Ananda
The Bunker Group
Just to show how much is the budget really for procurement. This year budget for defense close to USD 8 bio. However less than 22% of that can be allocated for procurement. The rest is for maintanance and salary. The President currently try to increased the mordernisation effort, but with (example) USD 33 bio spend on fuel or energy subsidise alone, not much can be done to significatly increase the defense budget from now. They (the military) can considered lucky if manage to get 15% increase next year on current budget.
In short even if Indonesia manage to keep economic growth on 6%-7% for next decade, it will be hard to raise the budget from current 0.9%-1% of GDP. Unless something significant on region security environment changes. Next year is ellection year, thus more budget will be allocated for social project as vote getting measure, which are more or less the same situations in many countries during ellection year.
The President opening political salvo to opposition, which then can put the blame on them if next year mordernisation packages being halted in parliement due to political wrangling.
What current administrations more interested on defense is more on building capacity and capabilities of local defense industries. That's why increase cooperations with ROK in defense happen. Not because ROK provide better prices or quality, but more due to the effort in increasing local industries involvement in which ROK willing more to give.
In short even if Indonesia manage to keep economic growth on 6%-7% for next decade, it will be hard to raise the budget from current 0.9%-1% of GDP. Unless something significant on region security environment changes. Next year is ellection year, thus more budget will be allocated for social project as vote getting measure, which are more or less the same situations in many countries during ellection year.
The President opening political salvo to opposition, which then can put the blame on them if next year mordernisation packages being halted in parliement due to political wrangling.
What current administrations more interested on defense is more on building capacity and capabilities of local defense industries. That's why increase cooperations with ROK in defense happen. Not because ROK provide better prices or quality, but more due to the effort in increasing local industries involvement in which ROK willing more to give.