Indonesia sets 2022 defense budget at $9.3 billion
August 25, 2021
by Jon Grevat
The Indonesian government has announced a defense budget for 2022 of IDR 134.1 trillion ($9.3 billion) amid continued economic constraints caused by the Covid-19 pandemic.
The new appropriation represents a nominal 2% drop from the initial 2021 defense budget of IDR 136.9 trillion, but a 12% increase from the revised allocation for this year of IDR 120.1 trillion. ‘IDR, budget according to documents published by the Ministry of Finance (MoF).
Janes Defense Budgets projects real cuts to Indonesia’s defense budget in the near term. Growth is projected from 2025. (Janes Defense Budgets)
Military spending in 2022 represents 5% of total government spending for the year and about 0.7% of GDP. The budget cut in 2021 was the result of pandemic-related budget reallocations, the finance ministry said. Some of the defense funds were used to purchase vaccines, he said.
According to the Ministry of Finance, the increase in 2022 over revised 2021 spending is in line with an effort to “achieve the achievement of the Minimum Essential Force Strategy” (MEF), the term given to the modernization program of the Indonesian army.
He said defense budget priorities in 2022 include accelerating the purchase of defense equipment, maintaining and upgrading existing equipment, and improving military infrastructure.
Finance ministry documents show that ‘modernization’ projects – including supply and sustainment – will receive IDR 43.2 trillion in 2022, while funding for military personnel and welfare spending was allocated INR 12 trillion. Both are small increases from the initial allocations in 2021.
The rest of the funds in 2022 will be split between operations, infrastructure investment, research and development, and “defense resources.”
Already subscribed to Janes? Read full article via client login
Interested in subscribing, see what we are up to
The Indonesian government has announced a defense budget for 2022 of IDR 134.1 trillion ($9.3 billion) and…