Budget hike targets military modernization amid rising geopolitical tensions.
JAKARTA – Indonesia’s defence spending is set to rise by 20% in 2024, a move approved by outgoing President Joko Widodo to address the nation’s military hardware needs amidst escalating geopolitical tensions. Finance Minister Sri Mulyani Indrawati announced the increase on Wednesday (Nov 29) during a press conference.
The approved defence budget will grow from US$20.75 billion to US$25 billion, following discussions between President Widodo, Defence Minister Prabowo Subianto, and Indrawati. This decision aligns with Indonesia’s efforts to bolster its military capabilities.
Geopolitical and Security Dynamics
The defence ministry justified the increase as necessary to address aging military equipment and to prepare for evolving geopolitical threats. “The rising threats and changing geo-security dynamics necessitate these upgrades,” said Sri Mulyani.
Despite the immediate boost, the total defence budget for the broader 2020-2034 period will remain capped at US$55 billion, reflecting adherence to Indonesia’s medium- and long-term fiscal strategies. Sri Mulyani added that the funding for these upgrades will be sourced through foreign loans.
Ongoing Military Modernization Efforts
Defence Minister Prabowo Subianto, a leading candidate in Indonesia’s February presidential elections, has overseen significant procurement efforts. These include deals for:
42 Dassault Rafale fighter jets for US$8.1 billion.
12 drones from Turkish Aerospace valued at US$300 million.
12 Mirage 2000-5 fighter jets for US$800 million.
24 transport helicopters from Lockheed Martin (price undisclosed).
This strategic focus on upgrading military assets underscores Indonesia’s commitment to regional security and preparedness.
As Indonesia positions itself amid rising geopolitical challenges, the increased defence budget is a clear signal of its intent to modernize and fortify its military infrastructure.
