A Good Governance–Based Defense Procurement Model to Strengthen National Defense Industry Autonomy: A Qualitative Study from Indonesia

Abstract

Defense procurement is a strategic state function that shapes national security readiness, fiscal sustainability, and long-term technological sovereignty. Yet, defense acquisition systems are structurally exposed to integrity and performance risks due to secrecy constraints, high discretion, and complex multi-actor governance. While the literature provides extensive diagnostics on inefficiency and corruption vulnerabilities, it remains limited in offering implementable, lifecycle-embedded governance models capable of aligning procurement performance with defense industrial autonomy objectives. Addressing this gap, this study develops a good governance–based defense procurement model aimed at strengthening national defense industry autonomy, using Indonesia as an analytically relevant case of modernization pressure and persistent import dependence.

The study adopts a systems-oriented qualitative design and applies a lifecycle perspective to examine governance dynamics from planning through evaluation. Data were generated through triangulation of policy and institutional documents, semi-structured interviews with key procurement and oversight actors, and thematic analysis to identify governance bottlenecks and institutional mechanisms shaping procurement outcomes.

Findings reveal three systemic constraints: (1) fragmented institutional authority and weak cross-actor coordination; (2) significant dominance of non-technical influence over capability-based planning; and (3) partial implementation of governance principles characterized by limited traceability-oriented transparency, formal but weak accountability enforcement, and restricted structured participation beyond core institutions. These constraints generate lifecycle bottlenecks particularly in requirements formulation, vendor selection and contracting, and post-award oversight and evaluation ultimately reducing the effectiveness of technology transfer, weakening domestic supplier integration, and reinforcing a short-term acquisition orientation.

Based on these findings, the study proposes a lifecycle-embedded governance model structured around multi-actor coordination, classified accountability mechanisms, enforceable offset and technology transfer performance governance, and institutionalized evaluation feedback loops. The paper contributes theoretically by integrating good governance principles with the defense procurement lifecycle under secrecy constraints, methodologically by demonstrating a systems-based modelling approach for complex strategic sectors, and practically by providing a structured reform blueprint linking procurement governance quality to industrial autonomy outcomes. The proposed model is relevant to other emerging economies seeking to reconcile defense modernization with sustainable domestic capability development.