The Jakarta Globe, Jun 23, 2014
Jakarta. Indonesia is preparing to receive the first batch of armored vehicles it procured from Germany — from an order of 164 units — as the archipelagic nation strives to meet its minimum essential force requirement amid rising tensions in the region.
A total of 52 combat vehicles, consisting of 26 Leopard main battle tanks and 26 medium-sized Marder infantry fighting vehicles, will be shipped from the city of Unterluss following a brief ceremony early this week, which will be attended by Sjafrie Sjamsoeddin, Indonesia’s deputy defense minister, and Gen. Pramono Edhie Wibowo, retired Army chief of staff.
Pramono said he initiated the deal to purchase the 164 German combat vehicles — inked last year — before retiring.
“We will be in Unterluss to oversee the final preparations — including technical inspections and testing — involved in shipping the Leopard tanks to Indonesia,” Pramono said in a statement on Sunday before departing for Germany.
The former general declined to give the exact expected delivery date for the first batch of combat vehicles, but mentioned they would be arrive in time to be displayed in Jakarta for the Indonesian Military’s (TNI) anniversary on Oct. 5.
The purchase is part of the government’s larger plan to modernize Indonesia’s aging military equipment and weaponry — an overhaul that was last carried out over 30 years ago.
“Indonesia has fallen behind in terms of armory, even compared to several of our Asean neighbors,” Pramono said, referring to the Association of Southeast Asian Nations, of which Indonesia is a leading member. “We have been relying on light tanks, such as Scorpions and AMX-13, which are getting on in years.”
Germany had given defense firm Rheinmetall the green light in 2012 to export 104 Leopard 2 tanks, 50 Marder 1A2 infantry fighting vehicles and 10 other military carriers — including armored recovery vehicles, mobile bridges and military engineering vehicles — to Indonesia, German news portal Spiegel Online reported.
According to Indonesian officials, the initial agreement for 130 tanks was valued at $280 million, while Rheinmentall’s press released placed the figure at 216 million euro, or $293.7 million. The deal includes training sessions, logistical support services and an initial supply of practice and service ammunition.
The deliveries are scheduled to be concluded between 2014 and 2016.
President Susilo Bambang Yudhoyono launched strategic plans in 2010 to help Indonesia meet its minimum essential force (MEF) — an effort to revamp the country’s aging weaponry and military equipment. Under the program, the country’s military procurement plans are divided into three phases — the first stretching from 2010 to 2014 — until the MEF is reached, which is targeted for 2024.
The archipelago’s domestic defense industry will also be fostered to grow under the program.
The Ministry of Defense has been among the largest recipients of government funds over the past several years. In addition to the annual budget, which amounted to Rp 86 trillion ($7 billion) this year, the government has also allocated some Rp 156 trillion toward modernizing military equipment throughout 2014.
Nevertheless, Indonesia only spent 0.8 percent of its gross domestic product on defense in 2012. Though the figure adds up to a substantial amount of money in real terms, the spending still pales in comparison to those of Indonesia’s regional peers.
The ideal budget, according to Sjafrie, would be 1 percent to 2 percent of GDP, which is the amount being spent by many of the world’s developing nations.
The deputy defense minster said he hopes Indonesia is able to reach that level of spending by 2024.
After dedicating more than $15 billion to building the country’s defenses system since 2010, Indonesia has managed to reach 40 percent of its MEF — well above phase one’s goal of 30 percent, Defense Minister Purnomo Yusgiantoro said.
Achieving these goals, he added, are crucial for tackling security challenges of the 21st century, with the global security focus shifting from the Middle East to the Asia-Pacific region, where disputes over resource-rich areas have continued to escalate, involving major players such as China, Vietnam and the Philippines.
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