Revised Indonesian budget brings modest increase


Indonesia’s revised budget for 2017 includes a further marginal increase in defence expenditure to IDR109.3 trillion (USD8.17 billion), a 1.2% increase over the approved budget and a 4.6% boost compared with the draft budget.

According to accompanying information released by the Indonesian Finance Ministry on 6 July, the additional funding will be used to finance satellite lease payments and to support Indonesia’s involvement in the United Nations MINUSCA peacekeeping operation in the Central African Republic.

More generally, the 2017 defence budget is expected to continue to progress towards meeting the goals of the ‘Minimum Essential Force’ (a concept aimed at delivering Indonesia’s minimum force structure and operational readiness requirements), to improve border security and to support the local defence industry.

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