http://thejakartaglobe.com/home/rejuvenated-sby-vows-to-up-defense-spending/317495

July 11, 2009 
Nivell Rayda

 
Susilo Bambang Yudhoyono has pledged to raise the defense budget 21 percent to 
help modernize the nation's Armed Forces. (Photo: Rumgapres)



Rejuvenated SBY Vows to Up Defense Spending
If a signal were needed to illustrate President Susilo Bambang Yudhoyono's 
strengthening of purpose since his overwhelming electoral victory, there is no 
better example than his sudden promise on Friday to lavish trillions more on 
next year's defense budget.

Announcing that the military budget would swell next year by Rp 7 trillion 
($693 million) from Rp 33.6 trillion for 2009, he called recent years' spending 
insufficient as the government had been focusing on people's welfare.

"Year after year, we will gradually increase the military budget, so we will be 
getting closer to the optimum budget requirement of Rp 100 trillion to 120 
trillion," he said, adding that given current economic growth he was confident 
the goal could be achieved. According to state news agency Antara, he said the 
starting point was the 21 percent rise next year.

The stretched defense budget has been criticized as the source of several 
recent military airplane and helicopter crashes across the country, 
particularly the crash of an Air Force Hercules C-130 in Magetan, East Java, on 
May 20, killing 101 people.

Budget shortfalls have also been blamed for the country's weak border controls. 
Indonesia has struggled to secure its vast territory, an issue again thrown 
into the spotlight early last month when the Armed Forces said a Malaysian 
warship violated Indonesian territory in Ambalat waters off East Kalimantan.

The main issue is the military's shoddy safety record, which has increasingly 
been a source of national embarrassment. In mid-June, Yudhoyono ordered the 
Defense Ministry to conduct an audit of budget shortfalls and a technical 
inspection of the Armed Forces.

Two days later, the House of Representatives budgetary committee agreed to 
raise defense spending by 8.5 percent, or Rp 2.8 trillion. The figure was 
immediately criticized by Defense Minister Juwono Sudarsono, who said it was 
far less than he had expected.

But Finance Minister Sri Mulyani Indrawati said shortly afterward that she had 
no objection to raising defense spending by as much as Rp 10 trillion as long 
as budget discipline was observed. Yudhoyono's new pledge makes such a hike 
much more likely.

Shortly before his remarks on Friday, Yudhoyono had a closed-door meeting with 
Juwono, State Secretary Hatta Rajasa and Cabinet Secretary Sudi Silalahi to 
discuss a blueprint for modernizing the Armed Forces.

"The military must make an assessment of our strategic environment, 
particularly the opportunities and threats," Yudhoyono said. "Our defense 
systems, equipment and logistical needs must meet those assessments. 

"There will of course be a mismatch between our requirements and available 
funds in budget. That's why the next step that the military must take is to 
prioritize its needs."

Any budget increases would have to be accompanied by greater transparency, 
efficiency and accountability in the use of those funds, he said.

"I have instructed the military and the defense minister to use the budget 
effectively and to be judicious in its spending," he said.

The president urged the military to cooperate with the government, local 
industries and research and development institutions in modernizing the 
country's defense capabilities.




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