2025 Defense Ministry Indicative Budget: Weapons Spending Increases by 52%

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Adi Ahdiat 21/05/2024 11:57 WIB

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According to the KEM PPKF document, the indicative budget for the Ministry of Defense will increase in 2025, particularly for defense modernization or weapons procurement.

Indonesian State Budget Allocation and Indicative Budget Ceiling for the Ministry of Defence per Program (2024-2025)

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2025 Defense Ministry Indicative Budget: Weapons Spending Increases by 52%

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Indonesian State Budget Allocation and Indicative Budget Ceiling for the Ministry of Defence per Program (2024-2025)

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The Ministry of Defence (Kemenhan) will receive an additional indicative budget ceiling in 2025.

This is evident from the *Macroeconomic Framework and Main Points of Fiscal Policy for 2025* (KEM PPKF) released by the Ministry of Finance in May 2024.

According to the Ministry of Finance, the indicative budget ceiling is a preliminary budget ceiling given to ministries/agencies as a guideline for preparing next year's work plan.

The "indicative budget ceiling" is formulated from a basic budget benchmark plus new initiatives, and will later become a "budget ceiling" after adjustments by the ministries/agencies.

Its status will then change again to "budget allocation" after discussion with the DPR (House of Representatives).

Based on the latest KEM PPKF, the indicative budget ceiling for Kemenhan's expenditure in 2025 is Rp155.98 trillion.

This represents an increase of approximately Rp16.7 trillion, or 12%, compared to the budget allocation in the 2024 State Budget (APBN).

However, this increase did not occur across all expenditure items. The items with the highest growth in their ceilings are Modernization of Main Weapon Systems (Alutsista), Non-Alutsista, and Defence Infrastructure (Sarpras Pertahanan).

In the 2024 APBN, the expenditure item for main weapon systems (alutsista) received a budget allocation of Rp43 trillion. In 2025, its indicative ceiling has surged by 52.3% to Rp65.5 trillion.

On the other hand, spending on the Professionalism and Welfare of Soldiers program decreased significantly. In the 2024 APBN, this item received a budget allocation of Rp12.37 trillion, while in 2025 its indicative ceiling decreased by 54.2% to Rp5.67 trillion.

Here is a breakdown of the percentage increase/decrease in Kemenhan's indicative budget ceiling in 2025 per program:

* Management Support Program: indicative ceiling increased by 2.2% (compared to the budget allocation in the 2024 APBN)
* Modernization of Alutsista, Non-Alutsista, and Defence Infrastructure Program: increased by 52.3%
* Professionalism and Welfare of Soldiers Program: decreased by 54.2%
* TNI Operational Task Program: decreased by 16.3%
* Defence Research, Industry, and Higher Education Program: decreased by 5.6%
* Defence Human Resource Development Program: decreased by 4.4%
* Defence Policy and Regulation Program: unchanged
* Total indicative budget ceiling for Kemenhan expenditure: increased by 12%

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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2025 Defense Ministry Indicative Budget: Weapons Spending Increases by 52%

2025 Defense Ministry Indicative Budget: Weapons Spending Increases by 52%

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2025 Defense Ministry Indicative Budget: Weapons Spending Increases by 52%

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