In an attempt to improve its military force, the government committed on Monday Rp 99 trillion (US$11
n an attempt to improve its military force, the government committed on Monday Rp 99 trillion (US$11.2 billion) to spend on defense equipment until 2014.
National Development Planning (Bappenas) Minister Armida Alisjahbana said that from the total budget allocated, Rp 32.5 trillion would go to the maintenance of existing defense equipment, while the rest would be used to procure a new main weaponry systems.
“The Defense Ministry has put forward its shopping list and will coordinate with the finance minister now,” Armida told reporters after a closed meeting with President Susilo Bambang Yudhoyono in Jakarta.
Defense Minister Purnomo Yusgiantoro revealed that the budget needed would be financed by domestic and foreign loans and from the state budget.
“We agree that foreign loans must not burden us,” he said.
The meeting, which was only attended by several ministers, also plans to reduce the possibility of leaking the budget from the procurement by setting up a high-level committee.
“The committee, involving Finance Ministry, Bappenas and Defense Ministry, will supervise the procurement process. The committee will be chaired by the Defense Ministry deputy,” Purnomo said, adding that Yudhoyono would issue a presidential decree on the committee soon.
Previously, the President emphasized the importance of transparency and accountability in dealing with weaponry procurement projects, as the government allotted a larger budget this year.
“Every rupiah has to be accounted for. We need to ensure that the procurement of weaponry — worth trillions of rupiah — is really a necessity,” he said.
Indonesian Military chief Adm. Agus Suhartono has said the military would buy weapons for its primary defense systems that were made by local companies such as PT Pindad, PT Dirgantara Indonesia and PT PAL.
“If we have to import the weapons, we will try joint production with the selected country,” he said.
It was reported that the government planned to meet the
minimum essential force (MEF) by 2025. For this purpose, the ministry receives an increased state budget annually.
The government has allocated
Rp 64 trillion to the Defense Ministry in 2012, a significant increase from this year’s Rp 45 trillion.
The National Police will receive Rp 34 trillion next year, up from Rp 28 trillion this year.
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