President Susilo approves additional military funding

President Susilo approves additional military funding

Rendi A. Witular, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono approved on Wednesday a
proposal for an increase in the country's military spending this
year despite earlier opposition amid concern over the widening
state budget deficit.

Minister of Defense Juwono Sudarsono said the President had
agreed to provide an additional Rp 1.7 trillion (US$180 million)
for military spending from the current budget allocation of Rp
21.6 trillion.

"An increase in military spending is a must. The military
(TNI) needs support from all parties to improve its equipment and
arms in order to address future external threats," said Juwono
after a limited Cabinet meeting to discuss funding for the
defense sector.

Juwono, however, said the final decision would be made during
the upcoming state budget revision meeting with the House of
Representatives Budget Committee.

The additional funds approved by the President, however, are
lower than the initial Rp 5 trillion demanded by the Ministry of
Defense, as Minister of Finance Jusuf Anwar had repeatedly
rejected the proposal due to limited capacity of the state
budget.

Should the new military spending budget be approved by the
House, Juwono said it would help cover the cost of repairing and
modernizing TNI equipment, which was either not functioning or
too old.

"Considering the limited funds in the state budget, I think
the allocation is just enough for this year. It is important for
us is to improve accountability and transparency in the use of
the funds in order to gain maximum results," he said.

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

Next year, Indonesia is expected to increase its military
spending by Rp 24 trillion.

Indonesia, Southeast Asia's largest economy, needs a strong
military force not only to address threats at home, such as
separatist movements, but also to protect its borders.

The defense budget of the world's fourth most populous country
is considered very low, even compared to smaller neighboring
countries, such as Thailand and Malaysia.

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

The condition was exacerbated further by the Asian financial
crisis in late 1997 which ravaged the Indonesian economy.