Tue, 02 Sep 2003

Ministry probes Riau warship deal

A'an Suryana, The Jakarta Post, Jakarta

The Ministry of Home Affairs is investigating a deal between the Riau provincial administration and the Indonesian Navy's Western Fleet on the purchase of a warship, a high-ranking government official says.

Spokesman of the home ministry I Nyoman Sumaryadi said on Monday that his office would not hesitate in voiding the deal if it violated any existing laws.

He was commenting on a controversial purchase of a warship by the Riau administration last week, the first time a regional government was ever involved in the purchase of weaponry.

The warship, KAL 35, is produced by local ship maker PT Pelindo Tanjung Pinang, and costs Rp 12.8 billion (US$1.6 million).

Under legal ownership of Riau, the warship would be operated by the Navy's Western Fleet to safeguard Riau's waters from smuggling and any other threats to the country's sovereignty.

It is thought the Western Fleet, which is in dire need of warships to supplement its fleet, supported the purchase of the warship.

The deal came under public scrutiny after military analysts expressed concern over it.

According to analysts, including military observer M.T. Arifin, the deal had procedural flaws and violated Law No. 3/2002 on state defense and Law No. 22/2000 on regional administration, also known as the Regional Autonomy Law.

Article 10 of Law No. 22/2000 allows regional governments to assist security personnel in improving their facilities and equipment, including the procurement of arms.

Any assistance to security personnel, however, should be channeled through the central government.

Article 25 of Law No. 3/2002 stipulates that national defense is financed by the state budget.

Arifin said, in giving the Navy direct monetary assistance the regional government of Riau had bypassed the central government, which was a blatant violation of the law.

Under the new National Defense Law, only the Ministry of Defense has the authority to purchase military equipment, with the money to be provided from the state budget.

The House is currently investigating the government's decision in April to buy four Russian-made jet fighters -- two Sukhoi-27 and two Sukhoi-30 -- in a countertrade deal that bypassed not only the House, but also the defense ministry.

Although the investigation remains open and unresolved, two of the Sukhoi jet fighters has already arrived in Indonesia, with the government preparing to send its first payment to Russia in the form of goods and products.