As a supplier of arms and ammunition for Indonesian Army Force (TNI AD), PT. Pindad (Persero) is quite potential to grow bigger. Unfortunately, PT. Pindad is still facing difficulty in the form of capital aspect.
According to the Army Chief of Staff (KSAD) General TNI Mulyono, the Ministry of state-owned companies company should give capital support for PT. Pindad, which is now in difficulty to find capital for their business. The General TNI Mulyono said that PT. Pindad is potential to develop, due to the large and increasing need of weaponry system.
In the present time, TNI AD alone needs 120 million ammunition every year, while PT. Pindad can only supply about 90 million ammunition. This means there are 30 million ammunitions not yet met by PT Pindad for TNI AD.
Due to the fact, PT. Pindad has started to seek funding source from the capital market. This becomes the first corporation act for this national weapon producer to seek funds from the capital market.
In past, actually, Pindad never sought funds from the capital market. Now, however, related to cheaper funds, it needs to find funds from the capital market.