APSN Banner

Home Indonesia Aceh West Papua East Timor

Indonesian Navy struggles with $191 million fuel debt, budget cuts

Jakarta Globe - April 29, 2025

Yustinus Paat, Jakarta – Indonesian Navy Chief of Staff Admiral Muhammad Ali revealed that the Navy (TNI AL) is grappling with a Rp 3.2 trillion (approximately $191 million) fuel debt to state energy company Pertamina, a burden that he says is disrupting naval operations across the archipelago.

Speaking during a session with Commission I of the House of Representatives (DPR) on Monday, Ali said that the Navy had previously owed Rp 2.25 trillion for fuel, which has since grown due to additional unpaid obligations.

"For fuel alone, our resources are already very limited. Previously, we had arrears of Rp 2.25 trillion, and now it's Rp 3.2 trillion in total outstanding debt," he said during the Working Committee on Maritime Security meeting at the DPR complex in Senayan, Jakarta.

He urged the government to consider writing off the debt to ensure operational readiness. "This situation is highly disruptive to our operations. We hope the fuel debt can be resolved, ideally eliminated," Ali said.

Ali added that naval ships continue to consume fuel even when docked, as their diesel engines must stay on to power essential onboard systems such as air conditioning. "If the ACs are shut down, electronic systems could be damaged and that's the risk," he explained.

The Navy's operational woes come amid significant budget cuts across the Indonesian defense sector. The Defense Ministry is facing a Rp 26.99 trillion cut from its 2025 budget allocation of Rp 166.2 trillion. However, personnel spending remains unaffected by the cuts.

Each military branch is feeling the impact:

  • The Army (TNI AD) saw its budget slashed by Rp 5.16 trillion, reducing its allocation from Rp 57.1 trillion to Rp 51.9 trillion.

  • The Navy (TNI AL) experienced a Rp 6.07 trillion cut, leaving it with Rp 18.3 trillion from an initial Rp 24.4 trillion.

  • The Air Force (TNI AU) faced a Rp 3.63 trillion reduction, bringing its budget down from Rp 16.3 trillion to Rp 12.6 trillion.

These reductions follow President Prabowo Subianto's directive to trim government spending in 2025, with a nationwide savings target of Rp 306.6 trillion across ministries and institutions.

Source: https://jakartaglobe.id/news/indonesian-navy-struggles-with-191-million-fuel-debt-budget-cut