Edi proposes 24 percent hike in defense spending
JAKARTA (JP): Minister of Defense and Security Gen. Edi Sudradjat is pressing for a 24 percent hike in next year's defense budget.
Edi yesterday proposed a budget of Rp 6.15 trillion ($2.9 billion) for the 1995/96 fiscal year during a hearing with Commission I of the House of Representatives (DPR) which handles security and defense issues.
The plan calls for Rp 4.79 trillion in recurrent spending, such as troopers' payrolls and maintenance costs, with another Rp 1.36 trillion on development spending which includes the procurement of the Armed Forces' weaponry.
"The proposed budget is relatively small and should not cause big changes in defense and security," he told the hearing.
Indonesia's defense spending has averaged 1.5 percent of Gross Domestic Product (GDP). This is a significant decrease from the 3.47 percent of 25 years ago.
In the face of strong pressure for the military to upgrade its aging hardware, President Soeharto, himself a retired army general, has repeatedly asked the Armed Forces to persevere, stressing that improving the people's welfare takes priority in the state budget allocation.
However, the military is currently in the process of receiving 39 used warships from the arsenal of the former East Germany and 24 Hawk jetfighters from British Aerospace.
The Ministry of Finance is currently drafting the government's budget for the 1995/96 fiscal year which begins next April. Traditionally, the various government agencies in competing for the scarce resources seek the support of the DPR, which must approve the government's spending plans.
Spending plans
President Soeharto is slated to present the draft budget to the House in the first week of January.
Edi yesterday detailed some of his spending plans, including Rp 775 billion to be used to finance programs to train troopers.
The increase is necessary to finance the development of ABRI's "software" in the territorial and socio-political fields and to improve the welfare of ABRI's personnel, he said.
The budget includes Rp 583 billion ($265 million) in export credits to finance some of the imported hardware.
"This fund will be used to finance the program to upgrade the weapons and equipment in the Army, Navy, Air Force and National Police," he said.
Gen. Edi also disclosed that his ministry is currently in the process of drafting legislation designed to beef up Indonesia's defense and security system.
Two bills are expected to be presented before next April, one on the National Security System, and the other regulating street demonstrations.
A bill on the Military Tribunal will be presented in 1995/96.
The other bills are on soldier's discipline, people's defense training, mobilization and demobilization, national surveying and mapping, and state police. (rms)