Indonesian Political, Business & Finance News

Ambalat diplomacy budget cut

| Source: JP

Ambalat diplomacy budget cut

Ivy Susanti and Tiarma Siboro, The Jakarta Post, Jakarta

The Ministry of Foreign Affairs has cut the budget for
diplomatic efforts to settle the Ambalat dispute almost 10 fold,
from a massive Rp 60.4 billion (US$6.34 million) to a modest Rp 8
billion for the year 2005, a top official said on Wednesday.

The move comes as the Ministry of Defense proposed a hike in
the defense budget this year particularly to help improve the
capability of the Navy and Air Force in defending the country's
territory.

Foreign ministry secretary-general Sudjadnan Parnohadiningrat
did not elaborate on the reason for the budget revision, but
explained that the earlier budget assessment was based on a
"worst case scenario".

It was not clear whether the House of Representatives would
review the revised budget, since the legislators had already
approved the previous one of Rp 60.4 billion.

"We have reviewed the situation with the related technical
department to determine the most efficient negotiation strategy
to meet our own interests. We concluded that the budget need not
even reach Rp 10 billion. For the year 2005, after much internal
discussion, we decided to find the most efficient negotiation
strategy to claim Ambalat as our territory. We will allocate Rp 7
billion to Rp 8 billion," Sudjadnan told reporters on the
sidelines of the Asian-African Senior Officials' Meeting.

Sudjadnan said that the initial budget was planned in a rush.
"It was an early assessment. We were asked by the House budget
committee to submit the budget only a day before the meeting. We
thought of the worst-case scenario, involving various
departments. We would have to survey our maritime area, measure
the exclusive economic zone, send people to international
organizations, collect data and pay lawyers, but now we think not
all of those measures are necessary."

Indonesia and Malaysia have been engaged in a territorial
dispute over a deep water oil block called Ambalat in Sulawesi
Sea over the past month. Although the two countries had initially
sent warships and war planes to the area, the two sides later
agreed to settle the dispute through diplomatic efforts. The last
talks took place in Jakarta on March 9, and will continue again
in May.

But the Ambalat issue had been used by the country's military
forces to seek a higher defense budget.

Minister of Defense Juwono Sudarsono has recently proposed an
increase in the 2005 defense expenditure from Rp 21.6 trillion to
Rp 26.6 trillion. The lawmakers, however, have yet to approve the
proposal.

Juwono is optimistic that the House will at least approve
between Rp 1.5 trillion to Rp 3 trillion in additional funds.

The defense budget of the world's fourth most populous country
is considered very low, even compared to smaller neighboring
countries, such as Thailand and Malaysia. The initial defense
budget figure only accounts for 6 percent of the 2005 state
budget.

Commenting on the government's plan to raise the military
budget, the Air Force has said that they might procure six more
Russian-made Sukhoi jet fighters and spare parts for the Hercules
C-130 transport planes, while the Navy plans to procure
submarines, missiles and patrol boats equipped with rockets.

The Indonesian Military has approximately 400,000 active
troops. But much of its military equipment is in poor condition.
It has two squadrons of Hercules aircraft but only a handful are
operational. This has often been used by the TNI as a reason for
their slow response in sending soldiers and humanitarian aid to
areas hit by security disturbances and natural disasters.

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