Indonesia Allocates USD 9.3 Billion for 2022 Defense Budget

Aug 2021

The Indonesian government has revealed a 2022 defense budget of IDR 134.1 trillion (USD 9.3 billion). According to the Ministry of Finance, the number reflects a 12% increase compared with the allocation of IDR 120.1 trillion (USD 8.3 billion) for the 2021 budget. The 2022 military expenditure makes up 0.7% of GDP.

The increase of the 2022 budget is aimed to support the country’s military modernization program, or more commonly known as the ‘Minimum Essential Force (MEF) strategy”, in stages. Priorities for the budget are directed for the purchase of defense equipment, maintenance and upgrade of existing materiel and enhancement of the military infrastructure.

In terms of allocation, the majority of the budget will fund ‘modernization’ projects such as procurement and sustainment (USD 3 billion), followed by military personnel expenses and welfare (USD 0.83 billion). The remaining funds are used for operations, infrastructure investment, research and development as well as defense resources.

(Sources: Jane’s; Kompas)

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