The Indonesian Ministry of Defense is focusing on acquisitions to modernize the Army’s defense equipment and improve the Army’s readiness for defending the country’s sovereignty.
Defense Minister Prabowo has considered enhancing Indonesian external defense capabilities, since his appointment in 2019. He has been through 20 visits to 14 countries for the purpose of formulating a 25-year defense acquisition plan during his first 18 months as the Defense Minister. The Indonesian government has planned a budget of USD 125 billion for the next three years (until 2024), in order to upgrade and modernize the country’s military equipment. According to the plan, as it was outlined in a draft presidential decree, the government will spend USD 79.1 billion on military equipment, USD 13.4 billion in interest on 25-year loans from foreign sources, and USD 32.5 billion on maintenance and contingencies.
The country has considered a budget of USD 1.14 billion for purchasing the Russian-made fighter jet Sukhoi Su-35; however, had changed its decision to the United States-manufactured F-15 and French-made Rafale. Budget limitations have been stated as the main reason behind the change of purchasing plan.
The priorities on spending include strengthening the domestic defense industry, the communication system, intelligence, border security, and also guided munitions and air-defense systems. Indonesia also requires corvettes, marine patrol boats, submarines, maritime patrol aircraft and drones, radar units, considering geopolitical issues in the South China Sea and threats of abductions in waters near the southern Philippines.