Govt to take over TNI businesses
Govt to take over TNI businesses
Kurniawan Hari, The Jakarta Post/Jakarta
Minister of Defense Juwono Sudarsono said on Wednesday that the
government would take over military business enterprises that
have assets worth Rp 5 billion (US$550,000) or more, while
smaller ones would continue to be owned by the Indonesian
Military.
Speaking during a hearing with the House of Representatives'
defense commission, Juwono said that the enterprises taken over
by the government would be converted into state-owned companies.
"The smaller ones will not be taken over. They will still be
owned by the TNI to help fulfill the soldiers' needs," Juwono
said, referring to the Indonesian Military.
The assets of the business enterprises owned by the military
range between Rp 1 billion and Rp 5 trillion.
The TNI Law (No.32/2004) strictly bans soldiers from getting
involved in any business activities. The law also says that all
TNI activities and needs are to be financed out of the State
Budget.
The TNI law, signed by former president Megawati Soekarnoputri
on Oct. 16, also stipulates that the government must take over
all business activities of the TNI within the next five years.
It was not surprising, therefore, that Juwono's statement
immediately drew strong reactions from legislators attending
the hearing.
Djoko Susilo of the National Mandate Party (PAN) said that as
long as soldiers continued to be involved in business, efforts to
build up a professional military would be difficult to realize.
"We do not want soldiers to engage in business while at the
same time forget their military responsibilities," Djoko said.
Effendi Simbolon of the Indonesian Democratic Party of
Struggle (PDI-P), meanwhile, said that Juwono's statement was a
personal opinion and therefore could not be used as a reference.
He said that the minister would possibly carry out the reform
by focusing on businesses that have assets of more than Rp 5
billion.
Juwono said he had floated the idea simply to stimulate
discussion on the TNI's business activities. He also said that he
would meet with State Minister for State Enterprises Soegiharto
to discuss the issue.
During a hearing with the defense commission last week, TNI
chief Gen. Endriartono Sutarto acknowledged that the TNI's business
enterprises contributed 70 percent of the TNI's budget. During
the hearing, legislators urged the TNI to make moves to comply
with the TNI law.
Responding to the demand, Endriartono said that the TNI had
asked an independent auditor to audit the military's businesses.
"We will report the results of the audit to the House," he
added.
Meanwhile, defense observer Kusnanto Anggoro from the Centre
for Strategic and International Studies (CSIS) said that building
up a professional TNI was essential.
He said that in its current state, the TNI would be able to
perform optimally in defending the country's territorial
integrity.
Kusnanto added that the main problem in the TNI was not the
amount of money it received but rather transparency and
accountability in the way it spent this money.
Meanwhile, Andi Wijayanto from the University of Indonesia
(UI) said that the defense ministry and the TNI must decide on
which units should be upgraded to counter potential threats.
"For example, if we agree that the major potential threats are
separatist rebels and sectarian conflicts, then we must reinforce
the Army," he said.
Selected military business
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Companies Assets Owner
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PT Indotruba Tengah 116 billion Army
PT Taliabu Timber 7 billion Army
PT Sumber Mas Timber 35 billion Army
PT Bank Artha Graha 5 trillion Army
PT Aerokarto Indonesia 869 million Air Force
PT Yala Trading - Navy
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Source: ICW, TNI