Indonesian Political, Business & Finance News

TNI chief pledges not to repeat mark-ups

| Source: JP

TNI chief pledges not to repeat mark-ups

Tiarma Siboro, The Jakarta Post, Jakarta

Indonesian Military (TNI) chief Gen. Endriartono Sutarto vowed on
Monday not to allow any mark-ups in the purchase of military
hardware and promised to punish any personnel who committed
corruption in the future.

"I don't deny that in the past one or two of my subordinates
did mark up the prices of military equipment or the construction
cost of military installations," Endriartono said during a
hearing with House of Representatives (DPR) Commission I for
political, security and foreign affairs.

"Should it happen again, I will investigate those involved,"
he added quickly.

He defended the military, however, saying that if the TNI had
asked for a higher budget allocation, it was because it had to
pay "the cost of export credits and interest".

"I hope the legislators understand that when the TNI purchases
military equipment from certain countries, they offer us some
credit facilities because we cannot pay in cash.

"As a consequence, we must pay some of the cost of the export
credits and interest. These costs, of course, will increase the
budget, but they cannot be called mark-ups," Endriartono said.

"We have some 35 submarines ... which I believe Pak Sondakh
wants to operate, don't you?," Endriartono said turning to the
Navy Chief of Staff Adm. Bernard Kent Sondakh, who accompanied
the TNI chief during the hearing.

During a visit to Slovakia and the Czech Republic recently,
President Megawati Soekarnoputeri learned that in the past the
military had often marked up the price of military hardware
purchases.

In 1994, the TNI came under fire for buying used submarines
from Germany at very expensive prices.

Megawati is reportedly considering buying some military
equipment from the Czech Republic, including the L-159 jet
fighter.

Indonesia has been forced to seek weapons from new sources
following the United States' Congress's decision to impose a
military embargo on the TNI following the 1999 post ballot
violence in East Timor.

Megawati warned the military not to mark up the price of the
military equipment that Indonesia might buy from the Czech
Republic and Slovakia.

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