South African defence and aerospace company Paramount Group and Indonesian state-owned defence company PT Pindad have signed a memorandum of understanding (MoU) for the development, industrialisation and joint marketing of armoured vehicle systems for the Indonesian Armed Forces.

The agreement was signed during the biennial defence expo Defence & Security 2019 held in Bangkok, Thailand.

Under the MoU, Paramount Group and Pindad will take up the development, local industrialisation and joint marketing of next-generation armoured vehicle systems to meet the requirements of the Indonesian Armed Forces.

Paramount Group senior vice-president Eric Ichikowitz said: “Indonesia is a regional powerhouse with strategic importance for stability and economic growth in South East Asia. We are pleased to partner with PT Pindad, the state-owned company with heritage of more than 200 years.

“There are excellent synergies between our respective organisations laying the foundation for innovation, technology development and the bolstering of local defence capabilities.

“Building defence industrial eco-systems through strategic alliances have been the cornerstone of Paramount’s portable manufacturing model and we are excited to develop our armoured vehicle systems technologies and solutions through strong and long-term partnerships.”

In addition to strengthening local land systems capability and creating new jobs, the agreement is expected to facilitate domestic manufacturing through the transfer of technology and skills.

Ichikowitz said: “We are looking forward to the application of our world-leading design and engineering expertise to develop and produce a range of armoured vehicle systems that is specifically designed to meet the requirements of local end-users, including internal security and defence forces.”

PT Pindad president director Abraham Mose said: “We hope the cooperation with Paramount Group may allow us to develop more defence products together, specifically in the field of armoured vehicles, which will bring mutual benefits for both companies.”

Established in 1994, Paramount Group works with governments across five continents and manufacturing in Africa, Asia and the Middle East.