Indonesia Defense Acquisition Program 2025-2029

[Indos]

Indonesia proposes IDR165 trillion defence budget for 2025​

2024-08-20




Indonesia has proposed a 2025 defence budget of IDR165.2 trillion (USD10.6 billion). Budgetary documents issued by the Ministry of Finance on 16 August show that the new budget would amount to a near 6% decline on the expected final defence expenditure in 2024 of IDR175.1 trillion. However, this final expenditure for 2024 marks a significant increase over the original allocation for that year.

The documents said the “strategic outputs” of the 2025 defence budget, which accounts for about 6% of total government expenditure for the year, include military procurement and sustainment, soldier welfare, and strengthening defence facilities particularly along maritime and land borders.

The defence budget for 2025 includes IDR80.4 trillion for ‘management support' including operations, IDR10 trillion for soldier welfare, IDR69 trillion for military procurement, and IDR1.6 trillion for defence research, development, and industry.

The documents said defence procurement will be framed by Indonesia's “fulfilment of the Minimum Essential Force (MEF) programme”. The MEF programme was initiated in 2010 and was originally scheduled to conclude in 2024.

Earlier phases of the programme were focused mainly on tackling the country's long-running local insurgency. The current phase, which started in 2020, is intended to shift emphasis towards a two-pronged defence posture: continuing to strengthen internal security and bolstering external territorial defence.

However, funding constraints have impacted previous phases of MEF likely reflecting the requirement outlined in the budget documents to continue the project.

Funding constraints have also impacted one of Indonesia's most high-profile programmes: its engagement with South Korea on developing the KF-21 fighter aircraft. On 16 August South Korea announced that Jakarta had reduced its funding commitment to the programme, from USD1.1 billion to USD450 million.

Indonesia proposes IDR165 trillion defence budget for 2025

Indonesia has proposed a 2025 defence budget of IDR165.2 trillion (USD10.6 billion). Budgetary documents issued by the Ministry of Finance on 16 August show that the new...

www.janes.com

 

[Indos]

Prabowo Gets to Spend $230 Billion on First Year in Office​

Jayanty Nada Shofa

August 16, 2024 | 4:10 pm


Jakarta. President Joko “Jokowi” Widodo has proposed a government budget of Rp 3,613.1 trillion (around $230 billion) in 2025, which will be his successor Prabowo Subianto’s first year in office.

About Rp 2,693.2 trillion of the planned spending will be central government expenditure. The archipelagic Indonesia will transfer around Rp 919.9 trillion to the sub-national governments. Jokowi said these transfers sought to narrow the gap between the different regions in the country.

“We will allocate Rp 722.6 trillion for education. The money will go to improving school children's nutritional status and renovating schools,” Jokowi said in his annual budget speech to the parliament on Friday.

Prabowo’s inauguration ceremony is slated for Oct. 20. Earlier that day, Jokowi said that he looked forward to passing the leadership baton to Prabowo. While Prabowo promised the continuity of Jokowi’s programs, the ex-army general is synonymous with his plan of feeding all Indonesian school children free lunches.

“The free nutritious meal program should improve children’s nutritional status, while also empowering the micro, small and medium enterprises [MSMEs]. It should also give a boost to the small community’s economy in the rural areas,” Jokowi said.

Prabowo Gets to Spend $230 Billion on First Year in Office

Jokowi has proposed a government budget of around $230 billion for 2025, namely Prabowo's first year in office.

jakartaglobe.id

Government Allocates Rp 525 Trillion for Subsidies in 2025 Draft State Budget​

Arnoldus Kristianus

August 16, 2024 | 11:07 pm


Jakarta. The Indonesian government has designated Rp 525 trillion ($33.45 billion) for subsidies and compensation in the 2025 Draft State Budget (APBN), according to Finance Minister Sri Mulyani Indrawati. The budget will be split between energy subsidies and compensation and non-energy subsidies.

Energy subsidies and compensation will receive Rp 394.3 trillion, a 17.8 percent increase from the Rp 334.8 trillion allocated in 2024. This funding will support subsidies for 3-kilogram LPG canisters, diesel fuel, and kerosene, as well as electricity for low-income households and an equitable energy transition.

Non-energy subsidies are allocated Rp 131.3 trillion, up 35.5 percent from this year's Rp 96.9 trillion. These funds will enhance food security, including a subsidy for up to 9 million tons of fertilizer, and assist low-income families in acquiring homes with a target of accelerating the construction of 1 million homes. “New targets may be set by the incoming administration,” Sri Mulyani noted.

Additionally, non-energy subsidies will ease credit access for micro, small, and medium enterprises (MSMEs), farmers, and fishermen, and provide tax incentives for businesses.

The 2025 State Budget deficit is projected at 2.53 percent, amounting to Rp 616.2 trillion, with state revenue estimated at Rp 2,996.9 trillion and expenditure set at Rp 3,613.1 trillion.

Outgoing President Joko "Jokowi" Widodo has proposed a total government budget of Rp 3,613.1 trillion for 2025, marking the first year of his successor Prabowo Subianto's administration. Of this, Rp 2,693.2 trillion will be allocated to central government expenditure, while Rp 919.9 trillion will be transferred to sub-national governments to address regional disparities.

Key allocations include Rp 722.6 trillion for education, Rp 197.8 trillion for health, Rp 400.3 trillion for infrastructure, Rp 124.4 trillion for food security, and Rp 504.7 trillion for social protection.

Government Allocates Rp 525 Trillion for Subsidies in 2025 Draft State Budget

The Indonesian government has designated Rp 525 trillion ($33.45 billion) for subsidies and compensation in the 2025 Draft State Budget

jakartaglobe.id

 

[Indos]

Indonesia nominal GDP projection by IMF for 2025 is 1.61 trillion USD

https://www.imf.org/external/datamapper/profile/IDN

With 10.6 billion USD Defense Budget for 2025 than its figure keep decreasing in percentage to the total GDP into 0.65 % from GDP, last year it is about 0.7% of GDP

Indonesia will likely keep having one of the lowest defense expenditure in the world (relative to its GDP) during 2025-2029 period.

 

[ety]

There are rumors report that Indonesia might be interested in acquiring Chinese type 052D destroyer ?

 

[Indos]

There are rumors report that Indonesia might be interested in acquiring Chinese type 052D destroyer ?

I will try to update about the 2025-2029 defense acquisition program. Currently many defense acquisition from 2020-2024 that is not proceeded due to several reasons, one of them is due to the cut from Finance Minister. We can see clearer in next year, particularly in July 2025.

 

[Indos]

The defence budget for 2025 includes IDR80.4 trillion for ‘management support' including operations, IDR10 trillion for soldier welfare, IDR69 trillion for military procurement, and IDR1.6 trillion for defence research, development, and industry.​

Indonesia proposes IDR165 trillion defence budget for 2025

Indonesia has proposed a 2025 defence budget of IDR165.2 trillion (USD10.6 billion). Budgetary documents issued by the Ministry of Finance on 16 August show that the new...

www.janes.com

1.6 trillion Rupiah = (105 million USD). It is likely for KF21/IFX program cost share installment. It is larger than 80 million USD cost share payment Indonesian Defense Ministry allocated for this year (2024).

 

[Indos]

https://twitter.com/x/status/1828349872744882176

 

[Indos]

NAVY

 

[Raiden]

There are rumors report that Indonesia might be interested in acquiring Chinese type 052D destroyer ?

And Chinese 039C as well.

But very slim prospect.

 

[Indos]

InshaAllah

 

[Indos]

Turkish defense industry's move to Indonesia!

Within the scope of the Signing Ceremony held in Indonesia; ASELSAN signed strategic agreements regarding the SARP Remote Controlled Stabilized Weapon System, CENK 4D Search Radar, Artillery Fire Control System and Missile Data Link, while ROKETSAN signed strategic agreements regarding the SUNGUR Air Defense Missile System, ÇAKIR Cruise Missile and MAM-L Mini Smart Munition.

Additionally, important Memorandums of Understanding (MoUs) were signed on unmanned surface vehicles, tank modernization and maintenance of missile systems.

https://twitter.com/x/status/1828051382936473951