TNI won't be involved in running businesses
Tiarma Siboro, The Jakarta Post, Jakarta
The Ministry of Defense says it will ban servicemen from being involved in the management of businesses owned by the Indonesian Military (TNI) in order to achieve the goal of creating a professional defense force.
Secretary-general of the Ministry of Defense Lt. Gen. Sjafrie Sjamsoeddin said on Wednesday that the ministry would set tighter criteria for the selection of management personnel in military businesses to prevent soldiers from being involved in running of these enterprises.
"Law No. 34/2004 on military reform compels the military to avoid involvement in business activities, but in a move to support the reform plan, the military, both as institution and as individuals, will not be allowed to be involved in the management of the companies even if the government allows the armed forces to retain the companies," Sjafrie said.
He made the comments amid reports that the government has decided to take over only 12 of the more than 200 business units managed by cooperatives and foundations under military control. Critics said that this ran counter to the ongoing reform drive within the military, which is supposed to be fully free from any involvement in business activity.
Sjafrie said that the ministry would also "stick to the laws on cooperatives and foundations that bans (these types of organizations from) profit-oriented business activities".
He said that businesses under the military would only be allowed to operate to help improve the welfare of soldiers.
Improving the welfare of soldiers has been the key issue to be resolved by the cash-strapped government.
On Wednesday, Sjafrie officially submitted a report of the military's business entities, which are managed by 219 cooperatives and foundations, to the office of the State Minister of State Enterprises for further verification.
Earlier, an official from the Office of the State Minister of State Enterprises Muhammad Said Didu said the government would allow the military to continue operating hundreds of business units, particularly those that did not utilize state assets.
Didu further said the government understood that many of the TNI companies had the aim of "improving soldier's welfare, rather than seeking profit."