President Prabowo Subianto has claimed that Indonesia's defense industry was on the verge of being acquired by foreign entities, but he intervened to stop the sale. Speaking at a defense industry event in Jakarta on July 10, 2026, Prabowo stated that unnamed foreign parties had sought to take over several state-owned defense firms, which he deemed a threat to national sovereignty.
According to Prabowo, the potential acquisition involved companies producing military equipment and technology. He did not specify which foreign entities were involved or the exact timeline of the proposed sale. The president emphasized that his administration prioritized domestic control over strategic industries.
Prabowo's remarks come amid ongoing efforts to modernize Indonesia's defense sector and reduce reliance on foreign imports. The government has previously announced plans to boost local production of weapons and military hardware. However, no official documents or independent reports have confirmed the alleged near-sale of defense firms.
Critics have questioned the lack of transparency in Prabowo's statement, calling for more details on the foreign parties and the specific companies at risk. The defense ministry has not yet commented on the matter.
