Indonesia becomes Southeast Asia’s second biggest military spender

Indonesia becomes the second-largest military spender in Southeast Asia. (Photo: thejakartapost.com)

The country’s military expenditure is forecast to reach 9.7 billion USD by 2028.

GlobalData’s latest report, “Indonesia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2023-28,” reveals that the country’s cumulative defence spending is anticipated to touch 46.6 billion USD during the 2024-2028 period, out of which the acquisition budget share is estimated to be approximately 28.4%, amounting to 13.3 billion USD. The defense acquisition expenditure is expected to register a compound annual growth rate (CAGR) of 1.5% over 2024-2028 and reach 2.7 billion USD by 2028.

Abhijit Apsingikar, Aerospace & Defense Analyst at GlobalData, said that Indonesia’s defence budget is majorly driven by the need to mitigate natural disasters and undertake military modernisation initiatives.

The country is looking to expand its defence posture as well as augment its indigenous defence manufacturing industrial complex through military modernisation initiatives, while improving capacity in response to security and terrorism threats.

Over the 2018-2023 period, Indonesia carried out several defence deals to modernize its air force fleet, including the acquisition of 42 Dassault Rafale as well as 24 F-15ID multirole strike fighters. The country also invested in modernising its air lift capability, and signed a contract to acquire two units of the A-400M Atlas transport aircraft./.

VNA