and ships it to the customer but also sells the ‘ingredients’ for the plants. The company has established ammunition filling plants in 34 different countries over the last three decades.
PT Dindand is an Indonesian government owned company that manufactures small arms, grenades, mortars and armoured vehicles in addition to producing ammunition.