TNI won't be involved in running businesses

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."