Who Controls US$124.9 Billion Arms Spending?


The Defense Ministry is formulating a draft Presidential Regulation (Perpres) on the 2020-2024 arms and military devices procurement. The document contains the budget requirements for arms spending from 2021 to 2044, reaching up to US$124.99 billion or Rp 1,750 trillion.

The ministry’s Director General for Defense Strategy, Major General Rodon Pedrason, confirmed that the upcoming Presidential Decree would regulate arms spending, partially funded by foreign loans. He assured that these loans would not affect the state budget because it would be paid in installments according to the annual budget allocation. They would come from countries that could provide loans with a tenor of more than 20 years and an interest rate of less than one percent. Meanwhile, the State Secretary, Pratikno, said that he had accepted the draft, but some ministries were still reviewing it.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.