Yuli Tri Suwarni, Bandung – The already cash-strapped defense ministry is set to lose another Rp 400 billion (US$43 million) from its budget because the government plans to use the money to help alleviate poverty in Indonesia.
"The government has never provided a sufficient budget for the defense sector, but I can accept the cut as it will be used to support... poverty alleviation," Defense Minister Juwono Sudarsono said Tuesday.
"The fund will be used in the health and education sectors, to increase export, create employment and help victims of the Sidoarjo mud flow."
There are some 34 million people living in poverty in Indonesia, with about 10 million unemployed.
During a defense seminar held by the Bandung Circle Community at the Padjadjaran University, Juwono said his ministry previously had a budget of some Rp 32 trillion – about 1 percent of Indonesia's gross domestic product (GDP).
He said the defense budget was already the second smallest in Southeast Asia, after Laos which provides 0.4 percent of the Laotian GDP. The largest is Brunei Darussalam with $6 billion, or 6 percent of its GDP. Indonesia's defense budget should be Rp 76 trillion, Juwono said.
The Indonesian Military (TNI) was crippled by a Western arms embargo after human rights abuses during operations in East Timor and other conflict areas. The embargo has been almost completely lifted, but the TNI has yet to fully recover and still relies heavily on old weaponry.
Juwono said, "Currently we are studying which expenses could be scrapped or reduced, including reducing the purchase of transport vehicles, defense systems and building materials that are rarely used". "We have always had limited weaponry but we always balance between operational readiness with maintenance costs."
Between the three services, Juwono said he would study the needs of the air force, army and navy to create a balance of expenses between those spent on transport vehicles and strike weaponry. But he said at the same time he would try to improve soldiers' welfare.
With regard to the defense cooperation agreement (DCA) with Singapore, Juwono said both countries were negotiating the number of military exercises Singapore could undertake in Indonesian territory.
He said they were discussing the Bravo Area as well as limiting the number and type of vessels involved in Singaporean exercises.
Bravo Area is a slot of Indonesian territory in Natuna regency, Riau Islands province, facing the South China Sea. Singapore is seeking use of the area for air force training, naval maneuvers and missile firing exercises.
In addition to Bravo Area, the controversial DCA also allows the Singaporean Armed Forces to use the nearby Alpha Area and the Baturaja training ground in South Sumatra.
The DCA and its four associated agreements were signed by the Indonesian and Singaporean governments on April 27 in Bali in the presence of President Susilo Bambang Yudhoyono and Singapore's Prime Minister Lee Hsien Loong. An extradition treaty was also signed.
"We have demanded (these) limitations to prevent the destruction of our marine environment," Juwono said. "We have to also consider our fishermen and the environment.
"This is a tough negotiation but we need it because we need the money to construct the training areas. "We have the space but we need the money."