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Indonesian military plans to spend $16.7 billion through 2015

Cadets from Indonesia's Military Academy march in a state ceremony. They are expected to benefit from the nation’s increased military spending. [Reuters]

Defense Minister Purnomo Yusgiantoro, supported by military leadership and funded with a $16.7 billion budget, is moving forward with a three-year plan to strengthen and modernize Indonesia’s military arsenal.

Indonesia is on the path to influence world affairs, according to analysts - an ambition that can be chronicled from the days of its 1945 declaration of independence from Dutch colonialism. At the current rate of development, Indonesia could become one of the world’s five largest economies before 2040 at the current rate of development, officials predict.

As the core of the Association of Southeast Asian Nations [ASEAN] community and Southeast Asia’s biggest country, Indonesia’s defense modernization is likely to position the country as the region’s chief military spender. And because of Indonesia’s path of reforms toward democratic consolidation, observers say the emerging military power of the country should be of no concern for potential destabilization.

The dramatic shift of the Indonesian defense policy comes after a 10-year hiatus on military spending hindered by a shortage of funds as the country focused on economic growth and development initiatives. The 2012 increase represents 30 percent of the country’s national budget. The Indonesian Air Force and Navy are expected to be the greatest beneficiaries of the increased defense budget.

Indonesian President Susilo Bambang Yudhoyono said the growth in the defense budget is intended to “strengthen the military posture, so that the mission to safeguard the sovereignty and integrity of the Indonesian territory can succeed.”

Plans for the military build-up includes the purchase of a guided missile destroyer, tanks, multiple launch rocket systems, fighter jets, submarines and other military arsenal.

Arms developed domestically and purchased abroad will contain the latest technology. The modernization strategy comes with a high price tag: $2.5 billion for 10 light frigates developed by the state ship manufacturer PAL; $2 billion for four submarines; and $6 billion for the addition of Sukhoi and F16 jet fighters.

The budget also is meant to cover the non-arms requirements related to national defense, including activities aimed at improving the welfare of the soldiers and civil servants in the Indonesian armed forces.

The budget will focus on the purchase of domestic products, Yugiantoro said. If the domestically produced materials are not available, foreign manufacturers will be used with the condition of using joint production methods. In addition, the import of foreign products will be monitored to ensure benefits to Indonesia.

The state’s High Level Committee [HLC] will provide oversight controlling the monitoring and acceleration of defense sector expansion through 2014, the defense minister said.

The HLC, chaired by the vice minister of defense, will include representatives from several government divisions including finance, planning, audit and the special government body responsible for the purchasing of goods and services.

“The main objective of this control team is from the start of the planning phase as well as during the implementation phase to monitor the financing and purchasing for the defense sector” Vice Defense Minister Sjafrie Sjamsoeddin said.

Air Force adding 17 squadrons

The military build-up includes an impressive inventory. For the Indonesian Air Force: 64 Sukhoi fighter jets; 32 F16 fighter jets; 36 Hawk 100/200 fighter planes; 12 F5E fighter jets; 16 Super Tucano fighter planes; 16 Yak 130 fighter planes; 36 UAVs; and 64 Hercules transport planes.

Navy adding 3 fleets

Three fleets will be added to the Indonesian Navy consisting of the Western fleet headquartered in Tanjung Pinang, Natun and Belawan. The Central fleet will be headquartered in Surabaya, Makassar and Tarakan. The Eastern fleet will be headquartered in Ambon, Merauke and Kupang. Moreover, the number of active Marines will be increased to 60,000, stationed in various bases. The Marines will be supported with 350 BMP 4F tanks; 17 amphibian tanks; 320 armored amphibious vehicles; 800 QW3 missiles; 40 RM Grads; and 75 Howitzers. Additional inventory includes 32 frigates; 56 corvettes; 82 missile-armed rapid deployment ships; 87 rapid deployment patrol ships; six submarines; and 48 logistic and transport ships.

Army additions include tanks, missiles

The Army, as the land component for Indonesia’s armed forces, has an estimated force of 180,000, a Cavalry Brigade, a strategic reserve and other units that have been involved in operations since the country’s struggle for independence.


The increased budget brings an inventory of the following: three divisions of strategic commandos; 150 battalions of strike forces; 200 main battle tanks to be deployed in Kalimantan and West Nusa Tenggara; 540 armored vehicles made by Pindad for the mechanical infantry battalions; 320 cannon-armored vehicles; 890 cannons and howitzer artillery; 720 NDL missiles; 20 MI35 fighter choppers; 26 MI17 transport choppers; 1,300 anti-tank missiles; 60 new anti-aircraft missiles; and 700 Pindad-Lapan type strategic missiles.





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