Military must not get involved in business: Observer

Military must not get involved in business: Observer

JAKARTA (JP): Experts say Armed Forces' (ABRI) major ventures
in business had not only violated the law but also damaged market
mechanisms.

Indria Samego, a military observer and researcher at the
Indonesian Institute of Sciences (LIPI), said that ABRI as a
state institution was not allowed to do business and the fact
that it had reigned in business over the last three decades had
damaged market mechanisms in the national economy.

"The military's involvement in business is against the law and
the way it has been doing business has made... an unhealthy
(business climate)," he said in a discussion marking the
launching of his book Bila ABRI berbisnis (When ABRI goes into
business) here on Monday.

He cited how the military used its power and guns to run
businesses. "In such a condition, no companies have dared to
compete with the military's businesses," he said.

He also cited that professionals hired by ABRI to run its
businesses have expanded from one sector to various other sectors
easily because they were backed by generals.

The military, he charged, also created strong ties with
Chinese-Indonesian businesspeople, who later dominated the
economy.

"The military provided security for the Chinese-Indonesians in
doing their businesses, and gained, in return, a certain portion
of the profit for their service," he said.

Indria said ABRI started to go into businesses in the 1950s
and had developed empires since the 1970s until now and no one
dared to protest.

According to Indria's book, ABRI has been running 40 companies
under the Army's jurisdiction and 24 other companies -- with
eight being under the Air Force, Navy and National Police.

Several of the companies developed under the Army's Kartika
Eka Paksi Foundation are PT Aerokarto Indonesia, PT Asuransi
Cigna Indonesia, PT Cilegon Fabricators, PT Kayan River Indah
Plywood, PT Kultujaya Triusaha, PT Lukita Wahana Sari, PT Meranti
Sakti Indonesia, PT Panca Usaha Palopo Plywood, PT Pondok Indah
Padang Golf, Bank Arta Graha and PT Private Development Finance.

The Navy-owned companies include Bank Bahari, PT Admiral
Lines, PT Yala Trading, Bintan Beach International Resort while
companies run by the Air Force include Bank Angkasa, Dirgantara
Air Service, Angkasa Puri and Cardig.

Companies which are under the National Police's jurisdiction
are PT Tansa Trisna, PT Bhara Induk, PT Braja Tama, PT Braja
Tara, PT Asuransi Bhakti Bhayangkara, PT Sapta Pirsa Mandiri and
PT Bhara Union.

Beside the numerous companies, the Army, Navy, Air Force and
National Police are also running their own cooperatives to
improve their members' welfare, said Indria.

He said ABRI had played not only its now much-criticized dual
function but is also multifunctional, because it has been present
not only in defense and politics but also in the legislative
bodies, bureaucracy and businesses.

Harry Tjan Silalahi, a political expert from the Center for
Strategic and International Studies (CSIS), shared Indria's
opinion and suggested that ABRI return to its traditional role in
defense.

As a compensation for the businesses lost, its members' wages
should be increased, he said.

"I think the annual defense budget should be increased not
only to improve ABRI's professionalism but also to improve its
members' welfare," he said.

He also said people did not object to ABRI establishing
cooperatives to improve the welfare of its soldiers.

Abdulla Toha, the general manager of Ummat weekly, agreed and
said the military should pull out of business and prioritize its
task in defense and security. (rms)