Triangulation

Because both quantitative and qualitative data will be required, a combination of research strategies and methods is necessary. Triangulation is defined as

“mixing of data or methods so that diverse viewpoints or standpoints cast light upon a topic... to help in validating ...” 67

In this research, triangulation is used primarily to ensure that as much data can be gathered to complement the lack of data when only one method is used. Three methods and strategies will be used in this research: secondary data, survey, and case study.

Figure 1.3 Research Design

Source: Author

Type of Data

There are two kinds of data needed for the study: primary and secondary. Secondary literature - documents, statistics, policy documents - can be obtained from national archives, government websites, industry websites, and so on. Primary data were collected through a survey, in the form of questionnaires, interviews and case

studies. Group discussion will also be used to discuss and find the deeper meaning behind questionnaire data.

Time Horizon

In terms of time horizon, a longitudinal study was employed as it was not sufficient to study different periodisation by using cross-sectional approach. The reason for this was the need to capture the dynamics of offset implementation during 1986- 2014, spanning across the three periods when the strategic industries were in a state of development (1988-1998), survival (1999-2009), and revitalisation (2010-2014). Hereafter, these periods have been termed Stage One, Stage Two and Stage Three, respectively, as shown in Table 1.2. below.

Table 1.2 Principal Case Studies with Selected Sub Case Studies

Period Sub Case Study

Aerospace Shipbuilding Land systems

First Offset Stage F-16 fighter jet programme FPB 57 Fast Patrol Boat (FPB) programme Scorpion light tank programme

Second Offset Stage KT-1 Wong Bee

trainer aircraft programme Landing Platform Dock (LPD) programme Tarantula IFV programme

Third Offset Stage N295 transport

aircraft programme Guided missile destroyer escort (PKR) programme Caesar howitzer 155 and Mistral

Source: Fieldwork research at PT DI, PT Pindad, PT Pal, April 2014-August 2015

Embedded Case Study Design

The case study approach was conducted in each of three principal strategic industries. The purpose is to achieve a level of validation that cannot be obtained through a general survey. This study addressed offset implementation across three sectors of Indonesian defence industry, comprising aerospace (Indonesian Aerospace, PT DI), maritime (PT Pal), and land systems/ammunition (PT Pindad). The three case study firms represent the sectoral lead integrator of arms production and biggest contributor to defence procurement. PT DI represents 100% of the

aerospace sector, and while PT Pal and PT Pindad possess lower sectoral shares, they do represent the biggest company in each of their respective defence sectors. Due to their status as state-owned ‘strategic industries’ they have also been prioritised as the major receivers of offset programmes.

This research employed an embedded case study design; meaning that within a single case, attention is given to subunits (sub case studies). For example, for the case study of aerospace, attention is given to three different offset programmes across three different stages of offset development. Subunits were selected on the basis of their representativeness in each offset development period and the availability of near-complete data.

Stage Sampling of Offset Development and the Selection of Sub Case Studies

Sampling is necessary as a means of choosing the appropriate case, group and material in a way that the study can be conducted within the resources constraint. This study used purposive sampling, through a combination of quota and snowball sampling. The first sampling frame for analysis related to the population of government institutions which were or are linked to offset policy-making and practice, these are the Agency for Strategic Industry Management (BPIS), as the former lead agency and the Committee for Defence Industry Policy (KKIP), as the current lead agency. The implementation of offset through procurement is conducted by the Directorate of Defence Technology and Industry (Direktorat Tekinhan, DIT TEKINHAN) under the Directorate General of Defence Potential (Direktorat Jendral Potensi Pertahanan, DITJEN POTHAN) and the Defence Facilities Agency (Badan Sarana dan Prasarana Pertahanan, BARANAHAN) at the Ministry of Defence (Kementerian Pertahanan, KEMHAN). Defence industrialisation is closely related to technology policy, which falls under the authority of the Ministry for Research and Technology/ Agency for the Assessment and Application of Technology (Badan Pengkajian dan Penerapan Teknologi,BPPT), and development policy is formulated by the National Development Planning Body (Badan Perencanaan Pembangunan Nasional, BAPPENAS). The implementation of offset binds two stakeholders: national defence industry and foreign OEMs (Original Equipment Manufacturers) as the offset provider.

The second sampling level was aimed at targeting people in the strategic industries. The sampling must be treated differently in accordance with each offset development stage. While it was difficult to trace the heads of programmes in offset stage one, with some of these programmes having been conducted 30 years ago, sufficient amounts of information were generated by mixing interviews with people involved in the programme with secondary sources. Sampling for offset stage two and three were mostly aimed at the heads of the offset programmes (LPD, KT Wong Bee, Tarantula, N-295, PKR), and those with sufficient involvement in the programmes. ‘Sufficient’ in this context means that the respondent was directly involved in the programme carrying considerable responsibility; for instance, in contracting, designing and supervising the offset programme.

The way the researcher approached the sampling was through her role as a government consultant at BAPPENAS and KEMHAN. During her work as a consultant, the researcher was involved in a number of seminal researches, such as the profiling of the defence industry (2011-2012), an assessment of defence acquisition (2012), offset policy formulation (2013), as well as defence industry mapping and assessment (2014). Through these projects the researcher acquired access to the primary data sources and access to primary and secondary data (in the form of government reports).68

Data Collection

Triangulation was employed to overcome the potential of bias. For this purpose, the research used multiple sources of evidence - comprising primary (survey and interview) and secondary sources (unpublished government reports, company profiles, reputable databases of newspapers like factiva and lexisnexis) - and multiple types of data collecting methods. The survey and interviews were conducted over three time-periods. The first preliminary survey throughout December 2011- January 2012 yielded insignificant results, the fact that only one of the three firms surveyed understood the offset surveys and the other two could not answer the questions rendered the questionnaire invalid.69 _{Following a two-year}

stopgap70_{, the second and third surveys and interviews were conducted in mid-2014}

Table 1.3 Data Collection Activities

Objective Target Timeframe

Preliminary

survey To compile the population of the offset case study and industry’s perception on offset Sampling 2 (PT DI, PT Pal, PT Pindad) December 2011-January 2012

Survey I To gain insight intothe

understandingof leadership of the three companies on offset as a concept, government policy related to offset, offset life cycle, and the impact of offset to the companies in the past

Sampling 2 (PT DI,

PT Pal, PT Pindad) April-May 2013

Interviews To generate data on offset policy and

implementation through different stages of offset development

Sampling 1 (BPIS, Bappenas, BPPT, MoD, KKIP, BPPT)

April 2014– June 2014

Survey II To evaluate the impact of offset on aerospace, maritime, and ammunition and land systems

Sampling 2 (PT DI,

PT Pal, PT Pindad) April 2014- August 2015

Source: Author

While the first and the second data collections were targeted at the leadership level of companies, the interviews were targeted at project manager level and the staff directly involved in the offset programme. Respondents were selected through non purposive and snowball sampling, in which a ‘gatekeeper’ was identified and employed in each respective company. 71 The presence of the gatekeeper was crucial

in identifying respondents with suitable experience of offset, some of which are former senior staff that have already left the company.