Cash-Flush TNI ‘Receptive’ to Saab Pitch for Airborne Radar Platform

Swedish aerospace and defense firm Saab plans to continue discussions with the Indonesian Air Force for the purchase of an airborne early warning and control system amid the nation’s heightened efforts to secure its borders.

Martin Vobora, the company’s senior director of marketing and sales for Asia Pacific region, told the Jakarta Globe that government officials have been largely receptive to the offer.

“It seems like the government realized that there is a need for the technology. Now, it’s just a matter of timing and placement,” he said in Linkoping on Tuesday.

Still, he noted that no official talks have yet taken place regarding procurement Saab’s airborne early warning and control system, known as the Erieye AEW&C mission system.

Other companies offering airborne early warning systems include Northrop Grumman and its E-2C Hawkeye airplane.

Saab’s Erieye AEW&C is capable of multiple roles, including air surveillance, sea surveillance and intelligence, the Swedish company said. The radar can be installed on three different platforms, including Saab 340 and 2000 aircraft.

The technology, which has been operational since 1996, has been used in seven countries — including Thailand, Mexico and Brazil — for both military and civilian purposes, such as protection against illegal fishing and drug trafficking.

“There are two keywords for the Erieye system, coverage and mobility,” Lars Ekstrom, business developer of marketing and sales for Saab’s electronic defense systems, told reporters in Gothenburg, Sweden, on Monday.

The Swedish company is offering the airborne early warning control system amid ongoing discussions with Air Force officials on the possible purchase of the Gripen fighter jet. Saab currently has branch offices in 35 countries. Its Indonesian office was established in late 2013.

Since then, Saab Indonesia has signed early-stage agreements with a few local companies, such as state-owned weapons manufacturer Pindad and state electronics manufacturer Len Industri.

“It’s good for us to have local partners for maintenance and it’s also good in helping the country with its industrial base,” said Lars Tossman, vice president and head of airborne surveillance systems.

Indonesia has budgeted 7 percent of its annual spending on defense over the past two years in an effort to revamp its aging military arsenal. Military spending increased by 3.3 percent to Rp 97 trillion ($7.8 billion) in the 2015 state budget compared with the previous year— the equivalent of roughly 1.2 percent of Indonesia’s gross domestic product — with 40 percent of it allocated to weaponry and equipment.

“[Saab Technologies] has been very successful in making things cost-efficient … Indonesia is on the right track to growth and we’d like to be a part of it and help the industrial base,” Tossman added. “That’s the reason we invest.”

GlobeAsia was invited to Sweden by the Saab Group.

  ★ Jakartaglobe