The government and the House of Representatives’ budget committee agreed Thursday to allocate more funds to the Defense Ministry and the National Police in the revised draft of the 2016 state budget.
The ministry will get an additional Rp 6.6 trillion (US$499 million) while the National Police will get Rp 5.7 trillion from a total of Rp 18 trillion in additional expenditures for ministries and institutions.
Previously, the government allocated Rp 99.9 trillion and Rp 72.4 trillion for the Defense Ministry and the National Police, respectively, in the original draft state budget.
The additional expenditure of Rp 18 trillion will be sourced from higher revenues projected from the increase in the Indonesia Crude Price (ICP) assumption to $40 per barrel from a previous assumption of $35 and average oil production of 820,000 barrels of oil per day (bopd) from 810,000 bopd. It will also come from a lower budget deficit assumption of 2.35 percent from 2.48 percent set in the previous draft.
The Finance Ministry's director general for budgeting, Askolani, said the Defense Ministry needed to upgrade its primary weaponry system while the National Police were also in need of new equipment. The ministry had proposed almost Rp 100 trillion for the system upgrade during hearings with House Commission I overseeing legal, defense and security affairs.
"At least [the defense and security institutions] have deterrents [to threats]. We have to maintain Indonesia's dignity," he said after the hearing with the budget committee.
Twenty ministries and institutions will receive additional budget allocations, including the National Narcotics Agency (Rp 400 billion), the National Encryption Agency (Rp 950 billion) and the Attorney General’s Office (Rp 300 billion).