2018 State Budget: Ministry of Defence Remains a Priority

The Indonesian Ministry of Defense (Kemenhan) budget remains a government priority for enhancing its main defense equipment system (alutsista). Several AH-64E Apache attack helicopters from the United States and Leopard tanks from Germany will soon strengthen Indonesia's military arsenal.

In the 2018 State Budget (APBN), the Kemenhan's allocation decreased compared to the previous year. However, compared to other ministries, the Kemenhan's budget remains the largest. This year, the Kemenhan's budget reached Rp 107.7 trillion, lower than the previous year's Rp 114.2 trillion. However, it is higher than the Rp 105.7 trillion allocated in the 2018 Draft State Budget (RAPBN).

Overall, the budget for Ministries/Agencies (K/L) increased by 10.2% to Rp 847.4 trillion from the 2017 outlook. The second largest APBN 2018 allocation for K/L is for the Ministry of Public Works and Public Housing (PUPR) at Rp 107.4 trillion. The allocation for PUPR increased by 4.6% or Rp 4.7 trillion from the previous year.

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