Southeast Asia & Oceanian Affairs- Copy to clipboard
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- Jan 26, 2024
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1998.
In 2022, the government ordered 42 Dassault Rafale fighter jets for $8.1 billion, and it most recently completed orders for the last 18 jets in January 2024.
In August 2023, the government signed a memorandum of understanding with Boeing to acquire 24 F-15EX jets, and it also placed orders for Sikorsky S-70M Black Hawk helicopters.
The Defense Ministry also signed a contract to buy a $100 million submarine rescue vessel from the United Kingdom, and it’s reportedly in talks for two more Scorpene submarines from France’s Naval Group.
While President Joko Widodo last year approved approximately 139.3 trillion rupiahs (U.S. $8.9 billion) in defense spending for 2024 — a 20% increase from the prior budget — the government still needs more to meet its military modernization goals.
And the country appears to be falling behind. Under its Minimum Essential Force policy, the government is to complete a list of military upgrades and asset procurements the end of the presidential term, which is October 2024.
As of September 2023, the Air Force had met 51% of its goals, the Army 60% and the Navy 76%, according to Evan Laksmana, Southeast Asia military expert with the International Institute for Strategic Studies think tank.
The problem, Koh said, is that while Indonesia did list specific assets and capabilities under its policy, it had not provided enough specifications for planners to further the country’s goals.
Furthermore, Indonesia’s pivot to naval and air modernization might cause an uproar in the Army, which has traditionally received the lion’s share of the budget pie. The Army has been clamoring for artillery and land systems amid Russia’s ongoing invasion of Ukraine, Koh said.
“The Air Force will have a tougher time these days and in the future when it comes to competing with funding with the Army,” he explained.
For example, Indonesia reportedly scrapped a deal to buy 12 used Dassault Mirage 2000-5 jets from Qatar to replace its retiring F-5 fleet. Public backlash pushed the government to abandon the plan days ahead of the Feb. 14 presidential election.
Indonesia is also behind on payments for a joint program with South Korea. The countries agreed to co-fund the KF-21 Boramae fighter jet program.
When asked for an update, Sangshin Park, a regional manager for KF-21 manufacturer Korea Aerospace Industries, told Defense News: “We also don’t know what’s going to happen, and we’re still waiting.”
Orders and hiccups
Indonesia has pivoted toward naval and air modernization efforts. In 2021, it signed a deal with Airbus realted to A330 Multi Role Tanker Transport aircraft, anti-submarine and transport helicopters, and A400M transport planes. The helicopters are already in service, and the Defense Ministry finalized orders for two A400M aircraft in January. The A330 acquisition remains under discussion, company officials told Defense News.In 2022, the government ordered 42 Dassault Rafale fighter jets for $8.1 billion, and it most recently completed orders for the last 18 jets in January 2024.
In August 2023, the government signed a memorandum of understanding with Boeing to acquire 24 F-15EX jets, and it also placed orders for Sikorsky S-70M Black Hawk helicopters.
The Defense Ministry also signed a contract to buy a $100 million submarine rescue vessel from the United Kingdom, and it’s reportedly in talks for two more Scorpene submarines from France’s Naval Group.
While President Joko Widodo last year approved approximately 139.3 trillion rupiahs (U.S. $8.9 billion) in defense spending for 2024 — a 20% increase from the prior budget — the government still needs more to meet its military modernization goals.
And the country appears to be falling behind. Under its Minimum Essential Force policy, the government is to complete a list of military upgrades and asset procurements the end of the presidential term, which is October 2024.
As of September 2023, the Air Force had met 51% of its goals, the Army 60% and the Navy 76%, according to Evan Laksmana, Southeast Asia military expert with the International Institute for Strategic Studies think tank.
The problem, Koh said, is that while Indonesia did list specific assets and capabilities under its policy, it had not provided enough specifications for planners to further the country’s goals.
Furthermore, Indonesia’s pivot to naval and air modernization might cause an uproar in the Army, which has traditionally received the lion’s share of the budget pie. The Army has been clamoring for artillery and land systems amid Russia’s ongoing invasion of Ukraine, Koh said.
“The Air Force will have a tougher time these days and in the future when it comes to competing with funding with the Army,” he explained.
For example, Indonesia reportedly scrapped a deal to buy 12 used Dassault Mirage 2000-5 jets from Qatar to replace its retiring F-5 fleet. Public backlash pushed the government to abandon the plan days ahead of the Feb. 14 presidential election.
Indonesia is also behind on payments for a joint program with South Korea. The countries agreed to co-fund the KF-21 Boramae fighter jet program.
When asked for an update, Sangshin Park, a regional manager for KF-21 manufacturer Korea Aerospace Industries, told Defense News: “We also don’t know what’s going to happen, and we’re still waiting.”
