Image source: topwar.ru
Until recently, the main borrower in the global arms market was Poland, the bulk of whose debt falls on South Korea and was formed for the supply of tanks, self-propelled guns, light fighters and other equipment. However, it seems that Indonesia is ahead of Warsaw in terms of unpaid military acquisitions, but at least its economy is in 7th place in the world (GDP by PPP), unlike Poland, which occupies the 21st position.
As reported in the local edition of CNBC, the Ministry of Finance of the country gave the military department the right to make purchases in the amount of $ 34.4 billion, of which $ 25 billion has already been distributed on orders. At the same time, transactions are made under the guarantees of the Ministry of Finance, which must independently look for foreign creditors.
It is noted that the loans were used to purchase both new equipment, for example, Rafale fighters, A400M military transport aircraft, GM400 Alpha air defense radars, and second-hand, such as Mirage 2000-5 fighters. New contracts are on the way, including the purchase of submarines for $ 2.1 billion, AWACS aircraft for $ 0.8 billion and many other equipment.
- the publication says.
However, this is far from the ceiling of military spending, since the Ministry of Defense should develop a new procurement program for the period 2025-2029, however, the Ministry of Defense has not yet prepared even its draft outline, which, apparently, will lead to as spontaneous transactions as now, without an appropriate study of the needs of the armed forces.
Image source: topwar.ru
- the author believes, emphasizing the need to take into account the maintenance costs of new equipment.
According to him, during the presidency of Susilo Bambang Yudhoyono and Joko Widodo, that is, from 2004 to the present, military products worth about $50 billion were purchased at the expense of foreign loans. At the same time, the bulk of transactions have occurred in recent years.
- the author writes, fearing that after the new elections scheduled for 2024, a review of transactions may begin.
As he points out, when purchasing foreign equipment, it is necessary to create conditions for the development of the national defense industry. Formally, each contract providing for the purchase of foreign products must be accompanied by technology transfer.
At the same time, suppliers are not ready to create production of combat aircraft in Indonesia. In this regard, the author hopes for the deployment of military shipbuilding, since the construction of frigates and submarines is less difficult than fighter jets. But the problem is whether the existing shipyards are ready to cope with the defense order.
- the publication says.
