5-10-2023 (JAKARTA) President Joko Widodo of Indonesia highlighted the importance of modernizing military hardware while cautioning against excessive spending due to limited state budget resources. The Southeast Asian nation, home to 270 million people and boasting the region’s largest economy, aims to upgrade its military capabilities but has fallen behind its regional counterparts in recent years.
During an armed forces parade, President Jokowi emphasized the need for prudent spending in terms of both the amount and allocation of funds for military hardware. Defence Minister Prabowo Subianto, a potential presidential candidate who intends to succeed President Jokowi next year, has been leading several procurement initiatives. These include the acquisition of 42 Dassault Rafale fighter jets at a cost of US$8.1 billion (S$11.1 billion), the purchase of 12 new drones from Turkish Aerospace worth US$300 million, and the procurement of 12 Mirage 2000-5 fighter jets valued at US$800 million.
Earlier in July, President Jokowi urged his cabinet to maintain a fiscally responsible budget and expressed concerns over excessive spending by security agencies, including the Ministry of Defence.
According to data from the Stockholm International Peace Research Institute (SIPRI), Indonesia’s defence spending per capita and as a percentage of gross domestic product has been the lowest among the six emerging market economies in Southeast Asia over the past decade.
