TNI wants to retain rich foundations

Tony Hotland, The Jakarta Post, Jakarta

The Indonesian Military (TNI) wants to keep running its many rich cooperatives and foundations but is offering to give up its other businesses to the state.

Speaking at a hearing with the House of Representatives Commission I on defense and foreign affairs TNI chief Gen. Endriartono Sutarto said the military still needed those business ventures as the government alone would not be able to improve the welfare of the country's soldiers.

"We'll still need these ventures to at least ease the burdens on our soldiers. But they will only serve TNI's needs and not seek profits by serving other enterprises or parties," he said.

Endriartono said the foundations and cooperatives would only provide soldiers with basic needs and not operate businesses requiring large amounts of capital.

"We want to run cooperatives that sell basic needs to our soldiers, like food or household materials, which cost less than ordinary shops. We will try to get the materials directly from factories to cut prices," he said.

As for the foundations, he said, the TNI would turn them into ventures that would provide scholarships to the offspring of deceased soldiers.

Many politicians and activists have called on the TNI to relinquish to the state the many businesses it has been operating since independence in line with the implementation of Law No. 34/2004 on military reform.

Under the law, the government must take over all business activities of the TNI within five years as part of sweeping reforms in the military.

The law also bans soldiers from engagement in all businesses to ensure the military focuses on defense and improves its professionalism.

The military has been involved in businesses since the late 1940s, but grew the most at the beginning of the New Order era in the early 1970s under former president Soeharto, a retired five- star Army general.

Almost 70 percent of the TNI's annual budget now comes from its diversified business activities. Business assets owned by the military are estimated to be worth up to 10 trillion (US$966.18 million).

Funds provided by the government, meanwhile, are largely spent on weapons purchases.

Endriartono said the TNI wanted to continue to rely on limited ventures as long as the government was unable to improve the livelihood of its soldiers.

Minister of Defense Juwono Sudarsono had previously said that he would issue a ministerial decree in October to determine the types and criteria of TNI businesses that must be handed over to the government.

None of the businesses should be sold or relinquished to private parties until the government finished taking over what it wanted, he said.

Endriartono, who has tendered his resignation from the military's top post, asked the House to seek a replacement, who was considered professional and would stay away from politics.

Under the law the government proposes the names of candidates for new TNI chief to the House for approval.

"The House will have the power to monitor and make sure that the new chief will not be influenced by any political pressures. Keep him on the right path," Endriartono said.