Tuesday, January 31, 2012
Government Sets Aside Rp 156 Tln for Main Armament System
Source: ANTARA News
Jakarta - The government will set aside Rp156 trillion in funds to procure the Indonesian military`s main armament system in the 2010-2014 period, a minister said.
"The budget allocations for minimum essential forces from 2010 to 2014 will reach Rp156 trillion consisting of Rp99 trillion under the 2010-2014 medium term development plan and Rp57 trillion from on-top allocations based on the directives of the limited cabinet session held on October 4, 2010," Finance Minister Agus Martowardojo said at a working meeting with the House of Representatives` Commission I for defence, information and foreign affairs here on Monday.
Also present at the meeting were Defence Minister Purnomo Yusgiantoro, National Development Planning Minister/National Development Planning Board (Bappenas) Chief Armida Alisjahbana and National Defence Forces (TNI) Chief Admiral Agus Suhartono.
The finance minister said Rp32.5 trillion of the Rp99 trillion would be spent on goods and Rp66.6 trillion on capital expenditure. The funds allocated for the capital expenditure would consist of US$6.5 billion from overseas loans and the rest from domestic loans.
National Development Planning Minister/National Development Planning Board (Bappenas) Chief Armida Alisjahbana said the new initiative for the procurement of the military`s main armament system worth Rp57 trillion had been set forth in Presidential Decree No. 35/2011 signed by President Susilo Bambang Yudhoyono on December 27, 2011.
"The budget funds will be allocated in stages, namely Rp7 trillion in 2010, Rp4 trillion in 2011, Rp6 trillion in 2012 and Rp40 trillion in 2013 and 2014. All of the budget allocations are adjusted to the capacity of the state budget and the prevailing mechanism," she said.
Agus Martowardojo said budget allocations for the Defence Ministry and the National Defence Forces in 2012 reached Rp72 trillion or higher than those for the Transportation Ministry which stood at Rp28 trillion and the Agriculture Ministry Rp17.8 trillion.
"The budget allocations indicate that the government is looking forward to catching up with other countries in terms of main armament system and promoting soldiers` welfare," he said.