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United Arab Emirates defence conglomerate EDGE Group has announced it will supply an ammunition production line to Indonesian state-owned defence enterprise PT Pindad.
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Under the US$27 million agreement, the production line will include production of 5.56x45mm and 7.62x51mm calibre ammunition for PT Pindad, which provides munitions and armaments for the Indonesian National Armed Forces and other Republic of Indonesia uniformed agencies.
“The agreement is for the production of 5.56x45mm and 7.62x51mm calibre ammunition and is aligned with the Indonesian Ministry of Defence’s objective to increase local job creation and sovereign manufacturing capabilities," according to a statement published by EDGE Group on 14 May this year.
“The ammunition facility is scheduled to commence production in 2026.
“The agreement is part of an ongoing effort between both countries that aims to increase bilateral trade to US$10 billion by 2030 under the Comprehensive Economic Partnership Agreement.
“The agreement follows similar cooperation announced in late 2022 in which EDGE Group-subsidiary ADSB signed a memorandum of understanding with Indonesia’s state-owned shipbuilder PT PAL.
Under that agreement, both parties agreed to strengthen cooperation and leverage the capabilities of both partners to build a range of interceptors, landing craft, and rigid-hull inflatable boats for Indonesia’s naval and coast guard requirements
“Our cooperation with PT PAL clearly strengthens our investment in Indonesia and the global export success of our world-class vessels,” ADSB chief executive officer David Massey said at the time of the signing.
“Establishing robust strategic partnerships not only forms the cornerstone of ADSB and EDGE’s long-term strategies but contributes to the sustainable economic development of the UAE.
“We are very pleased to be working with PT PAL and we look forward to jointly pursuing opportunities that will help to achieve our respective business and national objectives.”
