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INTERNATIONAL JOURNAL OF SOCIAL SCIENCES

15th

November 2017. Vol.57. No.1

© 2012-2017 TIJOSS & ARF. All rights reserved

ISSN2305-4557 www.Tijoss.com

27

THE INFLUENCE OF INDONESIAN NATIONAL ARMED FORCES MAIN WEAPON

SYSTEM PROCUREMENT TOWARD NATIONAL STRATEGIC INDUSTRY’S

INDEPENDENCE IN THE FIELD OF DEFENSE

Aqlani Maza

ABSTRACT

The phenomenon used as the object of research is the National Strategic Industry’s

Independence in the field of defense. The research issue is raised with the question: how big The

Influence of Indonesian National Armed Forces main Weapon System Procurement Toward

National Strategic Industry’s independence in the field of defense; How big is The Influence of

Indonesian National Navy main Weapon System Procurement Toward National Strategic

Industry’s independence in the field of defense; How big is The Influence of Indonesian National

airforce main Weapon System Procurement Toward National Strategic Industry’s independence in

the field of defense;

The research used quantitative research approach. The sample of research as many as 351

personnel was taken from the research population of 2,884 personnel using slovin formula. Data

collection techniques used literature study, questionnaire and observation techniques. Data

analysis using Structural Equations Models Analysis. The results of the study are as follows:

The result of SEM analysis shows that The Influence of Indonesian National Armed Forces

main Weapon System Procurement Toward National Strategic Industry’s independence in the field

of defense reaches 0.83. The most dominant dimension derived from the discussion of The

Influence of Indonesian National Armed Forces main Weapon System Procurement Toward

National Strategic Industry’s independence in the field of defense is the Submission of Completed

Works dimension.

The result of SEM analysis shows that The Influence of Indonesian National Navy main

Weapon System Procurement Toward National Strategic Industry’s independence in the field of

defense reaches 0.58. The most dominant dimension derived from the discussion of The Influence

of Indonesian National Navy main Weapon System Procurement Toward National Strategic

Industry’s independence in the field of defense is the Submission of Completed Works dimension .

The result of SEM analysis shows that The Influence of Indonesian National airforce main

Weapon System Procurement Toward National Strategic Industry’s independence in the field of

defense reaches 0.58. The most dominant dimension derived from the discussion of The Influence

of Indonesian National airforce main Weapon System Procurement Toward National Strategic

Industry’s independence in the field of defense.

Keywords: Indonesian National Armed Forces, Procurement, Defense Industry

CHAPTER I

INTRODUCTION

1.1 Background of the Research

State defense is essentially one of the

important aspects in ensuring the existence

and survival of the nation and state. Strong

state defense will be able to realize a strong

nation. Strong defense development

demands the fulfillment of modern Alutsista

needs. For Indonesia, the power

development through modernization of

Alutsista is not only an option but a must.

The role of the TNI in the future is not only

as a guardian of the nation and state

sovereignty but is also required to be able to

carry out the tasks of world peace and

humanitarian tasks at regional and global

level. However, that the fulfillment of TNI

modern Alutsista needs` with the latest

technology requires a budget that is not

small. Therefore, the government

encourages the empowerment of the

http://tijoss.com/index.html

https://en.wikipedia.org/wiki/Indonesian_National_Armed_Forces













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National Defense Industry to be able to meet

TNI Alutsista needs realize the basic

strength of the TNI until 2024. (Editorial

Team, Special Edition Wira 2014: 13)

The National Defense Industry

empowerment policy appears to be aimed at

improving the ability to meet TNI Alutsista

needs to realize TNI's core strengths.

Implementation of this policy clearly

requires the support of the defense industry

that can be relied upon to meet the various

needs of TNI alustsista.

Domestic defense industry that had

collapsed in the early reform era, rebuilt in

2004 that begins with the holding of

Roundtable Discussion in the Ministry of

Defense. The Roundtable Discussion is

chaired directly by President Susilo

Bambang Yudhoyono and is intended to

revitalize the domestic defense industry. In

2010, through Presidential Regulation No.

42 of 2010, the Defense Industry Policy

Committee (KKIP) was born. The

committee, led by the President, is in charge

of determining the strategic direction of the

domestic defense industry development.

There are five related Cabinet Ministers

namely the Minister of Defense as the

leading sector, the Minister of BUMN (State

Own Enterprise), the Minister of Industry,

the Minister of Research and Technology

and the Minister of Finance. KKIP's main

task is to foster the domestic defense

industry after 1998 bankruptcy due to the

crisis. KKIP also develops master plans and

blueprints of the defense industry by

prioritizing domestic production. In

addition, KKIP is also tasked to encourage

the acceleration of TNI MEF development

for military operations with funding from

the state budget. (Editorial Team, Wira

Special Edition 2014: 14)

Thus KKIP has a strategic role in the

implementation of national strategic industry

in the field of defense and state security. The

strategic role of course requires the support

of human resources that are honest and

trustworthy and have integrity and

accountability of professional work.

The existence of KKIP is very

meaningful for PT. Dirgantara Indonesia

(DI), PT Pindad, and PT PAL, as the three

largest state-owned defense industries. KKIP

was the one who contributed to form the

revitalization masterplan of defense

industry, defense industry criteria, basic

policy of TNI and Polri Alutsista

procurement, and verification of defensive

industry capability and revitalization of SOE

(BUMN) industry defense management.

KKIP was formed to oversee the

development of domestic Alutsista` until

2029 which is divided into four stages. In

the first phase, 2010 to 2014, KKIP

launched four strategic programs, including

the establishment of a revitalization program

for the defense industry, stabilization and

optimization of the defense industry,

preparation of defense industry regulations

and future product preparation and almost

all programs have been realized. (Editorial

Team, Wira Special Edition 2014: 14)

Implementation of the defense industry

revitalization in BUMNIS is certainly

related to the policy and activities of

bureaucratic reform. The implementation of

the stabilization program and the

optimization of the defense industry is

clearly linked to increased support of

resources, particularly human resources and

financing resources. Meanwhile, the

implementation of the defense industry

regulation program requires the support of

legislative performance. By revitalizing and

optimizing the defense industry supported

by various resources, future product

preparation programs can be implemented.

In this context, Laws Number 16 of 2012

becomes very important.

In 2012, Laws no. 16 of 2012 on

Defense Industry was born. The birth of the

Defense Industry Act is a good development

because it provides a guideline for all actors.

The Defense Industry Act is very strategic

and fundamental to revive the defense

industry. The existence of this law is

believed to encourage the ability to produce

and develop maintenance services from the

growing defense industry. Thus it will have

an impact on the modernization process of

Alutsista.



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Alutsista Target to be achieved is that

Alutsista has high mobility and hit power.

The defense industry's target is to realize the

ability to meet the domestic market demand,

the ability to compete in the international

market and the ability to support economic

growth. Related to the future development of

Alutsista, KKIP has launched new futures

products program which includes fighter

aircraft, transport plane, submarine, warship,

rocket, missile, unmanned aircraft (Drone),

radar, combat management system,

communication tool, large caliber

ammunition, air bombs, torpedoes,

propellants, combat vehicles, as well as

tactical vehicles. In 2029, Indonesia's

defense industry is expected to be aligned

with the world defense industry. With the

realization of the domestic defense industry

revival, Indonesia is ready to compete with

the international market. (Editorial Team,

Wira Special Edition 2014: 14)

State Defense is one of state

government functions implemented through

the Universal Defense System which aims to

safeguard and protect the state sovereignty,

the territorial integrity of NKRI, and the

safety of the whole nation from all forms of

threat. The universal defense system always

involves all citizens, regions and other

national resources and is prepared in

advance by the government and held in total,

integrated, directed and continuous. In order

to enforce the sovereignty of the state, the

territorial integrity of the NKRI from these

threats, the government implemented a state

defense based on its vision: "The Realization

of Tough State Defense" as well as the

mission of "Maintaining the Sovereignty and

Integrity of NKRI and Nation Safety"

(Syaugi 2014: 22 )

In order to realize the vision of "The

Realization of Tough State Defense", we can

use ASOCA analysis method ASOCA .

Terminology according to Ermaya (2013:

18) which includes Abiilty (ability),

Strength (strength, toughness),

Opportunities (opportunities), Culture

(culture), and Agility (intelligence). Thus, in

order to realize the national interest, it needs

an integrated national policy between

national security policy, national economic

policy and national welfare policy.

Nevertheless, the policy of building the

TNI's strength on the MEF scale does not

mean that TNI's strength is only built

sufficiently, and just as it is. The

modernization of key equipment and

weapons systems must still be built to match

the military strengths that exist in the region.

(Syaugi, 2014: 22)

To realize a national strategic planning

system of defense and security covering all

forces of course required an integration

process of planning and comprehensive

strategy policy among all elements of

national defense and security system

organizers. For that it is expected there are

parties who are called to play an optimal

role in building the strength of the TNI.

Parties in question could be from among

BUMNIS, or it could be from the private

sector that does have the ability to support

the defense industry performance.

Therefore, a comprehensive and integrated

policy and strategic formulation is required.

It is in this context that the Comprehensive

Multidisciplinary Outline Approach (CMO)

is required to deliver a comprehensive and

reliable Blueprint for strategic defense and

state security planning.

Comprehensive national defense

policies and strategies can not be realized in

a blueprint that furthermore becomes a

reference in the organization and

development of state defense capabilities.

Similarly, the policy to empower the

domestic defense industry is still difficult to

implement because it has not been supported

by an integrated implementation policy of

various stakeholders. (Achmad Dirwan,

2011: 42)

Policies difficult implementation to

empower the domestic defense industry

could be due to several factors that become

obstacles in the policy implementation

process. The presence of brokers as well as

the presence of certain interests among

rulers and entrepreneurs in the field of

defense can also be a constraint in the

process of policy implementation to

empower the domestic defense industry



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30

While the mental attitude of high-ranking

defense officials who are happy to accept

old and old althe used alutsistas of some

countries cause the TNI weapons systems

quantity and quality become inadequate, not

in accordance with the needs, and also not in

accordance with the demands and challenges

of the strategic environment of defense.

Inadequate conditions and the number

of major weapons systems equipment

(Alutsista), facilities and infrastructure, and

professionalism, and low welfare of TNI

members are just another problem. Most of

the military equipment owned is outdated

and out of date with an average age of more

than 20 years. The 2005 data shows that the

strength of the land forces, various types of

combat vehicles of 1,766 units are only

ready 60.99 percent; various types of motor

vehicles that number reached 47,097 units,

ready only 85.04 percent; and aircraft of

various types which amounted to 61 units,

only 50.82 percent ready. The strength of the

marine dimension, warship (KRI), which is

114 units, is only 53.51 percent ready;

marine combat vehicles of various types

which amounted to 435 units, only ready

36.09 percent; and airplanes that amounted

to 54 units, only ready 31.48 percent. Then,

for air force, aircraft of various types that

number 259 units, only 48.65 percent ready,

and radar equipment as much as 16 units,

only ready 50 percent. (Achmad Dirwan,

2011: 43)

With such a vast area of land, sea, air,

quantity, quality, and operational readiness

the the alutsista numbers is very difficult to

maintain the integrity and territorial integrity

of jurisdictions optimally. In this context,

the national strategic industry independence

in the field of defense appears to be a

phenomenon that does not stand alone.

Which mean, there are a number of variables

that affect the national strategic industry

independence in the field of defense. Among

the aforementioned variables, it is assumed

that the procurement of TNI Army, Navy

and Air Force Alutsista are three variables

that have significant influence to the

national strategic industry independence in

the field of defense. This assumption is

based on the following argument:

Procurement of TNI Alutsista is a

government procurement management

executed to obtain goods by Ministries,

Institutions, Institutions whose processes

start from the planning needs until the

completion of all activities to obtain the

goods. Government procurement

management is regulated in Presidential

Regulation No. 70 of 2012 concerning

Second Amendment to Presidential

Regulation No. 54 of 2010 as amended

again to Presidential Regulation No. 172 of

2014 on Procurement of Government Goods

/ Services. Functionally, government

procurement management required by the

TNI has an effect on the national strategic

industry's independence in the field of

defense. In the context of this issue, if the

procurement of TNI Alutsista is seen as an

antecedent variable and the National

Strategic Industry Independence in the field

of defense is seen as a consequence variable,

it is reasonably suspected that among the

TNI Alutsista Procurement with National

Strategic Industry Independence established

a causality relationship.

`The assumptions and arguments put

forward may be considered logical, but not

necessarily true. Therefore it is deemed

necessary to conduct a research approach to

internalize these assumptions. To realize the

research approach, the following research

titles are chosen: ”The Influence of

Indonesian National Armed Forces main

Weapon System Procurement Toward

National Strategic Industry’s independence

in the field of defense”

1.2 Problem Formulation:

With the background description of the

problem then the research problems

formulation are raised with research

questions as follows:

1. how big The Influence of Indonesian

National Armed Forces main Weapon

System Procurement Toward National

Strategic Industry’s independence in the

field of defense?






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National navy main Weapon System

Procurement Toward National Strategic

Industry’s independence in the field of

defense?


National airforces main Weapon System



defense?

1.3 Research Objectives

With these research questions set

the objectives of the research as follows:

1. Analyzing The Influence of Indonesian




field of defense?


National navy main Weapon System



defense


National airforces main Weapon System



defense?

1.4 Practical Benefits

The practical benefit for researchers

obtained through the research process is that

all research activities and research results

can broaden the understanding and

strengthen the application of disciplines of

Governmental Science. The practical benefit

for the parties studied is that the results of

research can be used as input to improve and

expand efforts to realize the national

strategic industry independence in the field

of defense. The practical benefit for

universities is that the results of research are

deemed to be academic documents that

enrich the scope of science and useful to be

a reference study for students who are

concentrated on similar research objects.

1.5 Theoretical benefits

The results of the study are

expected to enrich the object of

Governmental Science application.

Moreover, the research results are also

expected to be used as a reference study by

other researchers to develop broader and

more extensive research concepts of national

strategic industry independence in the field

of defense.

CHAPTER II

THEORITICAL REVIEW

2.1 Literature review

The literature review includes

description of Government Science Grand

Theory, Middle Range Theory of Public

Policy Theory, and Applied Theory which

consists of Procurement Theory of Goods

and Services, and Defense Industry

Independence Theory. Theoretical study

results for each variable are as follows:

2.1.1 Procurement Theory

The position of goods / services

procurement is not always the same for each

type of goods / services procurement. Some

positions / positions of goods / services

procurement, according to Djoko Luknanto

(2006) are as follows:

Picture 2.1

Procurement Position In Development Implementation

Planning (Planning)

Programming (Programming)

Budgeting (Budgeting)

Procurement (Procurement)

Contract Implementation and Payment (Contract

Implementation and Payment)

Completed Works Submission

Pemanfaatan dan Pemeliharaan (Operation and Maintenance)













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Sources : Djoko Luknanto 2006

Picture 2.1 shows that procurement

activities includes (1) Planning (Planning);

(2) Programming (Programming); (3)

Budgeting (Budgeting); (4) Procurement

(Procurement); (5) Contract Implementation

and Payment (Contract Implementation and

Payment); (6) Completed Works

Submission; and (7) Operation and

Maintenance (Operation and Maintenance).

This opinion certainly applies also in the

TNI Alutsista procurement.

According to Suwanda (2013: 109) A

transparent, accurate, professional and

accountable TNI alutsista asset management

system seems unmistakable as one of the

TNI's managerial needs in managing

organizational resources.

According to Prihadi (2011: 115),

along time, the market experienced

dynamics that result in changes in market

prices of each item. The market has its own

mechanism in determining the price. At the

same time the assets that have been

purchased are aging.

These two facts make valuation of an

asset valuation an important issue. This

important issue must be a reference and

consideration in applying an management

system asset, including TNI Alutsista Asset

Management. Therefore, the TNI needs to

develop an asset management paradigm.

In addition, regarding the principle

of asset management, Suwanda (2013: 116-

117) explains that the following principles

of asset management or regional property

are:

a. Functional Principle:

Decision-making and problem-

solving in the field of local

property management

exercised by the power of

users, users, managers and

heads of regions shall be in

accordance with their

respective functions of

authority and responsibility..

b. Legal Certainty Principle: The

management of regional

property must be carried out in

accordance with laws and

regulations.

c. Transparency Principle:

Provision of regional property

must be transparent to the right

of the people to obtain correct

information.

d. Efficiency Principle: The

management of regional

property is directed to ensure

that local property can be used

in accordance with the

standard constraints of the

need to support the

implementation of the

government main tasks and

functions optimally.

e. Accountability Principle:

Every activity of the regional

goods management must be

accountable to the people.

f. Value Assurance Principle:

The management of regional

property must be supported by

the accuracy of the quantity

and value of goods in order to

optimize the utilization and

transfer of regional property as

well as the preparation of the

government balance sheet.

Implementation of such asset

management principles also refers to the

physical life cycle of an asset or group.

According to Hidayat (2012: 18):

In public organizations, the physical

life cycle of an asset or asset group

has three distinct phases, namely

acquisition, operation, and disposal.

Then the fourth phase is added, that

is planning, which is an advanced

process in which the output

information of each phase is used as

input for planning.

On the other hand, asset management

strategically covers every organizational

function that works together to achieve

organizational functions that work together

to achieve one goal. Operations and

maintenance are assessed based on the

production capability and capacity



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utilization of each unit. Asset purchasing

have the primary objective to support

operational reliability, the main objective to

support operational reliability, while still

considering costs as important, but as a

secondary objective. Engineering is based

on the total value of the life cycle that

occurs, including product characteristics,

maintainability, operability, and total cost

per unit output. (Hidayat, 2012: 11)

From the description of the

government goods / services procurement

theory and asset management presented by

the author chose the procurement of goods /

services theory from Djoko Luknanto (2006)

which says that the procurement includes

activities (1) Planning (2) Programming; (3)

Budgeting; (4) Procurement; (5) Contract

Implementation and Payment; (6)

Completed Works Submission; and (7)

Operation and Maintenance, as the

theoretical foundation of the TNI Alutsista

operational concepts compilation

Procurement variables.

Based on the theory, the definition of

the conceptual variables that the

procurement of TNI Alutsista is a series

of activities to meet the needs of TNI

Alutsistas which includes Alutsista

Planning; Programming; Budgeting;

Procurement; Implementation of

Contracts and Payments; Completed

Works Submission; Utilization and

Maintenance. From the conceptual

definition of the variables are derived seven

dimensions of analysis: (1) Alutsista Needs

Planning Dimensions; (2) Alutsista

Programming Dimensions; (3) Alutsista

Budgeting Dimensions; (4) Alutsista

Procurement Dimensions, (5) Alutsista

Contract Implementation and Payment

Dimensions; (6) Alutsista Works Completed

Submission Dimension; and (7) Alutsista

Utilization and Maintenance Dimensions.

Seven dimensions of the analysis were

operationalized into 21 manifest variables to

be used as 21 items of research

questionnaires.

2.1.2 Strategic Industry Independence

Theory

Defense Industry is a national

industry comprising state-owned and

privately-owned enterprises either

individually or in groups established by the

government to partly or wholly produce

defense and security equipment,

maintenance services to fulfill strategic

interests in the field of defense and security

which are located in the territory of the

Unitary State of the Republic of Indonesia.

Defense and Security Equipment are all

tools to support state defense and security

and public order. (Article 1 of Law No.16 /

2012)

The operation of Defense Industry is

carried out on the Principles of: a)

.Priorities; b). alignment; c). continuous; d).

effective and efficient justice; e).

accountability; f). visionary; g). prime; h).

professional; i). quality; j). secrecy; k). on

time; l). right on target; m). appropriate; n).

national human resources empowerment;

and o). independence. (Article 2 of Law

No.16 / 2012)

In this case, the aims of Defense

Industry organization: a). establishing a

professional, effective, efficient, integrated,

and innovative Defense Industry; b).

realizing the independence of the Defense

and Security Equipments Toolkit; and c).

improve the ability to produce Defense and

Security Equipment Tools, maintenance

services to be used in order to build a

reliable defense and security force. (Article

3 of Law No.16 / 2012)

Talking about the independence of

the national strategic industry is certainly

related to the independence of the defense

industry. According to Widjajanto (2012: 1),

the development of defense industry in East

Asian countries shows three major models

of defense industry: self-reliance, niche

production, and global logistics chain model.

The model of independence is

applied by a country that is ambitious to get

defense independence. The independence of

this defense is measured by (1) the capacity

of the state to master the military technology



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needed to make weapons systems, (2) the

national financial capacity to finance the

production of weapons systems, and (3) the

capacity of the national industry to produce

weapons systems in the country. This model

will be achieved if a country is able to have

at least 70 percent of the technology,

financial and weapon system capacity. To

achieve defense independence, a country

must develop a long-term strategic defense

plan. Such long-term commitment, for

example, is apparent from China's plan to

project itself into a hegemonic power by

2050. (Widjajanto, 2012: 1)

From the description of the defense

industry strategic independence theory

selected model of defense industry

independence proposed by Widjajanto

(2012: 1). The independence of this defense

is measured by (1) the capacity of the state

to master the military technology needed to

make weapons systems, (2) the national

financial capacity to finance the production

of weapons systems, and (3) the capacity of

the national industry to produce weapons

systems in the country..

Based on the defense independence

model and ASOCA theories devised a

variable conceptual definition that the

National Defense Strategic Industry

Independence is the independence of the

military defense industry which is expressed

by the capacity of the state to master the

military technology needed to create

weapons systems, the national financial

capacity to finance the production of

weapons systems, national industry to

produce weapons systems in the country for

the establishment of national strategic

industry independence which includes

Abiilty (ability); Strength (strength);

Opportunities (opportunities); Culture

(culture) and Agility (intelligence) in

optimizing the performance of state defense

and security.

Based on the exposure of theories

used as a reference of understanding the

research variables concept can be arranged

mind Framework with the following picture:

Picture

Mind Framework

TNI armed forces alutista

procurement

NATIONAL

INDUSTRY

STRATEGIC

INDEPENDENCE

NAVY alutista procurement

Airforces alutista

procurement

Procurement Theory

NATIONAL

INDUSTRY

STRATEGIC

INDEPENDENCE AND ASOCA THEORY



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35

Based on the pictured mind frame

work further submitted following

theoretical hypothesis :

1. The Influence of Indonesian National

Armed Forces main Weapon System



defense dimensions is determined by t

Alutsista Planning; Programming,

Budgeting; Procurement;

Implementation of Contract and

Payment; Works Completed

Submission; Utilization and

Maintenance.

2. The Influence of ndonesian National

Navy main Weapon System









Maintenance.

3. The Influence of ndonesian National

Airforces main Weapon System









Maintenance.

CHAPTER III

RESEARCH METHODS

3.1 Research Design The design uses a quantitative

research approach. This quantitative

research approach is implemented by SEM

Analysis method. This research is included

in the paradigm of positivism. Furthermore,

the quantitative research approach is carried

out with the positivist paradigm. Thus the

research design can be presented with the

following

Picture

Research Design

The research design presented is a

statistical measurement model that can be

explained as follows:

1. 1 (Ksi) is an exogenous latent variable

of TNI Armed forces Alutsista

Procurement which hypothesized

influential to endogenous latent

variable.


of TNI Navy Alutsista Procurement

which hypothesized influential to

endogenous latent variable.


of TNI Air Force Alutsista Procurement

which hypothesized influential to


4. (Eta) is the endogenous latent

variable of National Strategic Industry

Independence affected by the three

exogenous latent variables.

5. (Zeta) is the coefficient determination

measurement which will show the

contribution of the influence of other

factors to the endogenous latent

variable.

2

1

3

1

1 2





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36

6. 1 (Gamma) is the exogenous latent

variables coefficient path of TNI

Armed forces Alutsista Procurement

with National Strategic Industry

Independence endogenous latent

variable.


variables coefficient path of TNI Navy

Alutsista Procurement with National

Strategic Industry Independence



variables coefficient path of TNI

Airforces Alutsista Procurement with

National Strategic Industry

Independence endogenous latent

variable.

3.2 Population and Sample Research

The sample is a partial or

representation of the population that is the

subject of the study. The sample was taken

with the consideration that the population is

difficult to be involved as a whole. The

sampling size also considers the method of

data analysis used. In this study, the

determination of samples using slovin

formula which then obtained the number of

samples as many as 351 of 2884 population.

3.3 Data Collection Techniques

Secondary data collection from

various books, documents and formal

information using Library Studies. Primary

data collection from research sample using

Questionnaire and Observation Technique.

Preparation of questionnaires using Likert

Scale.

3.4 Data Analysis Techniques

Pengolahan dan analisis data

menggunakan Analisis SEM (Structural

Equation Models). Praktek Analisis

mencakup tahap-tahap berikut :

Processing and data analysis using

SEM (Structural Equation Models)

Analysis. The Practice of Analysis includes

the following stages:

1. Model specification: The practice of this

stage is to construct the Theoretical

Hypothesis, which is the hypothesis

expressed by including the analytical

dimensions of a particular theory.

2. identification : Practice in this stage is to

arrange SEM hypothesis developed from

theoretical Hypothesis by preparing the

structure of the statement Hypothesis

based on manifest variables developed

from each analysis dimensions.

Identification is also shown to create a

Line Chart drawing.

3. estimation : The practice of this stage is

to formulate the statistical formula of

structural equation for each

measurement.

4. testing fit : Practice in this stage is to

perform the match theory used as a

theoretical basis of variables operational

concepts preparation or research models

with characteristics and characteristics of

the phenomenon used as research

objects.

5. respecification. Practice in this stage is

done if the match test results do not

meet some of the criteria of the fit test

(Goodness of Fit) is.



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CHAPTER IV

RESULTS AND DISCUSSION

SEM Analysis result consists of

Match Test Result. Validity Test Instrument

Result, Test Reliability Test Result, First

Hypothesis Test Result and Second

Hypothesis Test Result

3.1 Match Test Results

The overall model fit (overall

model fit) is a matching test aimed at

evaluating the general fit degree or

Goodness Of Fit (GOF). Goodness of fit test

conducted to determine whether the obtained

model has been appropriate in describing the

relationship between the variables being

studied so that it can be categorized into a

good model. The result of Goodness of Fit

model analysis can be explained that most

Goodness Of Fit (GOF) components have a

value above marginal 0.80. This means that

the model in this research is suitable or

acceptable. Suitable in the sense that the

theory used as the theoretical foundation of

variable operational concept preparation or

research model is suitable to reveal the

characteristics and characteristics of the

phenomenon used as research objects. The

implication is that the theory further

deserves to be the theoretical basis for new

concepts preparation or the results of the

theory development.

3.2 Validity Test Instrument Results

The reliability coefficients in each manifest

variable indicate the reliability of the

questionnaire. The reliability test results also

provide indication that the reliability of the

questionnaire used as a measuring tool for

exogenous and endogenous latent variables

also includes high correlation and

acceptability. The validity Test to determine

the validity of each manifest variable. Valid

or valid means that the manifest variable

used as a research instrument deserves to be

considered effective to reveal the things

constructed in each latent variable by

fulfilling the requirements of the loading

factor of 0,70 and the value of t-value

1,96. The validity or validity of a manifest

variable can be evaluated by the significance

level of the influence between a latent

variable and its manifest variable. In this

case, a manifest variable is said to have a

valid value of the construct or latent

variable, if: (a) The loading value factor

(loading factor) is greater than the critical

value (> 1,96 or practically> 2); and (b) The

standardized factor loading is greater than

or equal to 0.70. Based on the standardized

loading factor output it is known that the

standardized loading value result of all

manifest variables of the latent variable

constructs proves to be valid, since the

validity value is greater than the test

criterion that is 0.70. Thus, it can be stated

that all manifest variables have a strong

relationship with their variable constructs.

While for the T-Values value each manifest

variable proved to give statistically

significant relationship to its construct

because it is above the critical value 1.96 (≥

1.96). Furthermore it can be concluded that

each item questionnaire can be declared

effective to explore things that are composed

on the construct of endogenous and

exogenous latent variables, because each

item questionnaire is easy to understand and

easily answered by the respondents who

become the research sample. Therefore, data

analysis can proceed to the next stage.

3.3 Test Reliability Test Results

The reliability test is performed by

looking at the value of for the exogenous

latent variable and for the endogenous

latent variable. Reliability testing indicates

the extent to which a measuring instrument

can give same relatively results when a back

measurement is done on the same object. In

LISREL testing can be done by looking at

the construct reliability value (CR) and

variance extracted value (VE). Where in

testing of construct reliability (CR) the

minimum reliability value of manifest

variable or indicator of acceptable latent

variable is 0.70 while for variance extracted

value (VE) is 0,50. Construct Reliability

values to see the consistency of a



15th




38

measurement, and the VarianceExtracted

value is to reflect the total number of

variants in the indicators described by the

latent variable.

From result of reliability test of

construct reliability and variance extract

each latent variable show reliable test result.

This reliability can be seen in the value of

construct reliability (CR) greater than 0.70

(Source: Wijanto, 2008: 66) and the value of

variance extracted (VE) is also greater than

0.50 (Source: Wijanto, 2008: 66). Thus it

can be stated that structured manifest

variables in endogenous latent variables and

exogenous latent variables can be expressed

reliably at the level of latent variables.

Reliable in question is that all manifest

variables arranged in the Research

Instrument (questionnaire) can be

considered reliable or reliable to explore

things that are structured into constructs of

exogenous latent variables and endogenous

latent variables. Reliable can also be

interpreted that the instrument made does

not result in a much different interpretation

although the data source receiving the

instrument consists of different elements.



15th




39

Results of First Hypothesis Testing The influence of exogenous latent

variables Structural Measurement on the




in the field of defense

Table of SEM Computing Results with

Lisrel Summary

Equation of Structural Model

Influence of Indonesian National Armed

Forces main Weapon System Procurement

Toward National Strategic Industry’s

independence in the field of defense

Structural Equations Path Coefficient

(standardized) R

2

Endogen Latent

Variable Exogenous Latent Variables

National Strategic

Industry’s independence


Indonesian National Armed Forces

main Weapon System

Procurement

0,83 0,68

Other Variables 0,32

Goodnes Test of structural model

equations can be seen from the value of Q2

as below:

Q2 =1-(1-R

2) =1-(1-0,68) = 0,68

The table above shows the results of

structural equations measurement with the

following explanation:

1. The high effect of the Indonesian


System Procurement exogenous latent

variables Toward National Strategic


defense endogenous latent variables 0.83.

The high effect of the Indonesian



variables Toward National Strategic


defense endogenous latent variable is

determined by Alutsista Planning;

Programming Alutsista, Budgeting

Alutsistas; Procurement of Alutsistas;

Implementation of Contract and Payment

of Alutsista; Submission of Alutsista

Works Completed; Utilization and

Maintenance of Alutsista.

2. Influence Indonesian National Armed

Forces main Weapon System

Procurement exogenous latent variables

Contribution Toward National Strategic


defense endogenous latent variables is

big. This is revealed from the large

determination coefficient measurement

which shows R2 = 0.68 The rest of 0.32

is the contribution of other latent

variables (tetha epsilon). Other latent

variables in question are other variables

that are also assumed to affect National


field of defense as mentioned in the

Identification Problem Research Section

but other variables are not examined.

To know the significance effect of

the Indonesian National Armed Forces main

Weapon System Procurement exogenous

latent variables to National Strategic



conducted through hypothesis testing with t-

value statistic test(ttabel). Hypothesis testing

was conducted to find out whether there is

sufficient evidence to state that the

population of Indonesian National Armed

Forces main Weapon System Procurement

exogenous latent variables to National


field of defense endogenous latent variables.

Summary of statistical computation of SEM

with Lisrel equation of structural model "t-

value value (ttabel)” for hypothesis testing is

known that tcount is bigger than critical

value of significance equal to 1,96 (Source:

Wijanto, 2008: 65). This means that


Weapon System Procurement has a

significant effect on National Strategic

















15th




40


defense.

Research Findings in quantitative

research using SEM Analysis approach is

obtained from the results of Confirmatory

Factor Analysis. Confirmatory Factor

Analysis Results on each dimension of the

study in measuring the high influence of

Indonesian National Airforces main Weapon

System Procurement to National Strategic


defense which indicates that the Dimension

of Completed Works Submission is the most

dominant factor in the influence of


Weapon System Procurement to National


field of defense. In a quantitative study

using SEM analysis, this CFA result is seen

as a Research Finding.

3.4 Results of Second Hypothesis Testing

The influence of exogenous latent


Indonesian National Navy main Weapon



field of defense.

Table of SEM Computing Results with

Lisrel Summary

Equation of Structural Model

Influence of Indonesian National Navy main





(standardized) R

2

Endogen Latent

Variable Endogen Latent Variable

National Strategic



Indonesian National Navy main

Weapon System Procurement 0,58

0,33




as below:

Q2 =1-(1-R

2) =1-(1-0,33) = 0,33





National Navy main Weapon System




endogenous latent variables 0.58. The

high effect of the Indonesian National

Navy main Weapon System Procurement

exogenous latent variables Toward

National Strategic Industry’s


endogenous latent variable is determined

by Alutsista Planning; Programming

Alutsista, Budgeting Alutsistas;

Procurement of Alutsistas;





2. Influence Indonesian National Navy main


latent variables Contribution Toward



endogenous latent variables is revealed

from the large determination coefficient

measurement which shows R2

= 0,33 The

rest of 0.67 is the contribution of other

latent variables (tetha epsilon). Other

latent variables in question are other

variables that are also assumed to affect


independence in the field of defense as

mentioned in the Identification Problem

Research sub Section but other variables

are not examined.


the Indonesian National Navy main Weapon















15th




41

variables to National Strategic Industry’s


endogenous latent variables is conducted

through hypothesis testing with t-value

statistic test(ttabel). Hypothesis testing was

conducted to find out whether there is


population of Indonesian National Navy

main Weapon System Procurement











System Procurement has a significant effect

on National Strategic Industry’s

independence in the field of defense.
















defense. In a quantitative study using SEM

analysis, this CFA result is seen as a

Research Finding.







15th




42

3.5 Results of Third Hypothesis Testing

The influence of exogenous latent


Indonesian National Airforces main Weapon



field of defense

Table of SEM Computing Results with Lisrel Summary

Equation of Structural Model Influence of Indonesian National Airforces main Weapon System

Procurement Toward National Strategic Industry’s


(standardized) R

2

Endogen Latent

Variable Endogen Latent Variable

National Strategic



Indonesian National Airforces

main Weapon System

Procurement

0,58 0,33




as below:

Q2 =1-(1-R

2) =1-(1-0,33) = 0,33





National Airforces main Weapon System




endogenous latent variables 0.58. The

high effect of the Indonesian National

Airforces main Weapon System




endogenous latent variable is determined

by Alutsista Planning; Programming

Alutsista, Budgeting Alutsistas;

Procurement of Alutsistas;





2. Influence Indonesian National Airforces


exogenous latent variables Contribution



endogenous latent variables is revealed

from the large determination coefficient

measurement which shows R2

= 0,33 The

rest of 0.77 is the contribution of other

latent variables (tetha epsilon). Other

latent variables in question are other

variables that are also assumed to affect


independence in the field of defense as

mentioned in the Identification Problem

Research sub Section but other variables

are not examined


the Indonesian National airforce main


latent variables to National Strategic



conducted through hypothesis testing with t-

value statistic test(ttabel). Hypothesis testing

was conducted to find out whether there is


population of Indonesian National airforce











Indonesian National airforce main Weapon

System Procurement has a significant effect














15th




43

on National Strategic Industry’s








IIndonesian National airforce main Weapon






Indonesian National airforce main Weapon



defense. In a quantitative study using SEM

analysis, this CFA result is seen as a

Research Finding.

CHAPTER V

CONCLUSIONS AND

RECOMMENDATIONS

The conclusions can be drawn from the

discussion of research results are as follows:

1. The size of the influence of Indonesian




field of defense reaches 0.83, is very

strong and can be interpreted as a

positive and significant influence. The

amount of this influence is determined

by the Planning of Alutsista Needs;

Alutsista Programming; Alutsista

Budgeting; Alutsista Procurement;

Alutsista Implementation of Contract and

Payment; Alutsista Works Completed

Submission; Alutsista Utilization and

Maintenance. The existence of influence

shows that among Indonesian National

Armed Forces main Weapon System

Procurement which is seen as antecedent

variable (with precedence, cause) with



which is seen as a consequence variable

(phenomenon, effect) is established a

causality relationship. This causality

relationship means that if Indonesian


System Procurement is increased or

increased then the increase is stimulant

followed by the increase of National


field of defense. Thus it can be stated

that Indonesian National Armed Forces

main Weapon System Procurement is

one of the factors causing the rise and

fall of National Strategic Industry’s


Therefore, National Strategic Industry’s

independence in the field of defense can

be done by increasing Indonesian


System Procurement.

The most dominant dimension derived

from the discussion of the influence of




independence in the field of defense is

the dimension of Completed Works

Submission which is the stage of

Alutsista handover completed by a third

party or the provider of goods to the user

of the goods or the Army conducted

accordingly with procedure of delivery,

technical submission and delivery time

of Alutsista agreed by both parties.

2. The amount of influence of of




field of defense reaches reaches 0.58, is

quite strong and can be interpreted as a

positive and significant influence. The

amount of this influence is determined

by the Planning of Needs Alutsista;

Alutsista Programming; Budgeting

Alutsista; Procurement of Alutsista;




Maintenance of Alutsista. The existence

of influence shows that among

















15th




44

System Procurement which is seen as an

antecedent variable with National


field of defense which is seen as a

consequence variable is established a

causality relationship. This causality

relationship means that if Indonesian


Procurement is improved or increased

then the increase is stimulant followed

by the increase of National Strategic


defense. Thus it can be stated that the


System Procurement is one of the factors

causing the rise and fall National


field of defense. Therefore, the increase

of National Strategic Industry’s


be done by increasing Indonesian


Procurement






field of defense is the dimension of

Completed Works Submission which is

the stage of Alutsista handover

completed by a third party or the

provider of goods to the user of the

goods or the Army conducted

accordingly with procedure of delivery,

technical submission and delivery time

of Alutsista agreed by both parties.

3. The amount of influence of of

Indonesian National airforce main




reaches reaches 0.58, is quite strong and

can be interpreted as a positive and

significant influence. The amount of this

influence is determined by the Planning

of Needs Alutsista; Alutsista

Programming; Budgeting Alutsista;

Procurement of Alutsista;




Maintenance of Alutsista. The existence

of influence shows that among


Weapon System Procurement which is

seen as an antecedent variable with



which is seen as a consequence variable

is established a causality relationship.

This causality relationship means that if

airforce main Weapon System

Procurement is improved or increased

then the increase is stimulant followed

by the increase of National Strategic


defense. Thus it can be stated that the

airforce main Weapon System

Procurement is one of the factors causing

the rise and fall National Strategic


defense. Therefore, the increase of



be done by increasing airforce main

Weapon System Procurement






independence in the field of defense is is

the dimension of National airforce main

Weapon System Procurement Planning is

Indonesian National airforce technical

operational requirement planning as

shown by type planning and

standardization of main Weapon System

Unit, units and equipment of the Unit;

planning of amount and details of budget

allocation of equipment procurement;

procedure planning, technical and time

of tools procurement; and cooperation

planning related to user training and use

of Alutsista, transfer of technology and

development, maintenance and guarantee

of cooperation of the parties, based on

the result of Alutsista condition analysis.



15th




45

Suggestions that can be submitted based on

the conclusions presented are the following:

Practical Suggestions: Practical suggestions

are communicated to the Minister of

Defense and the TNI Commander and Chief

of armed force Staff as follows:

1. It is suggested to the Minister of

Defense, TNI Commander and Chief of

the armed force Staff to increase,

expand, improve and optimize the

procurement of Indonesian National

Armed Forces Alutsista procurement

through Alutsista procurement

management in the form of: (1)

Planning of Alutsista procurement consist of:, a) alutsista condition

analysis b) Alutsista Needs Analysis, c)

Alutsista Needs Planning Strategy; (2)

Alutsista programming consists of: a)

Short Term Algorithm Procurement

Program, b) Medium Term

Procurement Procurement Program, c)

Long Term Alutsista Procurement

Program; (3) Alutsista Budgetary

consist of: a) Alutsista Budget

Allocation amount, b) Alutsista Budget

Allocation Function, c) Alutsista

Budget Performance Indicator; (4)

Alutsista procurement consists of: a)

Alutsista procurement Administration,

b) Alutsista Procurement Principles, c)

Alutsista Procurement Stages; (5) The

execution of alutsista contract and

payment consist of: a) Procurement

Contract Engagement, b)

Implementation of Procurement

Contract, c) Payment of Procurement

Package; (6) alutsista completed work

submission consists of: a) Delivery

procedure, b) Technical Submission, c)

Delivery Time; (7) alutsista Utilization

and maintenance consist of: a)

Utilization and Maintenance Policy, b)

Utilization and Maintenance Activities,

and c) Utilization and Maintenance

Accountability.



the Navy Staff to increase, expand,

improve and optimize the procurement

of Indonesian National Navy Alutsista

procurement through Alutsista

procurement management in the form

of: (1) Planning of Alutsista

procurement consist of:, a) alutsista

condition analysis b) Alutsista Needs

Analysis, c) Alutsista Needs Planning

Strategy; (2) Alutsista programming

consists of: a) Short Term Algorithm

Procurement Program, b) Medium

Term Procurement Procurement

Program, c) Long Term Alutsista

Procurement Program; (3) Alutsista

Budgetary consist of: a) Alutsista

Budget Allocation amount, b) Alutsista

Budget Allocation Function, c)

Alutsista Budget Performance

Indicator; (4) Alutsista procurement

consists of: a) Alutsista procurement

Administration, b) Alutsista

Procurement Principles, c) Alutsista

Procurement Stages; (5) The execution

of alutsista contract and payment

consist of: a) Procurement Contract

Engagement, b) Implementation of

Procurement Contract, c) Payment of

Procurement Package; (6) alutsista

completed work submission consists

of: a) Delivery procedure, b) Technical

Submission, c) Delivery Time; (7)

alutsista Utilization and maintenance consist of: a) Utilization and

Maintenance Policy, b) Utilization and

Maintenance Activities, and c)

Utilization and Maintenance

Accountability.



the Airforce Staff to increase, expand,

improve and optimize the procurement

of Indonesian National Airforce

Alutsista procurement through Alutsista

procurement management in the form

of: (1) Planning of Alutsista

procurement consist of:, a) alutsista

condition analysis b) Alutsista Needs

Analysis, c) Alutsista Needs Planning

Strategy; (2) Alutsista programming

consists of: a) Short Term Algorithm

Procurement Program, b) Medium

Term Procurement Procurement







15th




46

Program, c) Long Term Alutsista

Procurement Program; (3) Alutsista

Budgetary consist of: a) Alutsista

Budget Allocation amount, b) Alutsista

Budget Allocation Function, c)

Alutsista Budget Performance

Indicator; (4) Alutsista procurement

consists of: a) Alutsista procurement

Administration, b) Alutsista

Procurement Principles, c) Alutsista

Procurement Stages; (5) The execution

of alutsista contract and payment

consist of: a) Procurement Contract

Engagement, b) Implementation of

Procurement Contract, c) Payment of

Procurement Package; (6) alutsista

completed work submission consists

of: a) Delivery procedure, b) Technical

Submission, c) Delivery Time; (7)

alutsista Utilization and maintenance consist of: a) Utilization and

Maintenance Policy, b) Utilization and

Maintenance Activities, and c)

Utilization and Maintenance

Accountability.

Theoretical Suggestion: It is suggested to

the academic community, especially to

researchers who choose the same or similar

research object, in order to be pleased to

develop the findings of the most dominant

dimension derived from the discussion of

research results. The three most dominant

dimensions derived from the discussion of

research results are as follows:

1. Dimension of Completed Works

Submission as concept of Alutsista

delivery stage completed by third party

or provider of goods to the user of goods

or Indonesia National Armed forces

conducted in accordance with the

procedure of Alutsista delivery, technical

submission and delivery time agreed by

both parties.

2. Dimension of Completed Works

Submission as concept of Alutsista

delivery stage completed by third party

or provider of goods to the user of goods

or Indonesia National Navy forces

conducted in accordance with the

procedure of Alutsista delivery, technical

submission and delivery time agreed by

both parties.

3. Dimension of Alutsista Needs Planning

of Indonesian National Airforce which is

conceptualized as a technical operational

needs planning of Indonesian National

Airforce unit shown: (1) planning of

type and standardization of Main Unit of

Weapon Unit System, Unit Support and

Unit Equipment Unit; (2) planning of

amount and details of budget allocation

of equipment procurement; (3)

procedural planning, technical and time

of tools procurement; and (4)

cooperation planning related to user

training and use of Alutsista, technology

transfer and development, maintenance

and cooperation guarantee of the parties,

based on the result of alutsista condition

analysis, alutsista needs analysis, and

alutsista need planning strategy.

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