Rheinmetall Denel strengthens bonds with Indonesian defence sector


South African-based Rheinmetall Denel Munition (RDM) and state-owned Indonesian PT Pindad have strengthened their partnership with the signing of a teaming agreement at the just-ended African Aerospace and Defence (AAD) exhibition.

This follows the signing earlier this year of a non-disclosure agreement and Memorandum of Understanding (MoU) between the two parties.

Norbert Schulze, Chief Executive of Rheinmetall Denel Munition, said the teaming agreement will see further co-operation between the two companies and encompasses several product groups as well as training requirements.

To obtain best possible value from the teaming agreement both companies will in the months ahead establish working groups to find ways to develop and manufacture products for users in the region.
“‘This is also the first step in Rheinmetall’s strategy to create a manufacturing hub for South East Asia in Indonesia,” Schulze said.

Sudirman Said, Chief Executive of PT Pindad said the new agreement builds on existing shared synergies – both companies are national strategic manufacturers of large calibre ammunition in their respective countries. They also possess key technologies and products that can be delivered to the Indonesian defence force and surrounding countries.
“We are looking forward to entering into a long-term relationship which will be of benefit to both companies and to our respective countries,” he added.

The August MOU will see RDM producing ammunition ranging from 30 to 105mm for the Indonesian military and export customers. It will also lead to a joint venture to construct a 168ha ammunition manufacturing facility in Malang, East Java.

RDM produces a variety of ammunition, including 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 Pindad is an Indonesian government owned company that designs, develops and manufactures small calibre arms and ammunition, protected vehicles, aircraft bombs, mortar ammunition and 105mm artillery ammunition along with other products.