Issues beyond Budget

KOMPAS/P RADITYA MAHENDRA YASA

Rows of combat and transport helicopters belonging to the Indonesian Army at the Apache Hangar, Army Aviation Center, Semarang City, Central Java, Thursday (18/3/2021). The AH-64E Apache helicopter gunship is the latest weaponry system imported from America.

JAKARTA, KOMPAS – The budget for modernizing and maintaining the country’s primary weaponry system (alutsista) is still not ideal. Of the minimum requirement of Rp 60 trillion, the available budget in 2021 is only Rp 29.1 trillion.

However, issues surrounding the country’s defense equipment is not limited to the budget. The Civil Society Coalition for Security Reform assessed that there are still problems with transparency and accountability.

Based on Book III of the Compilation of Work Plans and Budget of State Ministries/Agencies in 2021, the total budget allocated for the Defense Ministry this year amounts to Rp 136.9 trillion. From year to year, the budget for the ministry continues to increase. In 2020, for example, the Defense Ministry’s allocated budget totaled Rp 117.9 trillion.

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Nonetheless, most of the budget has been allocated for personnel spending. In 2021, personnel expenditure received the largest allocation due to plans to increase soldiers’ performance allowance by 80 percent according to a promise made my President Joko “Jokowi” Widodo during the Indonesian Military’s (TNI) 74th anniversary. As for the modernization and maintenance of defense equipment, only Rp 29.1 trillion or 21 percent of the ministry’s budget has been allocated.

Defense Ministry spokesman Dahnil Anzar Simanjuntak, when contacted from Jakarta, Tuesday (27/4/2021), said that ideally, half of the ministry’s total budget should be used for capital expenditures, especially for the modernization and maintenance of defense equipment. However, due to the high figures required for personnel expenditure, including plans to increase the performance allowance for soldiers, the allocation for defense equipment needs this year has only been met by 21 percent.

The Defense Ministry hopes that increasing the defense equipment procurement scheme will be put into practice.

Ideally, if a country wants to build a strong defense, it must also allocate a large budget. “The Defense Ministry hopes that increasing the defense equipment procurement scheme will be put into practice,” said Dahnil.

Following the sinking of the KRI Nanggala-402 submarine, Defense Minister Prabowo Subianto expressed hope that the modernization of defense equipment would be carried out immediately. Thus, Prabowo will propose schemes and strategic plans to accelerate the modernization of the equipment. Along with the President, the scheme will also be submitted to the House of Representatives, allowing them to participate in increasing the defense equipment budget to an ideal figure.

Independent audit

Aside from budgeting, the Civil Society Coalition for Security Reform also highlighted governance in the modernization and maintenance of defense equipment. It is possible that issues plaguing defense equipment management – including mismanagement and neglect to maintain defense equipment – increases the risk of accidents.

Kompas notes that in 2012, the House of Representatives found inflated prices for the procurement of the Sukhoi aircraft from Russia. In 2017, the Corruption Eradication Commission (KPK) also investigated the allegations of corruption in the Agusta Westland (AW) 101 helicopter procurement project. This project is estimated to have caused a loss of Rp 220 billion in state funds.

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“The people have the right to know what the budget is being used for because this money comes from the people. Even if this is kept confidential, data on defense equipment is now very transparent globally,” said Indonesia Corruption Watch (ICW) coordinator Adnan Topan Husodo. ICW is one of at least 15 groups that make up the Civil Society Coalition for Security Reform.

The people have the right to know what the budget is being used for because this money comes from the people.

Thus, an independent audit is required by involving institutions such as the KPK to supervise and investigate the use of the defense budget, particularly in the procurement and maintenance of defense equipment.

Separately, Rear Adm. Muhammad Ali, Indonesian Navy Chief of Staff assistant planner, said the Navy would conduct an audit on the KRI Nanggala-402 submarine tragedy. The audit will engage both submarine experts and builders.

This article was translated by Kesya Adhalia.