Indonesia Has Enough Money for BrahMos Missiles, Finmin Purbaya Says
Jakarta. Finance Minister Purbaya Yudhi Sadewa said Wednesday that there shouldn’t be any budgetary issues when it comes to the import of the Indian BrahMos supersonic missiles.
Indian Prime Minister Narendra Modi’s talks with President Prabowo Subianto saw the announcement of a BrahMos missile system contract. Both New Delhi and Jakarta stay tight-lipped on the value of the contract.
Asked about Indonesia’s financial capacity if the purchase indeed takes place, Purbaya replied that the Defense Ministry should already have a large enough budget to do so.
“I believe the defense budget is sufficient. I suppose [the Defense Ministry] will allocate its budget [for the BrahMos]. I don’t know the details, but I will ask them,” Purbaya told reporters in Jakarta.
“But the Defense Ministry’s budget is already quite big, so it should suffice.”
Indonesia’s entire defense-related budget stands at roughly Rp 337 trillion ($18.6 billion) for this year alone. The Defense Ministry gets Rp 187.1 trillion (roughly $10.4 billion), and nearly Rp 83.5 trillion ($4.6 billion) of that money is going to military upgrades.
Just the previous night, Rudrendra Tandon, Secretary (East) in the Indian External Affairs Ministry, revealed that the Prabowo-Modi meeting did not discuss the commercial details — including the contract's value and procured units — in great length. The specifics are up to the signatories to discuss, alluding to the developer BrahMos Aerospace — a Russo-Indian joint venture — and the Indonesian Defense Ministry.
“[Defense-related commercial agreements] are left for the companies to sort out. But I can tell you that it is an important area of collaboration. There were extensive discussions on that,” Tandon said in a press briefing on Modi’s visit.
News agency Reuters, quoting unnamed Indian sources, recently reported that the deal was worth $630 million.
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