Indonesia's Military Spending Increases, but Remains Below 1% of GDP

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Adi Ahdiat 28/12/2023 13:03 WIB

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Indonesia's government spending on defense or military expenditure reached Rp150.28 trillion in 2022. This is equivalent to 0.77% of the total current price GDP.

Realization of Central Government Spending for Defense Functions and its Ratio to GDP (2004-2022)

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Indonesia's Military Spending Increases, but Remains Below 1% of GDP

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Realization of Central Government Spending for Defense Functions and its Ratio to GDP (2004-2022)

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Based on the Central Government Financial Report (LKPP), Indonesia's government spending on defense or military expenditure in 2022 reached Rp150.28 trillion.

This spending includes procurement of military goods and services, production of main weapon systems (alutsista) by domestic industries, development of the defense industry, and support for personnel of the Indonesian National Armed Forces (TNI) across the army, navy, and air force.

Indonesia's military spending in 2022 increased by approximately 19% compared to 2021 (year-on-year), setting a new record high.

However, its ratio to the Gross Domestic Product (GDP) is relatively small.

According to the World Bank's definition, the "ratio of military expenditure to GDP" is a rough indicator of how much of a country's resources are used for military activities.

In 2022, Indonesia's military expenditure ratio reached only 0.77% of the total Current Price GDP, which was valued at Rp19.588 trillion.

Looking back, since 2004, Indonesia's military expenditure ratio has never reached 1% of GDP, as shown in the graph above.

This ratio is relatively low compared to neighboring countries.

The Stockholm International Peace Research Institute (SIPRI) noted that in 2022, Singapore's military expenditure ratio to its GDP reached 2.8%, Thailand 1.2%, the Philippines 1%, and Malaysia 0.96%.

However, according to the World Bank, this ratio does not necessarily reflect a country's military capabilities or defense strength.

The World Bank assesses that defense strength is also influenced by various other factors, such as the extent of a country's border area that needs to be protected, the quality of relations with neighboring countries, and the role of the military in national political institutions.

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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Indonesia's Military Spending Increases, but Remains Below 1% of GDP

Indonesia's Military Spending Increases, but Remains Below 1% of GDP

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Indonesia's Military Spending Increases, but Remains Below 1% of GDP

Indonesia's Military Spending Increases, but Remains Below 1% of GDP

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