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Govt delays procurement due to budget cuts

The Defense Ministry has put off procurement plans for primary defense weaponry (alutsista) because the Finance Ministry has called for austerity amid an economic slowdown

The Jakarta Post
Jakarta
Thu, August 25, 2016

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Govt delays procurement due to budget cuts

T

he Defense Ministry has put off procurement plans for primary defense weaponry (alutsista) because the Finance Ministry has called for austerity amid an economic slowdown.

Defense Minister Ryamizard Ryacudu said the plan to procure military equipment had to be postponed.

“We have to scale down our planned expenses by postponing the procurement of some weapons. This is the second budget revision after the first budget cut when we lost Rp 2.8 trillion [US$211 million],” he said after attending a state defense program at the National Monument in Central Jakarta.

He assured that the current cut would not heavily affect the military’s performance in guarding and maintaining the nation’s stability because urgent procurements would be made a top priority.

“Weapons that aren’t so important will be procured in the next period. Hopefully our economic condition will improve in the near future,” he said.

He added that although his ministry had to tighten its belt on spending and scale down expenditures, the welfare of military personnel would be guaranteed.

“The most important thing is the welfare of the people. Military personnel are part of society and they work for society as well. That’s our priority,” he said.

The budgetary adjustment comes amid plans to strengthen the presence of the military at the country’s borders to ease escalating tensions from transnational crimes such as drug smuggling and piracy.

The military also faces challenges within the country’s territorial boundaries. Indonesia is confronting a resurgence of radical and separatist movements.

Earlier this month, Army chief of staff Gen. Mulyono said he would prioritize rejuvenating weapons to mitigate existing and potential threats and to strengthen security at the country’s borders.

The areas deemed in dire need of military improvement include regions in four outer islands; Natuna in the Riau Islands, Morotai in North Maluku, Biak in Papua, and Selaru in Southeast Maluku.

Al Araf, a military observer with the Imparsial, said the ministry had to optimize the available budget by avoiding any corrupt practices during procurement.
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“The most important thing is the welfare of the people. Military personnel are part of society and they work for society as well.”

The lecturer on strategic studies at Jakarta-based Al-Azhar University and Paramadina University added that procurements involving third parties or brokers were prone to manipulation, such as in the purchase of the Russian-made Sukhoi jet fighters, which was widely alleged to have contained irregularities.

He went on to say that the ministry might need to look to the domestic industry to obtain the weapons due to the lower prices. Domestic purchases would also support local industries.

“Although not all military equipment is available from the domestic industry, we can minimize spending by utilizing domestic sources,” he said.

The Defense Ministry is also expected to build a maritime defense system that supports the government’s vision of transforming the country into a global maritime axis. (fac)

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