Indonesian Political, Business & Finance News

Armed forces to share war machines for the sake of efficiency

| Source: JP

Armed forces to share war machines for the sake of efficiency

Muninggar Sri Saraswati
The Jakarta Post/Jakarta

The Ministry of Defense is considering a system that will enable
the three branches of the Indonesian Military (TNI) to share
equipment to save money.

"The aim will be to encourage cooperation among the three
armed forces so we can use our budgets efficiently and
effectively. For example, the Army, Navy and Air Force could
share helicopters and planes," Minister of Defense Juwono
Sudarsono said.

Juwono is currently in the United States for talks on the
resumption of military relations between the two countries. The
U.S. imposed an arms embargo on Indonesia in 1992 following a
TNI-led massacre of civilians in Dili, East Timor, which later
separated from Indonesia in 1999.

According to the minister, only 30 percent of the military
budget would be spent on arms sale, while the rest would be used
to pay the soldiers' salaries and maintain equipment.

Indonesia has some 250,000 soldiers.

Despite the proposal for a significant increase in military
spending during the upcoming state budget revision, Juwono said
he was prepared for bad news.

The House approved a Rp 21.9 trillion (US$2.38 billion)
military budget for the 2005 fiscal year, slightly up from Rp
21.4 trillion last year and Rp 11.53 trillion in 2003.

"It's a big figure. We are one of the departments that got the
biggest budget allocation. The problem is, that it is only
sufficient to cover a half of our minimum needs, therefore we
have to use this money as effectively and efficiently as
possible," he said.

Indonesia Military (TNI) Chief Gen. Endriartono Sutarto said
the TNI, through the Ministry of Defense, would propose a
significant increase in military spending this year to revive and
modernize all of its war machines.

Due to the limited state budget, the military has been allowed
to run businesses. The TNI claims, however, proceeds from the
businesses are mostly spent on soldiers' welfare.

Critics have blamed the businesses for hampering
professionalism in the TNI, and warned of corruption due to lack
of transparency in the management of the military's businesses.

Juwono said his ministry was working hard to reorganize the
military businesses and make them more accountable and
professional for the sake of the military's rank and file.

"We will start compiling all data about military businesses
this month. We are expected to finish in October," he said.

To reorganize the businesses, the defense ministry would
cooperating with the industry, justice and human rights and the
finance ministries.

"The industry ministry will handle the management of the
military business to make it professional, the justice ministry
will take care of its legal aspects, while the finance ministry
is involved because the revenue from the business will go into
state coffers," Juwono said.

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