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.