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Jakarta Post

Defense budget management key to military transformation

  • Annisa Yudha and Anton Aliabbas

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PREMIUM
Jakarta   /   Tue, November 5, 2019   /  12:28 pm
Defense budget management key to military transformation A huge defense budget does not necessarily translate into a stronger national defense system because of two problems that have consistently stood between the Defense Ministry and effective use of its budget allocation. (JP/Wahyoe Boediwardhana)

The 2020 state budget allocates Rp 131.2 trillion (US$9.26 billion) for defense, up 19.8 percent from 2019. For the second time in the Reform Era, defense spending outweighs expenditures on other sectors like education and infrastructure. However, whether the rise in military spending will significantly impact the modernization of the weaponry system remains to be seen. Nevertheless, the bigger budget shows that President Joko “Jokowi” Widodo, a civilian, pays great attention to the defense sector. The 2020 defense budget accounts for 0.75 percent of projected gross domestic product (GDP) that year, which is estimated to be Rp 17.46 quadrillion. Indeed, the 2020 defense budget remains far below Jokowi’s ambitious figure of 1.5 percent of GDP. Since taking office in 2014, Jokowi has consistently increased defense spending, except in 2018 when the government took au...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.