New Market Report: Indonesia Defence & Security Report Q3 2014

Indonesia benefits from a substantial size advantage over its neighbours, although the relevance of this has declined as the South East Asian region continues to display considerable stability. The success of ASEAN has fostered a diplomatic rationality, with only a handful of relatively minor confrontations enduring, most notably a Sino-Philippine dispute over a number of minor islands. In spite of this, Indonesian military moderni s ation will continue, despite the greatest threats to Indonesian security being internal ones.

For its part, Jakarta has good relations with Beijing. However, the Indonesian side has expressed concern over some Chinese activities in the South China Sea, and Beijing must tread carefully in order to remain on good terms with South East Asia's key state. Indeed, Indonesian pressure will be critical in ensuring that China follows through on its promise to come to the table to negotiate a new Code of Conduct for the South China Sea, although progress to date has been limited, despite the best intentions of Jakarta and Washington, amongst others .

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Indonesia's regional importance as the driving force of the Association of Southeast Asian Nations (ASEAN) group has been reinforced in a number of respects. Australia's Prime Minister Tony Abbott visited Indonesia in September 2013 and declared that the bilateral relationship with Jakarta's was Australia's 'single most important [one]' we have. US President Barack Obama cancelled a trip to Indonesia in October 2013 due to political problems back home, and was severely criticised by Asia watchers for passing up an important opportunity to boost relations with key regional allies.

Domestically, however, Indonesia has some security concerns. The economy remains under pressure, and this has potential implications for social stability and for Indonesia's ability to procure foreign weaponry. In August, Jakarta announced an 8.3% defence budget increase for 2014, but in USD terms the defence...

The Indonesia Defence & Security Report features Business Monitor International (BMI)'s independent forecasts for national and international security, the defence industry, military expenditure, employment in arms production, and arms imports and exports, as well as examining industry trends and prospects, national and multinational arms producers and the regulatory environment.

BMI's Indonesia Defence & Security Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Indonesian defence and security industry.

Key Benefits

* Benchmark BMI's independent defence and security industry forecasts on Indonesia to test other views - a key input for successful budgetary and strategic business planning in the Indonesian defence and security market.

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