Indonesian Political, Business & Finance News

Military to up spending to modernize equipment

| Source: JP

Military to up spending to modernize equipment

Rendi A. Witular, The Jakarta Post, Jakarta

The recent dispute between Indonesia and Malaysia over territory
and resources has rung alarm bells for the Indonesian military
(TNI) to immediately increase spending to modernize its tattered
war machines.

TNI Commander Gen. Endriartono Sutarto said the TNI along with
the Ministry of Defense would propose a significant increase in
military spending this year during the upcoming state budget
revision scheduled to start this month.

"An immediate increase in military spending is a must. The TNI
needs support from all parties to improve its equipment and arms
in order to address future external threats," Endriartono told
journalists aboard a commercial flight on Tuesday.

Endriartono refused to disclose the exact amount of the
increase being sought, however, he hinted that the budget
increase should be able to cover costs for reviving and
modernizing all of TNI's war machines, which were either not
functioning or too old.

"Our target for the next two years is to make all of our
equipment fully operational. That will be just enough to defend
our country from external threat," said Endriartono, adding that
most of the funds would be allocated to the Navy and Air Force.

Based on the state budget, military spending this year is set
at Rp 21.9 trillion (US$2.4 billion), up slightly from Rp 21.4
trillion last year and Rp 11.53 trillion in 2003.

The TNI's military equipment has been steadily deteriorating
as a result of the 13-year arms embargo by the United States,
which was imposed due to gross human rights violations in East
Timor.

Endriartono said that the TNI was unlikely to purchase new
arms for another two years, but might start expanding its
equipment purchases again in 2007 when the country's economy was
stronger.

Indonesia, southeast Asia's largest economy, needs a strong
military force not only to address threats at home, such as
separatist movements, but also as a deterrent to neighboring
countries.

"Fighting separatism is not a grave threat for us since they
can be tackled with small arms. The most dangerous threat comes
from other countries. We need to show them that we are strong
that they can't mess around with us," said Endriartono.

"Having a strong military is also a matter of dignity and
sovereignty. Malaysia dares to claim our territory and acts
rudely to our migrant workers because they know that we are not
that strong," he said.

Endriartono also said that Indonesia would soon be able to
directly procure spare parts for its Hercules aircraft, worth
some $50 million this month, after the United States agreed to
ease restrictions on the purchase of such parts.

Meanwhile, regarding efficiency efforts within the TNI,
Endriartono said he had undertaken discussions with related
ministries over the possibility of revising existing regulations
on procurement, which had only created high costs for the TNI.

Endriartono suggested that any procurement of military
equipment should be carried out directly by the Ministry of
Defense without having to seek the assistance of third parties or
private partners.

"Procurement using third parties only makes the price of our
equipment more expensive because we have to cover the interest on
the costs and also for their service fees ... We can actually
save up to 50 percent if we can procure directly," he claimed.

The regulations, where military equipment and arms have to be
purchased through third parties, was issued by former President
Soeharto with the sole aim of enriching his family and cronies.

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