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.