One of the Defense Industries engaged in explosives is PT. Dahana (Persero) is a State-Owned Enterprise (BUMN) in the strategic industry sector that provides integrated explosive services for the Oil and Gas, General Mining, Quarry and Construction sectors as well as for Defense. PT. Dahana (Persero) history as a pioneer in this industry began with the Indonesian Air Force (AURI) project in 1966 known as the Winning Project, located in Tasikmalaya, West Java.  Then, in  1973,  it officially  became  a  PT.

Dahana (Persero) Public Company based on Government Regulation no. 36/1973 before being designated as a Limited Liability Company in 1991. PT. 

Dahana (Persero) line of business continues to grow to include: Explosives Manufacturing, Drilling & Blasting, Related Services, and Defense Related for customers throughout Indonesia and the world. PT. Dahana (Persero) goods and services are used every day by various industries in Indonesia, from the general mining sector, to metals, minerals and coal; quarry and construction sectors such as cement, asphalt and andesite quarrying; construction projects such as dams, tunnels, irrigation, demolition of old buildings, deepening of ports; oil and gas sector such as oil well casing perforation operations, seismic operations; as well as military operations. As a pioneer in the blasting industry with a trusted reputation as an explosives manufacturer and comprehensive blasting service provider, PT. Dahana (Persero) fulfills all the needs of all stages of the blasting process. In the era of being reborn, PT. Dahana (Persero) currently wants to serve the country better than before and become a partner of the government in the development of the defense industry in the country.

To develop the propellant industry in the country, it is also necessary to increase the research and development capabilities of defense technology by the defense industry. For that all require a long process and time that is carried out on an ongoing basis. Based on this understanding and background, a research was conducted on "Propellant Industry Development Policy (PT. Dahana) to Support TNI Operational Tasks" with the aim of knowing the extent to which PT. Dahana in producing its propellants.

A.           Teory Policy

Carl J Federick as quoted by Leo Agustino [1] defines policy as a series of actions/activities proposed

by a person, group or government in a particular environment where there are obstacles (difficulties) and opportunities for the implementation of such policy proposals in order to achieve certain objectives. This opinion also shows that policy ideas involve behavior that has intent and purpose is an important part of policy definitions. Solichin Abdul Wahab suggested that the term policy itself is still cross-opinion and is a debate of experts. It can understand the term policy.

According to Budi Winarno [2], the term policy term may be used widely as in "Indonesian foreign policy", "Japanese economic policy", and or it may also be used to be something more specific, such as if we say government policy on debirokartization and deregulation. However, both Solihin Abdul Wahab and Budi Winarno agreed that the term policy is often interchangeable with other terms such as program goals, decisions, laws, provisions, standards, proposals and grand designs [3]. Irfan Islamy as quoted by Suandi [4] policy should be distinguished by wisdom. Policy is translated with different policies meaning wisdom which means wisdom. The definition of wisdom requires further consideration, while the policy includes the rules contained in it. James E Anderson as quoted by Islamy [5] revealed that policy is “ a purposive course of action followed by an actor or set of actors in dealing with a problem or matter of concern” (A series of actions that have a specific purpose followed and carried out by an actor or a group of actors to solve a particular problem).

The policy concept offered by Anderson according to Budi Winarno [2] is considered more appropriate because it focuses on what is actually done and not on what is proposed or intended. In addition, this concept also distinguishes unequivocally between policies and decisions that contain the meaning of elections among various alternatives. Richard Rose as quoted by Budi Winarno also suggested that the policy should be understood as a series of slightly related activities and consequences consequences for those concerned rather than as stand-alone decisions. The opinion of the two experts can at least explain that exchanging the term policy with a decision is wrong, because it is basically a policy understood as a direction or pattern of activity and not just a decision to do something.

Based on the opinions of the above experts, it can be concluded that policies are actions or activities that are deliberately carried out or not carried out by a person, a group or government in which there is an element of decision in the form of electoral efforts among various alternatives that exist in order to achieve certain objectives and objectives.

B.           Policy of Defence Industry

RI Law number 16 of 2012 states that the Defense Industry is a national industry consisting of State-owned enterprises (BUMN) and privately-owned enterprises (BUMS) either individually or in groups determined by the government to partially or wholly produce defense equipment. and security, maintenance services to fulfill strategic interests in the field of defense and security located in the territory of the Unitary State of the Republic of Indonesia (NKRI) [6]. Therefore, an organization was formed that functions to formulate and

evaluate policies regarding the development and establishment of the KKIP (Defense Industry Policy Committee) which was later confirmed by Presidential Decree number 59 of 2013 [7]. The committee, which is led directly by the President, is tasked with determining the strategic direction of the development of the domestic defense industry. In it there are five related Cabinet Ministers, namely the Minister of Defense as the leading sector, the Minister of SOEs, the Minister of Industry, the Minister of Research and Technology and the Minister of Finance.

The existence of the defense industry law is a good development because it provides guidelines for all defense industry players. The Defense Industry Law is very strategic and fundamental to revive the defense industry. The existence of this Defense Industry Law is believed to encourage the ability to produce and develop maintenance services from the defense industry to grow. Thus, this will have an impact on the process of modernizing the defense equipment system. The main defense equipment target to be achieved is defense equipment that has high mobility and hitting power. Meanwhile, the target of the defense industry is to realize the ability to meet domestic market demand, the ability to compete in the international market and the ability to support economic growth.

C.           Development

According to the Law of the Republic of Indonesia Number 18 of 2002 Development is a scientific and technological activity aimed at utilizing proven scientific principles and theories to improve the functions, benefits, and applications of existing science and technology, or to produce new technology. Development in general means a pattern of growth, change slowly (evolution) and change gradually [8]. Development means the process of translating or elaborating design specifications into the form of physical features [9].

D.           Procurement

The procurement of goods and services or better known as auctions is mostly carried out by government agencies and the private sector. This activity is carried out to obtain goods and services by an agency/institution whose process starts from planning needs until the completion of all activities to obtain these goods and services. The following are some definitions of the procurement of goods and services. According to the Big Indonesian Dictionary, the procurement of goods and services means an offer to submit a price and buy up work for the provision of goods/services. Based on Presidential Decree No. 80 of 2003, government procurement of goods and services is an activity of procurement of goods/services financed by the APBN/APBD, either carried out independently or by providers of goods/services [10].

A.           Methods and Research Design

This research uses qualitative research methods. This research is useful for describing a complex phenomenon; it can be seen from the defense industry policy with production readiness and development at PT Dahana. The first thing that researchers need to do is to obtain data on research and development of military equipment service production at PT Dahana (Persero) by using qualitative research can by collecting. Then the researchers continued research with government policies on the development of PT Dahana (Persero). This research was conducted at PT Dahana (Persero) Online with presentations from various sources. The subjects in this study consisted of several areas of PT. Dahana (Persero) business development as well as government policies to support the Defense Industry. The object of this research is the Defense Industry and government policy on the business development of PT. Dahana (Persero). The government's MEF (Minimum Essential Force) policy greatly influences PT. Dahana (Persero) business focus.

B.           Data Collection Technique

In this study, the data obtained came from primary data sources and secondary data sources. Primary data sources are sources of data obtained directly from sources during the presentation. The secondary data source is a source of data obtained indirectly from the internet. Data collection techniques used as follows:

1)           Interview

The interview technique used in this research is in-depth interview. An in-depth interview is a way of collecting data or information by directly meeting the informant, with the aim of getting a complete picture of the topic under study. Interviews in this study were conducted with a question and answer session to the informants.

2)           Technical Documentation

Data collection using documentation is a data collection technique by collecting and analyzing documents, whether written, pictures, or electronically. Document studies are complementary to the use of observation and interview methods in qualitative research. Documents to be collected are in the form of documents related to PT Dahana, government policies related to the Defense Industry.

Currently PT Dahana (Persero) or "DAHANA" is a State-Owned Enterprise (BUMN) in the strategic industry sector that provides integrated explosives services for the General Mining, Quarry and Construction, Oil and Gas sectors as well as for Defense. Innovation is the core word for PT. Dahana (Persero) to continue to develop, both in terms of new products and more efficient processes. PT. Dahana (Persero) has successfully established Cartridge Emulsion Plant, ANFO Plant, Electric and Non-Electric Detonator Plant, Ammonium Nitrate Solution Plant, Booster Plant, Nitroglycerin Plant, Filling Bomb. PT. Dahana (Persero) also has Bonded Logistics Center (PLB), Bonded Magazine and On-site Plant (OSP) facilities and operates Mobile Manufacturing Trucks (MMT) at various mining locations.

PT. Dahana (Persero) goods and services are used by various industries in Indonesia, ranging from the general mining sector, quarrying and construction, oil and gas and defense. PT. Dahana (Persero) also placed a factory in a mine site named On Site Plant (OSP) with the support of a Mobile Manufacturing Truck (MMT) as a result of the novation to increase the effectiveness and productivity of the client's operating performance. In addition to the domestic market, PT. Dahana (Persero) products have also been exported to foreign countries such as Canada, Oman, Iran, Egypt, China, Qatar, Australia, ASEAN and others.

In addition to serving the needs of commercial explosives, PT. Dahana (Persero) also provides explosives for defense purposes and other related services with the support of the Energetic Material Center. In order to serve these needs, the production of propellants for large and small munitions, rockets, PETN and other explosives such as Blast Effect bombs, P-100L bombs, P- 250L, P-500L, Dayagel Sivor, Dayagel Military, and other explosives is currently being prepared. The R-Han 122B rocket which is part of the national rocket consortium and its rocket launch vehicle [11].

A.           Propellant Industry Capability of PT. DAHANA (Persero) in Supporting TNI Operations

Seen from the history of PT Dahana (Persero), it started with the RI Air Force rocket project in 1957 in Winning Village, Madiun, and East Java. Then the Air Force continued this project into Win 2 by establishing a dynamite factory (NG based) with the help of Hispano Suissa in 1966 at the Tasikmalaya Air Force base. Then in 1973 it was separated into a rocket program (which later became PT IPTN) and a dynamite factory, which was inaugurated as a business entity in the form of a public company within the Ministry of Defense and Security, and was given the name Dahana which comes from Sanskrit which means "fire".

PT. Dahana (Persero) produced not only to meet military needs but also commercial products, for example in collaboration with PT. Kaltim Prima Coal (KPC) since 1994. In the field of oil and gas exploitation for oil well perforating, PT. Dahana (Persero) has succeeded in meeting the needs of shaped charges products by producing their own work. the same as Chartered Oiltech Singapore (COS) which was operating in 1995. The granite quarry market in Karimun Island seized the opportunity by establishing an “On site Bulk Emulsion” factory in 1998 which was the result of the engineering work of PT. Dahana (Persero).

When viewed from the quality of the products produced, PT Dahana always relies on quality by obtaining ISO 9002:1994 in 1999. Then in 2001 it received ISO 9001:1994 continuously updating to ISO 9001:2000. Currently OHSAS 18001:2007 for Health and Safety System. ISO 14001:2004 for Environmental System and ISO 9001: 2008 for Quality System.

Currently PT. Dahana (Persero) has a high-energy material center. New products based on user needs are born from innovations carried out at the Energetic Material Center (EMC) or the Center for High Energy Materials. The presence of the Energetic Material Center in Subang with complete supporting facilities is indeed prepared to give birth to innovations in the field of high energy materials.

The development of the propellant industry is divided into two phases, namely Phase 1 of Munitions Propellant and Phase 2 of Rocket Propellant. Phase 1 has been initiated by the Ministry of Defense by building a

Nitroglycerin Plant, an Acid Plant and supporting facilities for the Propellant Industry such as Electrical Transformer Substations, Water Treatment Plants, Laboratories and Ballistic Test Facilities. Government support is needed to continue the independence of the Propellant Industry by building a Spherical Powder Factory so that Indonesia can be independent and cause a vibrating effect in the regional area.

The development of the propellant industry is also supported by the construction of the Ammonium Nitrate Factory located in the PT KIE industrial area in Bontang, East Kalimantan which is planned to operate in 2022. With a production capacity of 75,000 tons per year, of course, it will greatly assist the provision of the main weapons system equipment (Alutsista) of Indonesia.

Based on research conducted by Mayori in 2020, PT. Dahana (Persero) Manufacturing Readiness Level (MRL) in propellant development through the implementation of the spherical powder propellant plant construction program is at MRL 2 level with a percentage of 88%, which is greater than the minimum value that must be met. It is 80%, and is in the pre-decision stage of developing capabilities and material solutions [12]. The program to build a spherical powder propellant plant has only reached the initial assessment stage regarding PT. Dahana (Persero) capabilities and has not yet determined the technology provider so that it is still unable to produce spherical powder propellant. However, PT. Dahana (Persero) has the ability to identify and analyze several things needed in the manufacture of spherical powder propellant and has the facilities and infrastructure for a spherical powder propellant factory. The level of analysis of manufacturing risk elements in propellant development through the implementation of the spherical powder propellant plant development program is at MRL 2, MRL 3, and MRL 4. The level of manufacturing risk elements owned is higher than the level of manufacturing readiness, indicating that PT. Dahana (Persero) has identified the manufacturing     risk.

Pic 1. MRL Criteria Scale

Policies on the Development of the Propellant Industry of PT. Dahana (Persero) in Supporting TNI Operations

In terms of cooperation, technology transfer is needed as an effort to accelerate the absorption of technological capabilities. And until now this has been done in accordance with Law no. 16 of 2012 which requires that the TNI/ Police use domestically produced alpalhankam. If the defense industry has not yet been able to produce the defense industry, it is permissible to use foreign products, provided that the defense industry must participate, there must be transfer of technology and trade offsets, and local content and or offset of at least 85 percent. One industry builds propellant independence.

Propellant is also included in the seven national priority programs in 2014. PT. Dahana (Persero) with Eurenco and Roxel from France signed a cooperation agreement to build a propellant plant in Subang, West Java. The factory construction is divided into two stages, the first is the manufacture of nitroglycerin 200 tons/year, spherical powder (double base propellant for small caliber munitions 400 tons/year, and double base rocket propellant 80 tons/year/. The second is the manufacture of composite propellant 200 tons/year, rocket motor 8,000 rounds/year, propellant for small caliber munitions 120 tons/year and double base propellant for large caliber munitions 13 tons/year. However, the overall plan has not been fully realized until now.

The possibility to obtain the maximum technology is not easy. Several things that can hinder the absorption of technology related to propellants, one of which is the international policy, namely the Missile Technology Control Regime (MTCR), where the group of developed countries that master space technology is very protective in transferring technology to other countries. This technology transfer protection is based on its own national legislation or agreements jointly determined by countries in a certain group.

Based on Law no. 16 of 2012 Article 12, the Propellant Industry is included in the Main Component Industry, namely state-owned enterprises and/or privately- owned enterprises that produce main components and/or integrate components or spare parts with raw materials into the main components of Defense and Security Equipment Tools and/or the vehicle (platform) of the main tool system of the weapon system [13]. In supporting TNI operations, the Propellant Industry is located between the Upstream Industry (Raw Material Industry) and Downstream Industry (Armaments Industry). Until now, PT. Dahana (Persero) Manufacturing Readiness Level (MRL) in propellant development through the implementation of the spherical powder propellant plant development program is at MRL 2 level. This means that PT. Dahana (Persero) ability to produce new propellants is at the pre-decision stage of developing capabilities and solutions material. This causes the need for propellant for the Armaments Industry to be mostly met by imports.

In meeting the needs of the Armaments Industry, PT. Dahana (Persero) is trying to build the Spherical Powder Industry which is a key element for the development of the domestic propellant industry. PT. Dahana (Persero) vision in developing the Propellant Industry  can  be  seen  in  the  flow  chart  below:

Pic 2. Propellant Industry Development Stage Flowchart The   development   of  the   Spherical   Powder

Industry is very important in bringing the propellant industry development process to the final stage, namely the Double Base Propellant Industry, which is the main component of small, medium and large caliber ammunition fillers that are indispensable in TNI operations. The construction of the Spherical Powder Industry, which is planned to take place in 2022-2025, is predicted to cost Rp 2.3 trillion.

In addition to increasing the value of exports, PT. Dahana (Persero) also seeks to obtain funds through the GOCO (Government Owned Company Operated) scheme, where the government is the owner of the assets and the industry acts as the operator. This scheme means PT Dahana will operate in a government-owned factory built on government-owned land. However, PT. Dahana (Persero) as an operator contributes in addition to the process of industrial development and technology transfer as well as encouraging employment and driving the economy.

The Defense Industry Policy Committee (KKIP) ensures support for the construction of the PT Dahana (Persero) propellant factory in Subang, West Java, to support the independence of the main weapon system industry, aka defense equipment. Currently KKIP is trying to provide the best effort and of course the best solutions so that the propellant plant construction project can run well. So far, the need for propellant has been met by imports from Belgium, Korea and 

Taiwan. This of course burdens the country's foreign exchange and is prone to embargoes.

Based on the analysis, mastery of technology is also carried out internally through the research community (universities and research institutes), research institutions (government and private institutions), as well as users and the raw material industry. The government has also divided each defense industry according to its categories and capabilities according to the production capacity of the defense system. This division of capabilities includes for PT. Dahana (Persero) which is included in the lead integrators for the procurement of propellant materials. However, the ability of PT. Dahana (Persero) is currently constrained by the condition of human resources and technology that have not been able to support the effectiveness of the production of the

defense industry. PT. Dahana (Persero) itself has made several efforts to overcome this obstacle such as technology development through technology research and development, technology transfer, offset, joint development, joint venture, and joint production.

Development policy of PT. Dahana (Persero) is carried out with assistance from the government in this case the Ministry of SOEs to make PT. Dahana is a Strategic Industry that can fulfill the needs of the TNI's duties in the form of optimal propellant fulfillment. Development policy of PT. Dahana (Persero) must be directed to create a strong, independent and competitive defense industry that can support national defense and security, as well as support development. National economic growth. Also not only for financial gain, but also to support the independence of the defense industry so that it does not depend on foreign defense industries.

Conflict of Interest: No

Funding: No funding sources

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