Can't find what you're looking for?
View all search resultsCan't find what you're looking for?
View all search resultsIndonesia must prepare for some of its neighboring countries having closer affinity with one of the competing powers.
ecently, the government sparked controversy with a plan to allocate nearly US$125 billion for defense procurement, including interest payments and maintenance costs. Such an allocation is designed to fulfil defense procurement until 2024.
On the one hand, the proposed figure seems to provide plenty of procurement options. On the other hand, the plan triggered a debate as the government has not yet sketched out the utilization of such a gigantic procurement budget. Others have voiced their concern over the additional financial debt that the government must bear for years to come.
Despite the debate and the realization of the arms-purchasing plan, procurement strategy should not be fixated only on the domestic realm. The international setting is another factor that in reality heavily influences defense policy, including defense acquisition.
The renewed United States-China global competition must surely affect Indonesia’s procurement plans. The US Senate recently passed the Endless Frontier Act, which allocated more than $110 billion to develop new technologies, such as artificial intelligence, semiconductors and biotechnology. Quelling China’s rising competitiveness in the technology race was the key narrative that justified the passing of the act.
Back in March, US Secretary of State Antony Blinken stated that Washington might approach China in a competitive, collaborative or even adversarial manner depending on the situation.
The question then is what the possible impact of this renewed Washington-Beijing rivalry will be on Indonesia’s defense procurement.
We can at least ponder two possible implications that may appear following the renewed strategic competition between the US and China. The first is limited defense procurement sources.
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.
Quickly share this news with your network—keep everyone informed with just a single click!
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Get the best experience—faster access, exclusive features, and a seamless way to stay updated.