DETERMINATION OF THE MANUFACTURING COUNTRY ON THE PROCUREMENT OF THE INDONESIA ARMED FORCES EQUIPMENTS USING AHP AND CADMID ANALYSIS FOR STRENGTHENING INDONESIAN DEFENSE STRATEGY

The Indonesian Defense Strategy was developed based on the unique geographical consideration as an archipelagic country. Geographically, Indonesia is located between two oceans and two continents, and has direct sea and land borders with ten other countries - this could potentially be a challenge for Indonesia as the country is supceptible to border disputes and threats that could affect domestic and regional instability. Therefore, it is necessary to prepare the Indonesian Armed Force's defense equipments to deal with developments in the strategic environment in the 21st century or Indo-Pacific era, which greatly affects national conditions. This research aims to determine the foundation for the manufacture of the Indonesian defence equipments in accordance with the industry standardization and Indonesian defense strategy so as to strengthen Indonesian defense strategy. In doing so, the researchers analyze five criterias, namely price, quality, delivery, local content, and technology transfer. The Analytic Hierarchy Process (AHP) and Concept, Assessment, Demonstration, Manufacture, In Service, and Disposal (CADMID) methods were used to determine the country's procurement of Indonesian Armed Force's defense equipments. This research uses a mixed method by studying the data obtained through questionnaires and interviews with a number of respondents and informants, both from the military and academics in the fields of defense and management, as well as literature review. Through AHP and CADMID, four alternative countries were deteremined for Armed Force's defense equipment procurement, namely Domestic (Indonesia); European countries; East Asian countries; and United States. Following that, the Eigen values method was applied using pairwise comparisons. From these comparative values, the relative rank of all alternatives can be determined.