The Role of Strategic Industries in Improving the National Economy to Support National Defense

Globalization makes changes very quickly and has a broad impact on the national economy. on the one hand, the most felt influence is the occurrence of increasingly fierce industrial competition and has a strategic function for the Indonesian nation and state. The defense industry is expected to be one of the pillars of the national economy, but it requires a long-term synergy and commitment from all parties. Departing from its strategic role and distinctive character, the defense industry continues to strive to be developed from upstream to downstream both for industry players state-owned enterprises (BUMN) and privately-owned industries (BUMS). This research was carried out with a qualitative approach with descriptive analysis methods through data collection described in detail and regularly through Focus Group Discussions (FGD) with experts. The results of this study indicate that the Development of the Defense Industry includes the implementation of the KLO, International Cooperation, Promotion of the Defense Industry, Licensing of the Defense Industry, and BU Handak, the Defense Technology and Industry Development Program, and 7 (seven) National Priority Programs; Sritex's Strategic Industry Role to Improve the National Economy to Support National Defense managed to dominate about 20% of all textile products in Indonesia. Then, for the sales portion, domestic sales tend to be 60% while exports are 40%; Innovations that Drive Strategic Industry Progress in the Defense Sector have innovation models that can encourage the development of strategic defense industries.