Enviro News Asia, Jakarta – Startups have become a driving force of the economy and a significant source of job creation. This has long been recognized by developed countries, which support startups through research funding and clearly defined market targets. Indonesia is also making strides in fostering startup growth through various funding schemes and research initiatives aimed at global sectors. One of the most promising areas for development is the military industry.
This was the conclusion of a discussion held by the Center for Technology and Innovation Studies (CTIS) on Wednesday, April 30, 2025. The event was themed “The Iron Man Model: How Startups and the Military Can Work Together.” The discussion featured Alexander Ludi, Secretary General of the Indonesia Robotics Association, with Dr. Jarot S. Suroso, M.Eng., IPU., ASEAN Eng., as the moderator.
Alexander Ludi, an alumnus of ITS-Surabaya, explained that the Artificial Intelligence (AI) ecosystem is rapidly advancing and has been embraced by startups as a promising foundation for business ventures. This AI ecosystem is penetrating all sectors, including the military, and is increasingly focused on global markets. AI is now being applied to various innovations such as drone technologies, drone applications, robotic soldiers, and more.
To build a sustainable startup ecosystem, an “Iron Man” model is needed. “In the United States, startups don’t just master the technology, but also dominate the global market. They have the ability to dive deep into the ecosystem,” said Alexander Ludi. He added that the U.S. Department of Defense allocates up to USD 3.8 billion annually to support startups in strengthening the U.S. defense industry.
In Indonesia, the startup industry has not yet produced industrial products with significant potential. Alexander pointed out that out of 50,000 startups, only 350 have received government funding—and just three of those have succeeded and grown.
“Indonesia has enormous potential,” Alexander emphasized. Indonesian human resources are technologically capable but have not yet mastered how to develop and sustain technologies in the global market. “This should be a collective concern,” he said. Military startups, in particular, present a very promising opportunity. With the support of AI, the Internet of Things, and 3D printing, startups can significantly contribute to the defense sector.
In these fields, expertise is relatively widespread across the globe. Technologies like military drones and robotic soldiers—designed to reduce the number of human troops in military operations—are emerging. Many military industrial products can also be converted for non-military use by adhering to civilian standards.
In Indonesia, the development of startups can begin with young entrepreneurs as early as their university years. The most critical moment for an aspiring entrepreneur is when they can meet with investors, supervisors, and marketing experts to pitch their ideas and continue developing them sustainably.
“The Iron Man model must be strengthened. With 70 million millennials, Indonesia needs an ecosystem that supports them in becoming entrepreneurs, by increasing the number of incubators, accelerators, and innovation spaces,” said Alexander Ludi.
He also stressed the need to synchronize startup development with bureaucracy in Indonesia, as current systems remain outdated and slow. Industrial products emerging from startup collaboration must be supported by faster, more efficient bureaucratic policies.
During his presentation, Alexander showcased a tactical vehicle developed by Indonesian experts called Garuda Patriot, which involved contributions from more than 100 startups. The vehicle is robust, but to enter mass production, it must obtain a military production feasibility certificate from the Ministry of Defense and a civilian version from the Ministry of Transportation.
Here, the government plays a vital role by strengthening the infrastructure, facilities, and human resources needed for testing at both ministries—funded through the state budget (APBN). This will enable manufacturing industries, supported by hundreds of startups, to invest, begin production, and enter the market with a high level of local content (TKDN). This approach is essential for building a stronger and more efficient domestic industry.
