Peru Bets On Homegrown Defense: A New Law Targets Supply Chains And Readiness

Key Points

• Peru has sent a defense-industry promotion bill to Congress to cut import dependence and improve readiness.
• SIMA could add private fishing-vessel construction, linked to Callao upgrades and a Post-Panamax dry dock.
• The numbers are large: S/ 10,167.4 million ($3.04 billion) for defense in 2026 and a $1.5 billion U.S.-linked facilities plan.

Peru’s cabinet has approved a draft Law for the Promotion of the Defense Industry and sent it to Congress. Defense Minister César Díaz Peche says it would reduce reliance on foreign suppliers and speed security response.

The most revealing detail is SIMA Perú. SIMA would be able to build fishing vessels for private Peruvian clients. It could also take foreign orders, alongside naval construction and repairs.

The same plan points to a larger buildout at the Callao naval complex. It includes an expanded SIMA Callao yard and a Post-Panamax dry dock.

Defense Security Cooperation Agency material describes design and construction support for naval and maritime facilities at Callao.

Peru Pushes Long Term Defense Industry

The maximum cost estimate is $1.5 billion, spread over up to a decade. Reporting also cites a $45.38 million early phase. The bill also tightens the legal footing for FAME, the army’s arms and munitions producer.

It also covers SEMAN Perú, the aviation maintenance group. One near-term goal is smoother maintenance for aircraft operated by the police aviation directorate.

The push is partly a reaction to procurement stumbles in internal security. Reporting cites a ten-year delay tied to two failed transport-aircraft purchases.

It also notes controversy over ballistic-vest suppliers and mismatched small-arms buying. A 2026 congressional budget summary lists Sector Defensa at S/ 10,167.4 million ($3.04 billion).

It lists MINDEF at S/ 9,658.7 million ($2.88 billion). It shows S/ 9,194.7 million ($2.74 billion) in current spending and S/ 911.8 million ($272 million) in capital spending. Debt service is S/ 60.9 million ($18 million).

Supporters cite projections of 0.34%–1.07% of GDP in exports by 2044 and 13,425–42,783 direct jobs, plus 12,000+ new jobs by 2040.

Congress now decides whether this becomes disciplined capacity-building, or another cycle of expensive improvisation.

Related coverage: Brazil’s Morning Call | Runoff Or Knockout: Costa Rica’s Sunday Vote Hinges On One N This is part of The Rio Times’ daily coverage of Peru affairs and Latin American financial news.