20% Increase for Indonesian Defense Budget in 2010

Source: Kompas, antara

President Susilo Bambang Yudhoyono said that government will increase defense budget 20% more than 2009 budget for 2010 fiscal year. This statement was released by president at delivery ceremony of 40 Pindad pansers in Bandung from PT Pindad to TN-AD, Friday, July 10, 2009.

rapat terbatas

“Started in 2010, our defense budget will increase significantly by adding Rp 7 T (US$ 700 M) from Rp 33.6 T (US$ 3.4 B) in 2009 to be Rp 40.6 T (US$ 4.1 B) for 2010,” said President.

He added,” Budget increase in 2010 will be a beginning of further defense budget increase year by year so that we close enough to minimum essential force that requires Rp 100-120 T (US$ 10-12 B), inline with Indonesian’s economy growth and wealth”.

President said that Indonesian government can not provide defense budget sufficiently in several years ago until this year because government still prioritizing on people/public prosperity. An increase in defense budget significantly must be benefited effectively, still pay attention to the priority, employ proper audit and prioritize the user’s need.

President said,” Defense is an expensive sector, so Indonesian armed forces must have strategic plan, blue print and clear road map every 5-year so that TNI posture can increase much better than now. Every country must have mismatch between the strategic objectives with defense capabilities and on other hand is available budget. That’s why we must talk a priority plan then”. A plan must be supported is using Indonesian indigenous product for main armament and only import it if there is no the required product inside the country. It has been done like 6 x 6 pansers that made by Pindad that supposed to save money Rp 1.5 T (US$ 150 M) compared if TNI buys pansers from VAB with relatively having same quality but with only half price of it.


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