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Defence Spending Can Bring Local Economies New Hope

Summary

In a recent article published by The Jakarta Post, our head of defence and research coordinator, Anastasia Febiola S., and our research assistant, W. Hario Widodo, highlighted the economic opportunities that local governments and communities could gather from defence spending. Ms. Febiola and M. Widodo argued that by selecting the most beneficial offset/ToT programmes – as mandated in the Law No.16/2012 – the government’s plan to revitalise its defence industry and modernise its National Armed Forces (TNI) could also bring investment opportunities that could eventually empower second to fourth tier defence companies at the local level, as well as generate tax incomes and employment opportunities for the regional authorities.

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