Indonesia expands military as defence budget soars


The reorganisation underscores the growing role of South-East Asia’s largest military under President Prabowo Subianto. -- PHOTO: REUTERS

JAKARTA (Bloomberg): Indonesia has created more than 20 regional commands in its biggest armed forces overhaul in decades, coinciding with a sharp increase in defence spending under President Prabowo Subianto and mounting concerns over growing military influence.

Prabowo, a former general, inaugurated new commands for the army, navy and air force on Sunday to mark the largest reorganization since the era of the authoritarian ruler Suharto, when the military maintained an extensive territorial network that reached into every province.

"The world is full of uncertainty, and even if we dislike war, wars are happening everywhere,” Prabowo said alongside senior commanders and political allies at a ceremony near of the city of Bandung.

"Indonesia does not want to take sides,” he added. "But because of that, there is no other choice. Indonesia must have a very strong defence.”

The move underscores the growing role of South-East Asia’s largest military under Prabowo, who, since taking office last year, has successfully backed legal changes to allow more active-duty officers in civilian posts, appointed retired officers to lead state enterprises, and expanded the military’s reach into civilian programs - including his signature free meals program.  

The military says the changes will bolster security along borders and conflict-prone regions.

Critics warn it could strain public finances and revive military influence in civilian affairs, a hallmark of Indonesia’s authoritarian past.

The expansion comes at a time when spending by Indonesia’s defense ministry is expected to rise to 247.5 trillion rupiah ($15.2 billion) this year, a nearly 50% increase from its initial allocation, the finance ministry said recently.

The higher budget will be used to fund the modernization of defence equipment and infrastructure, it added.

The new commands effectively expand the military’s reach across the world’s fourth-most populous nation.

The army gained six units in resource-rich and strategically sensitive regions from the Malacca Strait to the eastern border with Papua New Guinea, bringing its total to 21. The navy added 14, while the air force added three. 

--With assistance from Grace Sihombing. -- ©2025 Bloomberg L.P.

 

 

 

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