INDONESIA, BEEFING UP DEFENSE, SEEKS SUBMARINES AND JETS
JAKARTA (Bloomberg): Indonesia's defense minister said the country plans to buy submarines, fighter jets and frigates in a shopping spree stretching from Russia to the Netherlands.
The world's largest archipelago plans to buy two new German submarines next year, doubling its fleet, and four Dutch frigates within three years, Defense Minister Juwono Sudarsono said in a Tuesday interview in Jakarta.
Indonesia, which owns four Russian-made Sukhoi fighters at $45 million each, will buy a further six over the next four years.
The government, which also owns six F-16 jets, is considering asking London-based BAE Systems Plc, Europe's largest weapons maker, to recondition Indonesia's eight Hawk fighters, Sudarsono said.
Indonesia, which emerged from military dictatorship in 1998, is updating its aging arsenal amid pressure from Asian neighbors and the U.S. to tackle piracy in the Malacca Strait and other coastal waters. Sudarsono, who called the purchases "the bareessential," is buying the weaponry even as he says his defense budget can't cover a soldier's minimum wage.
"It's a reflection of the international concern," said Bruce Gale, a Singapore-based independent political risk consultant who has studied Southeast Asia since 1988. "Indonesia has seen a lot of pressure from the U.S. to do something about the Malacca Strait. The navy does need to be boosted. Whether they can afford it is another question."
Indonesia's defense budget may swell to as much as US$3 billion next year from $2.6 billion this year, Sudarsono said. He's relying on economic growth over the next decade to boost government revenue and fund additional equipment purchases.
Indonesia expects the economy to expand 6.3 percent next year from 5.9 percent in 2006.
"You can't have a powerful military if you don't have a powerful economy," Sudarsono said. "It's nothing threatening, just enough to maintain what we call minimum essential force. We must provide some degree of deterrent."
Though the government is likely to choose German submarines, it's also considering South Korean and Russian boats, he said.
Indonesia, which bought its current pair in 1980, needs a fleet of eight to patrol its waters properly, he said.
Pirate attacks on ships rose to 61 in the first three months of the year from 56 a year earlier, according to the International Maritime Bureau. Indonesia accounted for almost one third of the attacks, the group said. Indonesia, made up of about18,000 islands, neighbors Malaysia, Singapore, the Philippines, Papua New Guinea, East Timor and Australia.
Indonesian is also in talks with China and South Korea about developing jointly a missile-carrying patrol boat, Sudarsono said. South Korea may supply radar and communications equipment, he said.
Spending on border defenses won't necessarily bolster the military's logistical capacity, which is used to respond to natural disasters. An earthquake on May 27, the worst tragedy since the 2004 tsunami, killed 5,782 people in the central Java region. Floods and landslides over the past week killed at least 180 people on the island of Sulawesi.
Sudarsono said he plans to spend 70 percent of future defense budgets on equipment to improve the military response to such catastrophes, adding planes, trucks and logistical supplies. He plans to add as many as seven C-130 Hercules transport planes,which can carry aid or troops. Indonesia currently has dozens of the aircraft but only eight operational.
"We anticipate in the next five to 10 years there will be more earthquakes, natural disasters and volcano eruptions, so our defense will be on focused on providing immediate and timely relief," Sudarsono said.
The world's largest archipelago plans to buy two new German submarines next year, doubling its fleet, and four Dutch frigates within three years, Defense Minister Juwono Sudarsono said in a Tuesday interview in Jakarta.
Indonesia, which owns four Russian-made Sukhoi fighters at $45 million each, will buy a further six over the next four years.
The government, which also owns six F-16 jets, is considering asking London-based BAE Systems Plc, Europe's largest weapons maker, to recondition Indonesia's eight Hawk fighters, Sudarsono said.
Indonesia, which emerged from military dictatorship in 1998, is updating its aging arsenal amid pressure from Asian neighbors and the U.S. to tackle piracy in the Malacca Strait and other coastal waters. Sudarsono, who called the purchases "the bareessential," is buying the weaponry even as he says his defense budget can't cover a soldier's minimum wage.
"It's a reflection of the international concern," said Bruce Gale, a Singapore-based independent political risk consultant who has studied Southeast Asia since 1988. "Indonesia has seen a lot of pressure from the U.S. to do something about the Malacca Strait. The navy does need to be boosted. Whether they can afford it is another question."
Indonesia's defense budget may swell to as much as US$3 billion next year from $2.6 billion this year, Sudarsono said. He's relying on economic growth over the next decade to boost government revenue and fund additional equipment purchases.
Indonesia expects the economy to expand 6.3 percent next year from 5.9 percent in 2006.
"You can't have a powerful military if you don't have a powerful economy," Sudarsono said. "It's nothing threatening, just enough to maintain what we call minimum essential force. We must provide some degree of deterrent."
Though the government is likely to choose German submarines, it's also considering South Korean and Russian boats, he said.
Indonesia, which bought its current pair in 1980, needs a fleet of eight to patrol its waters properly, he said.
Pirate attacks on ships rose to 61 in the first three months of the year from 56 a year earlier, according to the International Maritime Bureau. Indonesia accounted for almost one third of the attacks, the group said. Indonesia, made up of about18,000 islands, neighbors Malaysia, Singapore, the Philippines, Papua New Guinea, East Timor and Australia.
Indonesian is also in talks with China and South Korea about developing jointly a missile-carrying patrol boat, Sudarsono said. South Korea may supply radar and communications equipment, he said.
Spending on border defenses won't necessarily bolster the military's logistical capacity, which is used to respond to natural disasters. An earthquake on May 27, the worst tragedy since the 2004 tsunami, killed 5,782 people in the central Java region. Floods and landslides over the past week killed at least 180 people on the island of Sulawesi.
Sudarsono said he plans to spend 70 percent of future defense budgets on equipment to improve the military response to such catastrophes, adding planes, trucks and logistical supplies. He plans to add as many as seven C-130 Hercules transport planes,which can carry aid or troops. Indonesia currently has dozens of the aircraft but only eight operational.
"We anticipate in the next five to 10 years there will be more earthquakes, natural disasters and volcano eruptions, so our defense will be on focused on providing immediate and timely relief," Sudarsono said.
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