Has Indonesia's House of Representatives Approved the Defence Budget Proposal for 2026?
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Synopsis
In a significant move for national security, Indonesia's proposed defence budget for 2026 has been approved. This budget aims to enhance military capabilities and support critical defence operations, reflecting the government's commitment to safeguarding national sovereignty and public welfare. Stay tuned for the latest updates on Indonesia's defence initiatives.
Key Takeaways
- The Indonesian House of Representatives has approved a defence budget of 187.1 trillion rupiahs for 2026.
- This budget will enhance military capabilities and pay personnel salaries.
- Indonesia's external debt has seen a slight decline, indicating stable economic management.
- Long-term external debt dominates the external debt structure, reflecting a healthy financial position.
- Coordination between the government and Bank Indonesia is crucial for monitoring external debt developments.
Jakarta, Sep 16 (NationPress) The Indonesian Defence Minister, Sjafrie Sjamsoeddin, announced on Tuesday that the proposed budget for the year 2026, totaling 187.1 trillion rupiahs (approximately 11.4 billion US dollars), has received approval from Commission I of the House of Representatives.
After a closed-door discussion at the parliament building in Jakarta, Sjafrie stated that these funds will cover the salaries of soldiers and personnel within the Indonesian National Armed Forces. Additionally, the budget aims to enhance the army's core weapon systems and bolster other defence areas that are crucial for maintaining national sovereignty, as reported by Xinhua News Agency.
"The budget will be utilized effectively to ensure its benefits are directly experienced by the public," Sjafrie told media representatives.
He noted that the approved proposal will be forwarded to the Budget Agency for further deliberations, expressing optimism for a smooth process.
On September 15, Bank Indonesia (BI) reported a slight decrease in Indonesia's external debt, which fell to 432.5 billion US dollars in July from 434.1 billion dollars in June.
Year-over-year, external debt increased by 4.1 percent, a deceleration from the 6.3 percent growth in the previous month. This trend was primarily influenced by a slowdown in public sector external debt growth and the strengthening of the US dollar against other global currencies, including the rupiah.
Government external debt stood at 211.7 billion dollars in July, with a 9.0 percent year-on-year increase, which is less than June's 10.0 percent growth rate. This moderation reflects a slowdown in both external loans and government securities.
Meanwhile, private external debt remained stable at 195.6 billion dollars, showing a 0.3 percent year-on-year contraction, consistent with June's figures.
Indonesia's external debt structure is deemed healthy, with the external debt-to-GDP ratio declining to 30.0 percent in July from 30.5 percent in June. Long-term external debt continues to dominate, making up 85.5 percent of the total external debt.
BI has stressed its commitment to enhancing cooperation with the government in monitoring developments in external debt, ensuring it supports development financing and sustainable economic growth while maintaining overall macroeconomic stability.
Point of View
It is imperative to emphasize our nation's commitment to securing its sovereignty through strategic defence budgeting. The recent approval of the defence budget proposal showcases a proactive approach to national security, enhancing our military capabilities while ensuring public welfare is prioritized. This investment is not merely about numbers; it represents our dedication to safeguarding Indonesia's future.
NationPress
20/09/2025
Frequently Asked Questions
What is the approved defence budget for Indonesia in 2026?
The approved defence budget for Indonesia in 2026 amounts to 187.1 trillion rupiahs, approximately 11.4 billion US dollars.
Who approved the defence budget proposal?
The defence budget proposal was approved by Commission I of the House of Representatives.
What will the budget be used for?
The budget will be used to pay salaries of soldiers and employees, strengthen the army's main weapon systems, and support other defence sectors vital for national sovereignty.
What recent trend was observed in Indonesia's external debt?
Indonesia's external debt slightly decreased to 432.5 billion US dollars in July, down from 434.1 billion dollars in June, with a year-on-year growth of 4.1 percent.
How does the external debt structure look like?
Indonesia's external debt structure is healthy, with a debt-to-GDP ratio of 30.0 percent and long-term external debt accounting for 85.5 percent of total external debt.
