Prabowo Will Produce Defense Equipment In The Country With The IDR 1,700 Trillion Budget
JAKARTA - Defense Minister Prabowo Subianto and his staff held a working meeting with Commission I of the Indonesian House of Representatives (DPR RI). The meeting discussed the Ministry of Defense's plan to buy domestic weapons other than imports.
"Of course we will involve the domestic defense equipment system with the Ministry of SOEs. The defense equipment or defense equipment that we have to buy from abroad, of course, we have to import, but what we can buy and produce domestically, we produce domestically", said Defense Minister spokesman Prabowo Subianto, Dahnil Anzar Simanjuntak at the DPR building, Jakarta, Wednesday, June 2.
He said that the Defense and Security Equipment Tools (Alpalhankam) spending for the next 25 years will be spent in 2020-2024 so that Indonesia can have a capable defense system and keep up with technological developments.
"Discussed with National Development Planning Agency (Bappenas), Ministry of Finance, Ministry of SOEs, because it includes technology transfer, so nothing is final or no decision has been made. And that will be submitted to the President to become a Presidential Regulation Meeting (Raperpres) after these discussions", said Dahnil.
It is known that the Ministry of Defense plans to buy the main equipment for the National Army (TNI) weapon system (alutsista) for a period of 5 Strategic Plans or 25 years which reaches USD 124 billion or equivalent to IDR 1.773 Trillion which is leaked in public.
The plan is contained in the draft Presidential Regulation on Alpalhankam for 2020-2024.
In the draft of Presidential Regulation (Perpres) concerning the Fulfillment of the Need for Defense and Security Equipment Tools of the Ministry of Defense and the Indonesian National Armed Forces for the year 2020-2024 (Alpalhankam), Article 2 paragraph (1) states that the minister prepares the need planning (Renbut) for Alpalhankam Kemhan and TNI to 5 (five) Strategic Plans for the Year 2020-2044, whose implementation will begin in the Strategic Plan 2020-2024 and require Multiple Strategic Plans for financing and procurement.
In Article 3 paragraph 1 it is stated that the Renbut for the Defense and Security Affairs Ministry/TNI as regulated in Article 2 paragraph 1 amount to USD 124.995 million.
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The details of the budget are explained in Article 3 paragraph 2, namely:
a. For the acquisition of Alpalhankam amounting to USD 79.099.625.314.
b. For fixed interest payments for 5 Strategic Plans of USD 13.390.000.000.
c. For contingency funds as well as the maintenance and care of Alpalhankam amounting to USD 32.505.274.686.
Article 3 paragraph 3 explains that from the budget requirement of USD 124.995 million, USD 20.747.882.720 has been allocated in the List of Special Medium-Term Foreign Loan Plans for 2020-2024.
Article 3 paragraph 4 explains the difference from Renbut in the amount of USD 104.247.117.280 which will be fulfilled in the 2020-2024 Strategic Plan.