JAKARTA – The Ministry of Defence has received the biggest 2020 State Budget allocation of Rp 131 trillion, up from last year’s budget of Rp 110 trillion.

In the 2020 Ministry of Defence National Leadership Meeting, Finance Minister Sri Mulyani Indrawati warned that defence equipment purchase must be carried out carefully and effectively, especially when foreign loans are involved. According to Ms Indrawati, various problems tend to arise from the use of foreign loans in defence equipment purchase.

“A lot of our defence equipment are purchased from many countries, and that requires thorough consideration and decision-making by the Ministry of Defence, the Commander [of the Armed Forces, Air Chief Marshal Hadi Tjahjanto], and the Chiefs of Staff [of each armed force component],” said Ms Indrawati as quoted from the Ministry of Finance’s official website, Monday (27/1).

“This requires a strategic decision in this institution. We will fully support whatever you may decide.” (MS)