TEMPO.CO, Jakarta - The government said that the budget raise for the National Army (TNI) would be adjusted to the state income growth. Coordinating Minister for Maritime Affairs Luhut Pandjaitan said that for the next two to four years, the government will raise the TNI budget up to Rp200 trillion.
Luhut said that the defense budget is currently set at 0.9% of the GDP. Soon, the allocation would be increased along with growing tax revenues.
According to Luhut, taxes contribute 83.1 percent to state revenues. Through fiscal reform, he believes next year's tax revenues will increase with a tax ratio of 11-12 percent.
"With this change, logically the budget for TNI can be increased to Rp150 trillion-Rp 200 trillion in the next two to four years. The budget will be allocated to improve welfare, education, and weapons by building a domestic defense industry," he said in a written statement on Wednesday, November 28.
To support the government's plan, Luhut said domestic stability was absolutely necessary. The minister said that one of TNI's main roles is to maintain national stability while promoting neutrality.