Markus Junianto Sihaloho – With the country preparing for elections and the military calling for a budget increase, the government has decided to accelerate the spending of 2004-09 state credit funds of about $1.2 billion on new weapons and equipment.

Defense Minister Juwono Sudarsono told reporters on Tuesday that he had discussed the plan on Monday night with the head of the National Development Planning Board, or Bappenas, Paskah Suzetta, Finance Minister Sri Mulyani Indrawati and Military Chief Gen. Djoko Santoso.

"Bappenas said the expenditure is urgently needed to accelerate the export-credit process," Juwono said. "In the Defense Ministry, we have $1.22 billion in state credit funds for the 2004-09 period that should be spent this year." He added that the funds would be used to buy a variety of equipment including armored vehicles, aircraft from Poland, missiles for the Air Force and a submarine.

However, the government had also decided to review the procurement plans, particularly those related to weapons. For example, it was likely to buy only 40 armored vehicles, jointly produced by French company Renault and local manufacturer PT Pindad, though it had previously intended to buy 150.

"We are also reviewing the plan to buy a submarine from Russia, because now we also have offers from South Korea and Germany," Juwono said. Indonesia had earlier planned to buy Russian military equipment, including two submarines, on a $1 billion state credit line.

Indonesia has been trying to diversify its sources of weapons and military equipment since the US Congress introduced an embargo following violence surrounding East Timor's 1999 self- determination vote. The US Congress regarded the Indonesian military as playing a role in the escalating violence. The embargo was lifted in late 2005.

The military has asked the government for more funding to help cover its operating costs, citing its fuel budget shortage.

Juwono said the government was still calculating the proper amount of fuel needed by the Military. "Now the task is to convince Finance Minister Sri Mulyani and her staff that we urgently need additional fuel for operations, which we would not misuse as has occurred in the past," Juwono said.

Navy Chief Adm. Tedjo Edhy Purdijatno earlier said he was concerned that the Navy's operations, such as search and rescue efforts and disaster relief, would be halted because of fuel-budget shortfalls and an outstanding Rp 4 trillion ($336 million) debt to state oil and gas company PT Pertamina.

He said Pertamina had refused to supply additional fuel to the Navy until the debt was paid. During a formal hearing last week with House Commission I, which oversees defense, he also said the Navy had proposed that the government allocate Rp 533 billion for fuel supplies every three months.

But the 2009 defense budget provides only 16.8 percent of that amount. The budget shortfall presented serious risks, Tedjo said, and could result in an increase in illegal activities in the country's waters.