Indonesia becomes the second-largest military spender in Southeast Asia. (Photo: thejakartapost.com)Jakarta (VNA) – With a total defence budget of 8.8 billion USD in2023, Indonesia becomes the second-largest military spender in Southeast Asia,following Singapore, according to data and analytics company GlobalData.
The country’s militaryexpenditure is forecast to reach 9.7 billion USD by 2028.
GlobalData’s latest report, “Indonesia Defense Market Size and Trends, BudgetAllocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast,2023-28,” reveals that the country’s cumulative defence spending isanticipated to touch 46.6 billion USD during the 2024-2028 period, out of whichthe acquisition budget share is estimated to be approximately 28.4%, amountingto 13.3 billion USD. The defense acquisition expenditure is expected toregister a compound annual growth rate (CAGR) of 1.5% over 2024-2028 and reach 2.7billion USD by 2028.
Abhijit Apsingikar, Aerospace& Defense Analyst at GlobalData, said that Indonesia’s defencebudget is majorly driven by the need to mitigate natural disasters andundertake military modernisation initiatives.
The country is looking to expand its defence posture as well as augment itsindigenous defence manufacturing industrial complex through militarymodernisation initiatives, while improving capacity in response to security andterrorism threats.
Over the 2018-2023 period, Indonesia carried out several defence deals to modernizeits air force fleet, including the acquisition of 42 Dassault Rafale as well as24 F-15ID multirole strike fighters. The country also invested in modernisingits air lift capability, and signed a contract to acquire two units of the A-400MAtlas transport aircraft./.
