Indonesia has postponed its plan to buy two submarines for the Navy until at least 2011, citing financial constraints, Antara state news agency reported.
“Despite the 20 percent increase in the defense budget for 2010, we can’t afford to procure major weaponry such as submarines and jet fighters. The budget increase will be allocated for maintenance,” director general of defense equipment at the Ministry of Defense Rear Marshal Eris Herryanto said in Yogyakarta on Wednesday.
He said the government would continue scrutinizing proposals from manufacturers and select the tender winner. “But the purchase will not happen until 2011,” Eris said on the sidelines of the Air Force anniversary celebration.
The government opened a tender for the procurement of two submarines between 2010 and 2014. Germany, South Korea, Russia and France have been touted as potential tender winners.
President Susilo Bambang Yudhoyono proposed a 20 percent increase in the defense budget following a string of fatal accidents involving the country’s aging military hardware.
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