http://www.defenseindustrydaily.com/rolling-sales-indonesia-becomes-the-latest-buyer-of-german-tanks-013042/
Rolling Sales: Indonesia Becomes the Latest Buyer of German Tanks
May 12, 2013 20:11 UTC by Defense Industry Daily staff  
Leopard 2A6
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In August 2012, reports emerged that Indonesia had made a deal with Germany to 
buy heavy tanks and infantry carriers, after the Dutch had demurred. The 
Indonesian Army has a long record of human rights abuses, which sparked 
considerable opposition in the Netherlands. In contrast, Germany has been 
pushing hard for defense exports as a way to keep its defense industrial base 
busy, and of preserving jobs amidst Europe’s economic slowdown.

In May 2013, those reports were finally confirmed. What is the exact shape of 
the deal? How will the new vehicles fit with, and compare to, Indonesia’s 
existing equipment? And how did we get to this point?




Indonesia’s Armor
 
Singaporean AMX-13
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Indonesia’s order covers 104 Leopard 2 tanks, 50 Marder 1A2 infantry fighting 
vehicles, 4 Armored Recovery Vehicles to tow tanks out of trouble, 3 mobile 
bridge-layers, and 3 AEV armored engineering vehicles. The IFVs are from German 
Army stocks, and reports suggest that the tanks will be second hand as well. 
This may be why previous reports have mentioned the Leopard 2A4 and 2A6 
variants for Indonesia, even though recent sales to Qatar and Saudi Arabia have 
involved the 2A7 variant. Rheinmetall’s Leopard MBT Revolution kit has also 
been mentioned, with extra armor, 360 degree visibility from mounted sensors, 
and other changes designed to adapt the tanks for urban warfare and 
counter-insurgency. The ARVs, AEVs, and bridge-layers are expected to be based 
on the Leopard 2 chassis, and the used Marders are likely to see a few upgrades 
before shipment.

The new vehicles will represent a big upgrade in both firepower and defensive 
protection. Indonesia currently fields about 100 British FV101 Scorpion 90 
light tanks, and 70 or so related Stormer APCs and specialty vehicles. 300 aged 
French AMX-13 light tanks accompany the Scorpions as high-caliber firepower, 
and they’re accompanied by 200 AMX-VTT armed personnel carrier derivatives. The 
AMX-13 tanks are a 1950s era design, but they’re also uniquely light at just 
14.5t, which improves waterborne carriage options and helps in soft terrain. 
Indonesia is the tank’s largest user, and its neighbor Singapore remains the 
2nd largest. By comparison, the Marder infantry carriers Indonesia is receiving 
are double the AMX-13′s weight, and Leopard 2A6s are more than 4x heavier at 
62.3t.

 
(click to view full)
French VAB wheeled APCs are used for foreign deployments, and over 150 locally 
made Pindad “Anoa” wheeled APCs are used at home. A range of about 200 lighter 
armored cars round out its mechanized forces.

There are some concerns within Indonesia that the new heavy armor will be too 
heavy for Indonesian roads and infrastructure, and questionably suited to its 
terrain. Indonesia’s fragmented geography is a challenging place to use tanks 
in any event, and the TNI-AD is forced to scatter its armored battalions across 
multiple islands. The Leopards and Marders don’t have to be suited to all of 
them, as long as they can find useful employment in a couple of places.

It’s worth noting that Singapore, the world’s 2nd largest user of AMX-13 tanks, 
bought Leopard 2A4 tanks in 2006.

Contracts & Key Events
 
Marder 1A3
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May 9/13: Confirmation. German Green party representative Katja Keul finally 
gets the details of Germany’s sale, thanks to a parliamentary question. The 
German government has authorized the export of 104 Leopard 2 tanks, 50 used 
Marder 1A2 infantry fighting vehicles, 4 Armored Recovery Vehicles to tow tanks 
out of trouble, 3 mobile bridge-layers, and 3 AEV armored engineering vehicles.

The sale furthers a broader shift in German export policies, which had 
traditionally favored items like warships and submarines, but not tanks and 
equipment that lends itself to use against civilian populations. KMW recently 
confirmed an export order from Qatar for Leopard 2A7 tanks and PzH-2000 
howitzers, a larger deal with Saudi Arabia has been widely rumored, and Algeria 
 is buying German armored vehicles in the wake of an extremely bloody civil 
war. 

In Indonesia’s case, the German government is citing a durable democratic 
transformation as the rationale for approving the sale. Indonesia has made 
considerable progress in this area. On the other hand, the left-wing opposition 
is citing a longer history of human rights abuses by Indonesia’s military, and 
persecution of ethnic and religious minorities, that had stopped the Dutch from 
going ahead. Keul openly refers to Germany’s arms expeort policies as being not 
worth the paper they’re printed on under the current government (“…die 
Rustungsexportrichtlinien unter ihrer Regentschaft nicht einmal mehr das Papier 
wert”). Der Spiegel  || In German: Katka Keul – response from Anne Ruth Herkes  
[PDF] and Release  [no permalink] | Die Welt  | Reuters Deutschland  | Stern . 

Sale confirmed

Nov 2/12: Types & details. The Indonesian government is saying that it is 
buying used Leopard 2 main battle tanks, Marder infantry fighting vehicles 
(IFVs) and support tanks from Germany. It expects the first shipment before the 
end of 2012. Deputy Defense Secretary Sjafrie Sjamsuddin told the DPA news 
agency in Jakarta that:

  “We are buying Leopard 2A4 and Leopard 2 Revolution models that are already 
modified and have new armaments…. All the political and administrative 
processes are complete, we are in the production phase…. We can use them as 
soon as they arrive…. The memorandum of understanding will stipulate the 
transfer of technology and the provision of spare parts.”

Indonesia names Dusseldorf-based Rheinmetall as its contract partner, and the 
MBT Revolution  is Rheinmetall Defence’s modular upgrade package for urban 
warfare. The deal to refurbish the vehicles and add Indonesian systems is 
supposedly worth around EUR 216 million ($280 million), but Rheinmetall 
declines any comment on the sale. 

What makes the story especially interesting is the fact that a representative 
of the German Ministry for Economics and Technology said on Oct 29/12 that 
“There is no request prior to export of Leopard tanks to remain in Indonesia.” 
In Germany all arms deals have to be approved by the Federal Security Council, 
which meets in closed session. Its secret decisions are only revealed after the 
fact, in the annual arms exports reports. Defense News .

Sept 14/12: Vice Minister of Defense Sjafrie Sjamsoeddin welcomes the visit of 
Germany Charge d’affaires Heeidrun Tempel. Indonesia will reportedly buy 50 
Marder 1A3s and 103 Leopard tanks, and Sjamsoeddin says that the final contract 
with Rheinmettal AG is scheduled for the 4th week of September. Republika adds 
that :

  “…Rheinmetall AG had prepared the first dispatch of Leopard. Yet, due to 
unfinished administration and logistic, the Leopard will arrive in Indonesia on 
early November.”

Aug 24/12: Application in. Jakarta Globe :

  “Indonesia is going ahead with plans to purchase used Leopard 2 battle-tanks 
from Germany, according to documents seen by DPA…. An application for the 
export of four such tanks to the Asian nation was filed on July 23, according 
to a German Defense Ministry statement to the opposition Green Party, which 
opposes military exports to countries where they might be used in human rights 
breaches.”

July 11/12: Sale, or no? After the Jakarta Post reports that Indonesia wants to 
sign a EUR 220 million deal for 100 Leopard 2 tanks, including 15 used tanks, 
the German government finds itself on the defensive. Cancellor Angela Merkel 
would only say that no details had been discussed during her meeting with 
Indonesian President Susilo Bambang Yudhoyono, but by the end of May 2012, the 
government had to reveal that Indonesia had expressed interest.

Der Spiegel adds that no official application for the transfer had been made, 
and cites unnamed sources in the German Defense Ministry who said they hadn’t 
heard anything more about a possible deal. Der Spiegel .

July 2/12: Switch. A statement from the the Indonesian defense ministry says 
that they’ve decided to buy Leopard Main Battle Tanks from Germany, with 
delivery to begin in October 2012. It’s part of the government’s $10.6 billion 
2010 – 2014 strategic plan to improve the armed forces., with a third of that 
sum earmarked for procurement.

Defense Deputy Minister Sjafrie Sjamsoeddin said that the decision switches the 
government’s initial plan to buy the used tanks from the Netherlands, after 
waiting several months for the Dutch parliament to approve the sale. Defense 
ministry spokesman Hartind Asrin told AFP that:

  “We had gone to the warehouse to look at them and they were good. The price 
was also right, at around $280 million…. The Dutch government was agreeable to 
the deal, but the Dutch parliament kept us waiting. There was still no approval 
after eight to nine months of waiting, so last week we called off the deal…”

See: Jakarta Globe  | China’s Xinhua . 

Dutch out, Germans in

Jan 26/12: Good buy? Army Technology reproduces  an unattributed report:

  “The Indonesian Army’s procurement plan of 100 used Leopard 2 Main Battle 
Tanks (MBTs) from the Netherlands is facing critical reviews from [Indonesian] 
Commission I legislators overseeing defence affairs from the House of 
Representatives (DPR)…. with many House Commission I officials insisting that 
the tanks are “unsuitable”… People’s Conscience Party member Susaningtyas 
Kertapati questioned the compatibility of the tanks with the country’s 
infrastructure conditions, saying that the tank weighs more than 60t and could 
be too heavy for the nations’ bridges and roads. Kertapati added: “The main 
battle tank purchase must not be decided without taking into account our 
country’s geographical landscape.”

Negotiations will reportedly continue with the Netherlands until Jan 30/12, and 
the army is reportedly studying a competing offer from the German military.


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