Indonesia's Pindad to Build Weapon Factory in Middle East

DEFENSE AND TECHNOLOGY -- State-owned weapons producer PT Pindad plans to form a joint venture with a Middle Eastern country to build a weapons factory.

Pindad president director Silmy Karim said on Thursday that the company would first select one of two potential Middle Eastern countries, which he declined to name, that had expressed interest in the joint venture project.

"The first contract is worth US$30 million, which will cover components up to production stage," Silmy said, The Jakarta Post reported.

He said the cooperation would include the production of large fiber ammunition and weapons at the factory, which would be licensed by PT Pindad.

In return, the selected country would provide enhanced technology and access for PT Pindad to its facilities, Silmy said.