Indonesian Defense Economy in the Industrial Revolution Era 4.0

The defense economy as an economy that has an important role, of course, in its journey faces challenges, especially the low national Research and Development budget of <1% of GDP/Per Capita. Director-General of Research and Development (R&D) Kemenristekdikti Muhammad Dimyati previously said that Indonesia's research growth in the last four years had grown rapidly. Based on 2017 data from the Ministry of Research, Technology and Higher Education, Indonesia's research budget is only 0.25 percent of total GDP, if converted into IDR 30.78 trillion. The second challenge is the entry of the digital era which must be responded wisely and anticipated as the 4.0 industrial revolution in the development of science. The purpose of this study is to describe more about how research & development and the industrial revolution 4.0 are in building a defense economy. In this study, the authors used data analysis techniques with a qualitative descriptive analysis strategy model. The results of the research show that the results of research and development funds are used to innovate to support increased productivity. As a result, the country's production performance has improved and boosted economic growth. The Industrial Revolution 4.0 makes work done by individuals or companies more effective and efficient. With this efficiency and effectiveness, the economy will increase and automatically the defense will also increase. So research & development and industrial revolution 4.0 in practice can build and strengthen the existing defense economy in a country.