Military told to be transparent about funds

Fabiola Desy Unidjaja and Kurniawan Hari, The Jakarta Post, Jakarta

Former defense minister Juwono Sudarsono urged the Indonesian Military (TNI) on Tuesday to reveal its financial sources apart from the state budget to avoid irregularities in fund-raising and use.

Juwono, who served for 10 months in the short-lived Cabinet of president Abdurrahman Wahid, said that for decades the state budget only covered 30 percent of the military's expenditure.

"The rest of the funding comes from 250 financial units, ranging from businesses, foundations to cooperatives. The TNI should make those resources accountable," Juwono said.

He asserted that the amount of the TNI budget was never a question inside the institution, but how the military spent the money should be scrutinized.

"You can find many irregularities even in the 30 percent budget allocation from the state, so how they spend it is most important," Juwono said.

Debates over military funding came to the fore again after the defense ministry asked for a 10 percent increase in the allocation from the state budget, saying the money was needed to deal with separatist movements in the country.

The demand raised many eyebrows as it also reflects the intention of the TNI to regain its role in security instead of defense affairs, which contradicts its pledge to reform internally.

It is public knowledge that TNI controls many companies, including Mandala Airlines and military equipment manufacturer PT Pindad, to financially support its daily operations.

The government raised the defense budget by 18 percent for the current fiscal year from Rp 7.4 trillion (US$822million) in 2001.

Incumbent Minister of Defense Matori Abdul Djalil contended that the request for a larger allocation was justifiable as the military had to support the police in maintaining peace and order in conflict-prone areas.

"The police need help from the military. It is impossible for the police to pay TNI for its help. That's why the TNI needs more money," he remarked on Tuesday.

Juwono underlined that the amount of government-allocated money was never an issue inside the military as the 250 financial units had been very supportive of TNI operations and soldiers' welfare.

"I planned a 10-year program to audit and make those resources fully fledged businesses, but I do not know whether the program still exists or not," he said.

In 2000, the Ministry of Defense under Juwono conducted an internal audit of the 200 units and found irregularities at PT ASABRI and Setya Bhakti Pertiwi foundation. But TNI has not reported whether any measures were taken after the audit.

Criticism has mounted on the proposed military budget allocation, with legislators considering it a major setback.

Djoko Susilo, a member of House of Representatives Commission I for defense and foreign affairs, said the proposed hike in the TNI allocation was an indication of the military's intention to revive its security role.

"It is a setback. The police should be in charge of domestic security," Djoko of the National Mandate Party (PAN) said.

Haryanto Taslam of House Commission II for domestic and security affairs claimed that the move was acceptable as long as it was aimed at maintaining national unity.

Taslam of the Indonesian Democratic Party of Struggle (PDI Perjuangan) said the role of the military in domestic security was justifiable providing that the very existence of the state was under threat.