Indonesia

Defence

Indonesia’s latest “Defence White Paper”, the official State Document, that presents the policy of the Government for the Defence of the country, was official and publicly released on May 2016 and was the third Defence White Paper ever published, with the first and the second released in 2003 and 2008 respectively. The Indonesian “Defence White Paper” is an instrument of defence diplomacy for confidence building and conflict prevention among countries. The document is an important reference for the regional defence policy community to understand the future direction of Indonesia’s defence policy and military development.

This paper offers a comprehensive view of Indonesia’s defence grand visions of “Global Maritime Fulcrum (GMF)”, “Minimum Essential Forces (MEF)” and “Bela Negara” which comes about from Indonesia’s focus on various threats, that are increasing dynamic and varied.

The primary sources of concern for Indonesia are internal security, such as the current non active revolt movement in Aceh Province (Free Aceh Movement, active between 1976-2005), the on-going low-tension revolt at Papua Province (Free Papua Organisation, active since 1965) and non-traditional security challenges. In addition to that, Indonesia is concerned with external sources of security problems which is not formulated in the form of direct military invasion from abroad. Indonesia is concerned with the problems of unresolved territorial disputes with neighboring countries, resources security, border security and violation of Indonesia’s territorial sovereignty by other states. Finally, Indonesia is concerned in a lesser degree with the strategic implications of power shift among major powers regarding the future of the regional security architecture in East Asia.

The strategic outlook includes a recognition that traditional and non-traditional security issues and potential dilemmas arising from interstate competition in areas such as the South China Sea, the East China Sea and the Korean Peninsula, could have effects on the region. According to the new “Defence White Paper”, although Indonesia is not a claimant in the regional disputes, as an island nation with outstanding border issues, the country could be vulnerable.

The 2016 “Defence White Paper” of Indonesia, highlights six key issues regarding the defence policy of the country.

• It incorporates the notion of the “Global Maritime Fulcrum” (GMF) in defence planning. The GMF represents a national aspiration to redefine Indonesia’s geopolitical role as the gateway and gatekeeper of the interconnected Indian and Pacific Oceans. The paper encompasses the development of maritime defence with a focus on “green-water navy” capabilities. Furthermore, the new “Defence White Paper” includes the necessity to improve the military maritime surveillance system of the country. According to the Paper this will be achieved with an extensive procurement program that will involve the acquisition of Over the Horizon Radars, number of unmanned naval platforms and communication satellites. This program will promote national sovereignty and ensure navigation security.
• The new “Defence White Paper” also includes the commitment of the state to meet the “National Minimum Essential Forces (MEF)” by 2024. The concept of MEF was first articulated in the Presidential Decree No.7/2008 on the General Policy Guidelines on State Defence Policy, which came in effect on January 2008. The MEF is defined as “a capability based defence and force level that can guarantee the attainment of immediate strategic defence interests, where the procurement priority is given to the improvement of minimum defence strength and the replacement of outdated main weapon systems”. The Indonesian Government had drawn up the MEF which establish in military terms the number, scale, and nature of operational readiness and force structure that the country should be able to deploy a minimum. The implementation of the MEF started in 2010 and includes three phases. The first one was between 2010-2014, the second between 2015-2019 and the last one between 2020-2024. The target is Indonesia to spend for its defence 1.5-2% of its GDP.
• According to the “Defence White Paper” of 2016, the challenges that Indonesia will face will eventually be more complex. The country will have to deal with both traditional and non-traditional security challenges, (such as the confrontation of the Indonesian and Chinese Coast Guard within the Natuna Regency archipelago) conducted by state and non-state actors, with domestic and international origin. These challenges could be transnational crime, climate change and natural disasters. Bearing in mind the parameters mentioned above the Defence Policy of Indonesia is based on “Sistem Pertahanan Semesta” which means, combination of military and non-military strategy. The Defence Policy of the country calls for the involvement of all the available elements that the nation has, not only the Armed Forces but also the civilians in an attempt to establish a defence posture. At the new “Defence White Paper”, Indonesia presents itself as the region’s rising power by bringing up the grand vision of “Bela Negara” which means “Defending the State” from regional challenges and protecting the national interests of the country
• The new “Defence White Paper” assures the international community about Indonesia’s commitment to peace and stability. Regarding the use of military force, the Government of the country maintains an active defence strategy to deal with conventional threats. The doctrine of Indonesia avoids initiating war or using military forces against other countries. It undertakes offensive self-defence operations to defeat any external aggressions. The Government of the Indonesia relies on diplomacy as the country’s first option to defend the country.
• The “Defence White Paper” also includes the provision of an extensive defence program for the next 10 years. The country will give priority to the local construction, from the national defence industry of the weapon systems that is planning to buy in order to support the national economy. The defence industry should be strong, independent, and skillful to compete with other countries.
• Finally, the “Defence White Paper” of Indonesia promotes maritime diplomacy in order to prevent possible future conflict at sea. The balance of the military power in East Asia could be altered by the acquisition of new defence systems such as anti-access area denial systems, and anti-ballistic missile defence systems. Furthermore, the unresolved differences among the countries of the region over the islands and islet of South China Sea have been posing considerable challenges to maritime security and regional stability.

The new strategy policy of Indonesia aims less to confront other nations since Jakarta has no intention to prepare for war, but to protect the integrity and sovereignty of the country. On the contrary the new policy focus on dealing internal or non-traditional threats such as radicalism and terrorism. The Indonesian Defence Doctrine of the Archipelago is consisted of a three-stage war: a) An initial period during which the conventional military forces of the country will try to repel the enemy attack, b) in case the enemy is successful a long period of territorial guerrilla war will follow until c) the complete expulsion of the enemy forces with military acting as a rallying point for defence from grass roots village level upwards.

The Indonesia Defence Doctrine relies on a close bond between the villagers and the tactical Army to encourage the support of the entire population and enable the Indonesian military to manage all war related resources. In order to achieve this cooperation, the Government is planning to deliver quasi-military training to 100 million people through the state defence program till 2026. According to the Ministry of Defence of Indonesia, the National Defence Policy is implemented through multi-tasking efforts in the management of resources and national infrastructure in order to overcome various forms of threats. The National Defence Policy assists in developing Indonesia’s national defence, in line with its vision and mission namely: “Achieving of Indonesia to be sovereign and independent nation and has a strong character based on mutual cooperation”.

The vision and mission are actualized into seven missions:

• Achieving national security, which is able to maintain territorial sovereignty, sustain economic independence by securing maritime resources and reflect the character of Indonesia as an archipelagic country
• Achieving a developed society balanced and democratic nation based on law
• Achieving foreign policy which is non-aligned and strengthening its identity as a maritime country
• Achieving an advanced prosperous and high quality of life of the Indonesian people
• Establishing a competitive nation
• Achieving Indonesia as an independent maritime country, advanced powerful and based in national interests
• Building Indonesian people to have a strong character based on their own culture

The development of the national defence is needed in order to build a strong defence force with deterrent capability as an archipelagic and maritime country, so that Indonesia has a bargaining position in maintaining the sovereignty and territorial integrity, as well as the safety of the entire nation of Indonesia. The development of both military and non-military defence is organised in an integrated manner by referring to the national defence system.

The relocation of the capital of Indonesia from the island of Java to Kalimantan on the island of Borneo

The most recent development that is going to alter the existing status of the Armed Forces of Indonesia, is the decision of the Government to relocate the capital of the country from the island of Java to Easter Kalimantan, which is the part of the island of Borneo that belongs to Indonesia. The new capital would be partly in the Penajam North Paser Regency and partly in the Kutai Kartanegara Regency, both in East Kalimantan.

The relocation of the capital will be followed by the transfer of the Ministry of Defence of the country, the General Headquarters of the Armed Forces of Indonesia, along with its supporting staff and units such as the intelligence groups, military police and special forces. Furthermore, the Army will have to deploy to the island of Kalimantan a Cavalry Brigade, an Infantry Brigade and special forces units. Finally, the Army will establish a new Regional Command that will supplement the two existing Commands (KODAM).

The new Command will be the “Capital Security Regional Command (KODAM PIK)” and the total number of military personnel that will have to be deployed to the island of Kalimantan, is around 15,000. Eventually in addition to the forces mentioned above, three more Brigades will be deployed to the island of Kalimantan with 7,000-8,000 personnel. According to Army analysts, the relocation of the capital of Indonesia to the island of Kalimantan will eventually make the Armed Forces of the country to establish a new KODAM and its accompanying units for each of the five provinces.

The Navy of Indonesia will also have to move its headquarters to the new capital and the construction of new port facilities, new naval base, new naval airfield, and a new Division level Marine unit. The Air Force of Indonesia will have as well to relocate its headquarters create new major air bases and facilities.

Near to the new capital, the Air Force will have to build a new air base, where two aviation squadrons will be based. According to analysts’ part of the new 32 F-16V Block70/72 fighter jet will be based at the new military facilities. In addition to that, the Indonesian Air Force will have to establish new radar bases and air defence missile bases and a special forces battalion. The total cost of the relocation of the Armed Forces of Indonesia to the greater area around the new capital of the country is estimated to cost US$9 Billion which is the equal to the total defence budget of the country for the year 2019.

Defence Budget, Defence Procurements and Defence Procurements Policy

Although since the establishment of the state the Indonesian Governments, wanted to build powerful Armed Forces, the economy could not cope with the procurement budget needed for implementation of the proposed armament programs. According to the data published by the World Bank the defence budget of the country fluctuated between 1974 and 2001. Although during this period (1974-2001) the defence budget was kept below US$3 Billion with only one exception in 1998, when it peaked to US$3.23 Billion, the Indonesian defence budget reached and exceeded this threshold only ten years later in 2007.

This was achieved thanks to an continues increase of the defence budget since 2001, a policy that continued with some minor adjustment till 2013. During that year, the Indonesian defence budget reached US$8.34 Billion and the next year, in 2014 it literally collapsed to US$6.92 Billion. The following years and till 2019 the defence budget of the country fluctuate between US$7.63 Billion in 2015, to US$7.38 Billion in 2016, increased again to US$8.17 Billion in 2017, reduced once more to US$7.43 Billion in 2018 and reached US$7.66 Billion in 2019.

The target of the Government was to allocate US$9.26 Billion in 2020 for defence expenditure, increase the defence budget by 19.8% compared to 2019’s budget, bring the national defence budget to about 5% of the total government spending for that year and about 1% of the national GDP. The COVID-19 crisis altered the government plans and the national defence budget for 2020 will be probably settled to US$7.97 Billion. It is worth mentioning that the figures referred above exclude substantial off-budget funds received by the Armed Forces from a variety of sources including revenues from military-owned foundations and co-operatives, and the leasing of land from the private sector.

The size of these revenues is not known but are thought to be small as a percentage of overall military spending. Although the Government decided in 2019 to allocate more money for the defence of the country, the defence budget is still the lowest as a percentage of the DGP of Indonesia, compared to the other neighbouring countries which spend annually between 2% and 3% of their GDP on defence.

According to the President of Indonesia Joko Widodo, the country will increase its defence Budget and as he had announced in 2014 during his first presidential campaign, the target of his Government was to increase the military spending by 1.5% of the GDP by 2019.The increase of the defence budget of Indonesia is essential for the implementation of the long-term ambitious armament procurement program of Jakarta, initiated in order to create a military force-of-scale capable of meeting the minimum response required to deal with the variety of the strategic threats by 2024. During the first years of the existence of the Indonesian State the Armed Forces of the country used European weapons systems, but during the 1960’s Sukarno started buying Soviet and Eastern European weapon systems.

One of the basic principles of the long-term armament strategy of Indonesia since the 1990’s was and still is, the diversification of its weapon suppliers due to the variety of arms embargoes imposed by the traditional defence suppliers of Indonesia. This strategy aimed also to reduce the dependency of Indonesia on only one or two sources of armaments. The most important armament suppliers of Indonesia are France, U.S.A, Russia, Netherlands, U.K, Germany, and China. It is worth’s mentioning that Indonesia has a history of taking good deals and friendship prices regardless of the complications to its logistical support system of adding an additional source of armaments to its arsenal.

Among the procurement priorities of the Indonesia Ministry of Defence for the period 2020-2024 are:

• New fighter jets. Indonesia is planning to procure 32 F-16V Block 70/72 Fighting Falcon and 10 Su-35 fighter jets.
• The development of the future 4.5^th generation fighter jet of the country in cooperation to South Korea. The KF-X/IF-X development program was initiated in by Indonesia in 2010 when the country decided to participate to the program with 20% in return for one prototype design participation, technical data, and production sharing and South Korea with 80%. Indonesia is planning to buy 50 aircraft out of approximately 150-200 aircraft anticipated to be produced. Six prototypes will be ready in 2021 and will undergo four years of trials. The first test flight is expected in 2022 while the development process will be completed by mid-2026.
• New frigates. Plans for future local construction of up to 20 frigates type “Sigma PKR 10514” under license from DAMEN Schelde Naval Shipbuilding.
• New tanks, (Turkish-Indonesian Joint development and construction of the Harimau “Modern Medium Weight Tank”)
• New transport helicopters,
• New Danish made multiple purpose “Iver Huitfeldt-class” frigates. The frigate will be acquired as part of the MEF Phase 3 (2020-2024) with a budget of US$720 Million. The preliminary contract was signed in Summer 2020. The new ship will be a variant of the Danish class. The Danish shipyard “Odense Maritime Technology” will transfer know-how to PTPAL shipyards and the Navy’s Naval Design Centre. The two Indonesian frigates are expected to have different exterior design, subsystems layout of sensors and weapon systems although the basic design of the ships will be similar to the frigates that the Royal Danish Navy has.
• New submarines. Contract for the local construction of three new DSME 1400 submarines to supplement two existing old German-made Type 209/1200 submarines. The value of the shipbuilding program was US$1.07 Billion. Two of the submarines were built in South Korea and delivered in 2016–2017, while the third was built in Indonesia at PT PAL shipyards in Surabaya, East Java and delivered in April 2019. The DSME 1400 Batch 1 project, is an upgrade of the built under-license from Germany Type 209/1200 submarines with increased length (61.2 m) and displacement (1,400 tons underwater). Three more DSME 1400 Batch 2 will be built at PR PAL shipyards under a new contract signed in April 2019.
• Transport aircrafts, and
• Air defence systems.

Especially for the Navy, the “MEF 2020-2024” procurement program included a fleet of 300 ships of various classes and at least 12 submarines. The most recent projected and foreseeable acquisition program suggest a fleet in 2024 of a Striking Force of about 90 ships, a Patrolling Force of 42 ships, and a Supporting Force of 51 ships. In total 183 ships of various classes instead of the fleet of 274 ships that was proposed in 2005 at the “Green-Water Navy” strategic plan for securing Indonesian waters.

Indonesia also aims to ensure that its national defence industry is going to be involved in all military procurements. In order to implement the 2020-2024 armament procurement program Indonesia is expected to require substantial foreign loans and support its procurement program through countertrade with commodities such as palm oil and coffee.