Fri, 13 Sep 2002

Govt, House hope for more transparency in TNI budget

Tiarma Siboro, The Jakarta Post, Jakarta

Pressures have mounted for the Indonesian Military to improve transparency in its spending following the government proposal to raise its defense budget for 2003.

Anwar Nasution, senior deputy Governor of Bank Indonesia, and Amris Hassan, a legislator from the Indonesian Democratic Party of Struggle (PDI Perjuangan), were of the opinion that the military, as well as other institutions, had to gradually stop the use of non-budgetary funds -- funds from side businesses and foundations -- because the practice lacked public accountability.

"I guess the military is not the only institution to have financed its operations using non-budgetary funds. Almost all institutions have (outside income sources). And we (the government and the House) must gradually stop them," Anwar told The Jakarta Post on Thursday on the sidelines of a meeting between the government and the House Budget Commission on the revision of the 2003 State Budget.

"For the military...it may be more complicated because these foundations and side businesses became standard procedure during Pak Harto's administration," Anwar said, referring to former long-time president Soeharto.

Amris urged the military to immediately clarify whether or not it spent some 30 percent of non-budgetary funds for its operations, or else "we will no longer support them in raising the budget."

"Transparency is a must, and we will conduct an annual review to see whether or not the military seriously upholds public accountability. Thus far, I believe the institution has the good will to promote transparency, but they have failed to do it," Amris, also deputy chairman of the House Commission I on political, security and foreign affairs, said.

On Monday, Minister of Defense Matori Abdul Djalil asked for approval from Commission I for an increased budget for the Ministry from Rp 16.162 trillion (US$18 million) last year to Rp 19.487 trillion in 2003.

The hike of some Rp 3.3 trillion covers the ministry's routine spending of Rp 2.62 trillion and its development spending of Rp 705 billion.

According to Matori, the increase is necessary as the military plans to improve the daily meal allowance for soldiers to Rp 17,500 from the current Rp 12,500 and spend more for operational, education and training expenses from the current Rp 489 billion to Rp 1.143 trillion.