Indonesian Political, Business & Finance News

Global military spending hits record $2.89 trillion in 2025

| Source: ANTARA_ID Translated from Indonesian | Economy
Global military spending hits record $2.89 trillion in 2025
Image: ANTARA_ID

Tokyo - Global military spending reached a record $2.89 trillion (approximately Rp49.79 quadrillion) in 2025, up 2.9 per cent from the previous year, amid ongoing conflicts and rising security uncertainties, according to a report from an international security think tank on Monday.

This increase marks the 11th consecutive year of growth, driven by a 14.0 per cent surge in Europe and an 8.1 per cent rise in Asia and Oceania. The Stockholm International Peace Research Institute (SIPRI) attributes the European uptick to efforts by North Atlantic Treaty Organisation (NATO) member states to enhance self-reliance, amid growing pressure from the United States (US) to strengthen burden-sharing within the alliance.

European military spending totalled $864 billion (approximately Rp14.88 quadrillion), while Asia and Oceania reached $681 billion (approximately Rp11.73 quadrillion). The global military burden, or military spending as a percentage of gross domestic product, rose to 2.5 per cent, the highest level since 2009.

Meanwhile, US military spending fell 7.5 per cent from the previous year to $954 billion (approximately Rp16.43 quadrillion) in 2025, primarily due to the absence of new military financial aid approvals for Ukraine throughout the year, according to the institute’s analysis.

However, the decline in spending by the world’s largest military spender is expected to be temporary, said Nan Tian, Director of SIPRI’s Military Expenditure and Arms Production Programme. He noted that the budget approved by the US Congress for 2026 has already exceeded $1 trillion (approximately Rp17 quadrillion) and could rise to $1.5 trillion (approximately Rp25.84 quadrillion) in 2027.

China, the world’s second-largest military spender, increased its outlays by 7.4 per cent to around $336 billion (approximately Rp5.78 quadrillion), marking 31 consecutive years of annual increases.

Russia, ranked third, raised its spending by 5.9 per cent to around $190 billion (approximately Rp3.2 quadrillion). The top three countries accounted for 51 per cent of the global total.

Japan, ranked tenth, boosted its spending by 9.7 per cent to $62.2 billion (approximately Rp1 quadrillion), equivalent to 1.4 per cent of GDP, the highest level since 1958, according to SIPRI.

Military spending in the Middle East remained relatively stable at around $218 billion (approximately Rp3.76 quadrillion) in 2025, up 0.1 per cent from 2024, despite ongoing conflicts and regional rivalries.

Israel’s military spending fell 4.9 per cent to $48.3 billion (Rp832.2 trillion), reflecting reduced intensity of the war in the Gaza Strip following a ceasefire agreement with the Palestinian group Hamas in January 2025, according to the institute.

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