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January 6, 2023
Observer: Budget Limitations and Ineffective Planning Hinder TNI Modernisation
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Defence IndustryJAKARTA, KOMPAS – The modernisation of the primary weapons systems of the Indonesian National Armed Forces (TNI) remains a priority across all service branches to counter potential defence threats. However, budget constraints and slow planning processes have hindered these efforts.
On January 3, 2023, Defence Analyst of PT Semar Sentinel Indonesia, Fauzan Malufti, stated that modernisation is an urgent necessity for the TNI. Besides enhancing capabilities, modernisation is essential to address emerging threats near Indonesia’s territories, such as tensions in the North Natuna Sea.
Nevertheless, the modernisation of defence equipment has not been implemented effectively, particularly within the framework of the Minimum Essential Force (MEF), which is now in its third phase. The key obstacles include budget limitations and an inconsistent procurement strategy, with frequent changes in the selection of replacement weaponry.
“The third phase of MEF is currently at approximately 60% completion, and it seems unlikely to reach 100% by 2024. Budget constraints remain a challenge, particularly as this is an election year, with potential reallocations of funds to address economic recession risks. Ideally, the defence budget should be 1.5% of the gross domestic product (GDP), yet we are still at around 0.8%,” M. Malufti explained.
An example of ineffective planning is the selection process for replacing the F-5 Tiger fighter jets. The government has shifted between various options, from the Sukhoi Su-35 and the F-15EX before ultimately settling on the French-made Dassault Rafale, scheduled for delivery in 2026. However, negotiations for additional replacements for the F-5 Tiger are still ongoing.
The frequent shifts in procurement choices are not solely due to slow planning but also geopolitical considerations. The delays in decision-making have resulted in postponed orders, thereby extending the wait for the arrival of the new equipment. Some defence platforms require years of construction before they are ready for deployment.
In undertaking modernisation, the government must adopt a selective and comprehensive approach, particularly regarding ageing equipment. According to M. Malufti, not all outdated weaponry requires immediate replacement, as some can still be upgraded.
“For instance, the F-16, despite being over 30 years old, can still undergo upgrades. However, older naval vessels, such as the Ahmad Yani and Parchim-class ships of the Indonesian Navy (TNI AL), should ideally be replaced. This could be done gradually, given their significant numbers and continued operational reliance,” he explained.
Moreover, the modernisation programme under MEF, set for completion between 2023 and 2024, faces challenges due to the political climate. M. Malufti warned that modernisation efforts could stall as both the government and parliament shift their focus towards electoral activities. To ensure successful completion, strong political and financial commitments from both the government and the TNI are required.
On a separate occasion, the Head of Information for the Indonesian Army (TNI AD), Brig. Gen. Hamim Thohari, explained that discussions regarding modernisation targets and achievements within the Army are still being conducted internally and are expected to be presented at the upcoming TNI leadership meeting. “We will provide further updates after next month’s leadership meeting,” said M. Thohari.
Modernisation Plans
In the naval sector, modernisation and personnel capacity-building are key priorities for the newly appointed Chief of Staff of the Indonesian Navy (KASAL), Adm. Muhamad Ali. He has outlined four strategic priorities for his tenure, beginning with the development of human resources.
For M. Ali, enhancing the capabilities of Indonesian Navy (TNI AL) personnel is the foremost priority. This aligns with the vision of the Commander of TNI, Adm. Yudo Margono, who, during his parliamentary fit-and-proper test, emphasised improving personnel welfare and skill development.
“The operational effectiveness of any organisation ultimately depends on the competence of its human resources,” M. Ali stated in a written statement from Jakarta on December 30, 2022.
The second priority is the modernisation of the TNI AL’s weaponry. Such upgrades are essential to strengthening the operational capabilities of the Indonesian Navy in responding to threats and challenges. In 2023, the TNI AL is set to receive new defence assets, including the hospital support vessel Dr Radjiman Wedyodiningrat-992, which is soon to be handed over by PT PAL Indonesia. This ship will enhance the TNI AL’s humanitarian operations across Indonesia.
“Modernisation and maintenance of defence equipment must yield tangible results, ensuring they can be deployed as needed,” M. Ali emphasised.
The third priority focuses on improving naval base facilities, including both infrastructure and operational support systems. He noted that upgrading base facilities is crucial for supporting naval operations, particularly in border regions. Capacity expansion is also necessary as the TNI AL integrates new units that have been relocated but still lack adequate facilities.
The TNI AL has also undergone organisational restructuring, with the establishment of the Republic of Indonesia Fleet Command (Koarmada RI) under Presidential Regulation No. 66/2019 concerning the Organisational Structure of the Indonesian National Armed Forces. Koarmada RI serves as the principal operational command overseeing three fleet commands: Koarmada I, Koarmada II, and Koarmada III.
In a recent move, on December 5, 2022, the TNI AL relocated Koarmada I headquarters from Jakarta to Tanjung Pinang City, Riau Islands. This decision was made due to security concerns in the region.
The fourth priority is enhancing logistics support systems and operational management. M. Ali stressed that successful missions and operations require effective operational management and thorough evaluations to assess strategic effectiveness. Additionally, he called on all TNI AL personnel to align their vision and efforts to ensure the successful implementation of these priorities.
In the air force domain, the Indonesian Air Force (TNI AU) is set to bolster its fleet with the acquisition of Lockheed Martin C-130J Super Hercules transport aircraft, expected to arrive in 2023. “We will receive the C-130J in early 2023,” said Chief of Staff of Indonesian Air Force (KASAU), ACM Fadjar Prasetyo.
In addition to the C-130J, Indonesia is considering to procure Airbus A400M transport aircraft from France. However, discussions regarding this purchase are still under review by the Ministry of Defence. The TNI AU also plans to expand its fleet of CN-235 transport aircraft at Air Squadron 27, based at Manuhua Air Force Base in Biak Numfor Regency, Papua, which was established four years ago.
“The A400M deal is still under discussion at the Ministry of Defence. I believe this aircraft is highly capable, given its large cargo capacity, which would significantly enhance the Air Force’s airlift capabilities. The A400M can conduct a direct flight from Halim Perdanakusuma Air Force Base (Jakarta) to Jayapura Regency or Jayawijaya Regency while carrying up to 40 tonnes of cargo,” M. Prasetyo added (Kompas.id, 7 December 2022).