The defense budget is still not ideal, not only in terms of value but also in expenditure for defense equipment modernization. Amid these limitations, consistency in policy, budgeting and budget utilization is needed.
By
KOMPAS TEAM
·4 minutes read
JAKARTA, KOMPAS – The modernization and strengthening of the primary weapons system (Alutsista) is a necessity in efforts to meet the country’s minimum basic strength. In the midst of the government’s limited budget for the modernization of the defense equipment, consistency in policy and budget allocation and use is needed.
The sinking of the KRI Nanggala-402 submarine off the coast of Bali at the end of April 2021 has again triggered public debate on the modernization of the country’s defense equipment. In a survey conducted by Kompas from May 17 to 19 involving 511 respondents in 34 provinces, 92.8 percent of respondents stated that in order to maintain Indonesia\'s territorial sovereignty, the government needed to periodically add state-of-the-art defense equipment.
Indonesia\'s defense budget has continued to increase in recent years but its value is still far from enough to finance the modernization of defense equipment.
The defense budget allocation for 2021 is Rp 134.25 trillion (US$9.40 billion), an increase of 14.12 percent from the 2020 allocation. However, 55.2 percent of the budget is for routine spending, such as salaries. Only 29 percent of the funds are allocated for the modernization program, and the rest are for operations, training and education.
Deputy Defense Minister Herindra said in an interview in mid-May 2021 that with such a budget profile, the Defense Ministry did not have much fiscal space to modernize defense equipment. This limits the ability to purchase the best defense equipment and routinely maintain the Indonesian Military’s (TNI) defense equipment.
KOMPAS/P RADITYA MAHENDRA YASA
Rows of combat and transport helicopters that are part of the main equipment of the Indonesian Army weaponry system at the Apache Hangar, Army Aviation Center, Semarang City, Central Java, Thursday (18/3/2021).
He said Defense Minister Prabowo Subianto had a strong commitment to modernizing the TNI\'s weaponry. A recent evaluation of the Defense Ministry shows that a large part of the country’s defense equipment is outdated. Previously, the ministry planned to buy used defense equipment to meet immediate needs for TNI operations and training (Kompas, 24/7/2020).
"Our commitment now is to buy new [equipment] in accordance with the President\'s direction to the defense minister," he said.
The chair of the House of Representatives Alutsista Working Committee, Utut Adianto, has expressed his support for the allocation of an additional funds for defense equipment modernization. However, Utut said the defense minister would have to wait longer if the ministry opted to buy brand new weaponry and equipment.
The defense equipment being ordered cannot be used immediately because it needs to be tested for four to five years. Meanwhile, the budgeting director general at the Finance Ministry, Isa Rachmatarwata, said the ministry would increase the budget for maintaining defense equipment. Isa said the plan to increase the budget for the maintenance of defense equipment would be based on a comprehensive evaluation of the national defense budgeting system, including the availability of investment and the inter-trade budgetary balance.
Kompas
A row of Sukhoi aircraft belonging to the Indonesian Air Force at Halim Perdanakusuma Air Base, Jakarta, Wednesday (13/8/2014). Sukhoi is a type of fighter aircraft for defense and maintaining the security of Indonesian territory.
Defense industry
National Development Planning Minister Suharso Monoarfa said Indonesia\'s defense budget was still very small, relative to other countries. A survey conducted by the Stockholm International Peace Research Institute (SIPRI) in 2021 found that of the 192 countries surveyed, 152 had defense budgets above 1 percent of their gross domestic product, he said. "Indonesia is among the 25 percent of countries whose defense budget is below 1 percent," said Monoarfa.
He said the government needed to find another strategy to meet primary weapons equipment needs such as by establishing a defense industry. This way, the money to be spent for the purchase of weapons would go to national companies.
"The economic impact of the defense industry can be three times the value of its production. If we spend US$10 million to buy weapons from within the country, the multiplier impact on the economy will be $30 million," said Monoarfa.
For such a purpose, the government needs to buy directly from weapons factories, not through third parties.
The economic impact of the defense industry can be three times the value of its production.
Consistency
Conflict, defense and security research coordinator at the Indonesian Institute of Sciences (LIPI), Muhamad Haripin, said the large military budget, which continued to increase every year, should be used transparently. He also noted the importance of consistency in the policy. He said there was inconsistency in the current policy. For example, the government had decided to buy used weapons instead of new ones. Such a policy not only sacrificed quality but also could harm the spirit of TNI personnel.
Instead of forming a new policy, he said, the Defense Ministry should focus on and finalize the Minimum Basic Power (MEF) program, which was planned for completion by 2024. Muhamad said that the change in the policy would disrupt the government’s overall defense equipment modernization program. (DIM/SYA/NAD/EDN)
This article was translated by Hendarsyah Tarmizi.
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