double-skinned crabsVietnamese crab exportergood crabexellent crab

Prabowo’s Military Modernization Plan Faces Economic Reality Check

Faisal Maliki Baskoro, Jayanty Nada Shofa
May 22, 2026 | 9:14 am
SHARE
President Prabowo Subianto speaks with an Indonesian Air Force pilot during a handover ceremony for Rafale fighter jets and other military equipment at Halim Perdanakusuma Air Base in Jakarta, Indonesia, on Monday, May 18, 2026. (ANTARA FOTO/Galih Pradipta)
President Prabowo Subianto speaks with an Indonesian Air Force pilot during a handover ceremony for Rafale fighter jets and other military equipment at Halim Perdanakusuma Air Base in Jakarta, Indonesia, on Monday, May 18, 2026. (ANTARA FOTO/Galih Pradipta)

Jakarta. Indonesia has long prided itself on buying weapons the same way it conducts diplomacy: from everyone, but never too much from anyone.

For decades, Southeast Asia’s largest economy balanced arms purchases among the United States, Russia, South Korea, and Europe as part of its “free and active” foreign policy aimed at avoiding overdependence on any single power. But under President Prabowo Subianto, that balancing act is beginning to tilt toward France and Turkey.

Indonesia wants a military capable of defending the world’s largest archipelago as tensions rise from the South China Sea to the Middle East. Yet it must modernize while grappling with a weakening rupiah, narrowing fiscal space, and the awkward reality that operating too many weapons systems can create logistical chaos.

France has emerged as Jakarta’s preferred supplier for high-end military hardware. Indonesia has agreed to buy 42 Dassault Aviation Rafale fighter jets in a deal worth more than $8 billion (Rp 141.5 trillion), while French firms are also involved in submarine and radar projects. Turkey, meanwhile, has become an increasingly important partner in defense manufacturing. Last year, Jakarta signed a deal for 48 KAAN fifth-generation fighter jets from Turkish Aerospace

ADVERTISEMENT

Industries, alongside cooperation in missile and warship production. The diversification strategy may look geopolitically elegant, but operating weapons from multiple platforms increases interoperability risks, according to Aditya Batara Gunawan, a defense policy analyst at Bakrie University. Still, the Defense Ministry appears to be anticipating those challenges through procurements such as the Rafale fighter jets and GM403 radar systems, which are aimed at improving interoperability across Indonesia’s defense network.

“But we still need to see how the new fighter jets and radar systems will integrate with existing aircraft and, more importantly, with weapons systems operated by the Navy and the Army,” he said.

Indonesia already operates aging American-made F-16s and Russian Sukhoi jets. Aditya pointed to India as an example of a country managing multiple fighter ecosystems, though he warned that such an approach increases operational costs and complicates logistics, maintenance, and pilot training.

“I believe Indonesia’s current defense priority should be improving the interoperability of its existing weapons systems rather than buying new platforms,” he said. “That means the Defense Ministry and the Indonesian Military (TNI) need to build a more modern and integrated command structure along with the supporting infrastructure.”

Buying Weapons in a Weak Currency Era

Replacing Indonesia’s aging military fleet has long been on Prabowo’s wishlist, with the former army general insisting that Jakarta must continue “to build its strength.”

The government has allocated Rp 337 trillion for defense this year. The Defense Ministry’s spending is capped at Rp 187.1 trillion; some Rp 83 trillion of that cash will go to arms upgrades. Finance Minister Purbaya Yudhi Sadewa has pledged a “quite significant defense budget” for 2027 while maintaining the fiscal deficit below the legal ceiling of 3% of GDP.

Indonesia currently spends just 0.7-0.8% of GDP on defense, far below the informal 2% benchmark favored by many strategists and well behind Singapore, which consistently allocates around 3%. Prabowo wants to raise the ratio to 1.5%, but room for expansion is narrowing as the rupiah weakens to an all-time low and debt-servicing costs rise.

Yet offers from arms suppliers continue to pour in. Japan – which recently eased its lethal weapons export restrictions – has offered Mogami-class frigates, while France has been lobbying Jakarta to purchase additional Rafale jets.

Adrianus Prima, a defense analyst at Lembaga KERIS, welcomed major military purchases, describing them as “long-term investments, not wasteful spending.” He argued that procurement programs tied to local production and technology transfer could generate economic benefits through job creation and reduced import dependence.

“We must continue defense spending while maintaining fiscal discipline. Military modernization takes time, and deliveries can take up to five years after contracts are signed,” Adrianus said.

Rahma Gafmi, an economics professor at Airlangga University, warned that defense procurement remains highly vulnerable to currency fluctuations because it relies heavily on imports and foreign financing.

She argued that Indonesia should preserve routine maintenance budgets to prevent existing military equipment from deteriorating, while cutting 20-30% of planned spending on new contracts until the rupiah stabilizes.

Beni Sukadis, a consultant at Marapi Consulting, said Indonesia would be better off focusing on existing contracts under current economic conditions.

“Without adjustments to priorities, our military spending risks becoming symbolic and lacking sufficient deterrent effect,” Beni said.

Tags: Keywords:
SHARE

Related Articles


News 19 hours ago

Prabowo’s Overseas Trips Deliver Results, Not Ceremony, Says Cabinet Secretary

Cabinet Secretary Teddy says Prabowo’s overseas trips have secured investment, defense cooperation, and key diplomatic gains.
News Jun 1, 2026 | 4:51 pm

Prabowo Warns of Resistance to Indonesia’s Economic Transformation

Prabowo vowed to fight corruption and smuggling, saying economic reforms must ensure Indonesia’s wealth benefits its people.
News Jun 1, 2026 | 11:59 am

Prabowo Leads Final Farewell to Former Defense Minister Ryamizard Ryacudu

President Prabowo paid final respects to former defense minister Ryamizard Ryacudu, who was buried with military honors.
News May 30, 2026 | 11:46 am

Prabowo Returns to Jakarta with $3.5 Billion French Deals

These French commercial deals cover the trade, energy security, and defense sectors, although not much is known about the details.
News May 29, 2026 | 3:42 pm

‘Bonjour, Monsieur’: Prabowo Wants Indonesian Schools to Teach French

This is not the first time for Prabowo to announce his plans to include foreign languages in Indonesia's curriculum.
News May 29, 2026 | 1:00 pm

France, Indonesia Mustn't Rely on Major Powers for Minerals: Macron

Macron told Prabowo that Indonesia and France must not work together to avoid relying on major powers for minerals and raw materials.
News May 29, 2026 | 9:09 am

Macron Pleased with Indonesia’s Rafale Jets, But No New Contract Yet

French President Emmanuel Macron, however, hopes that Indonesia will be open to "new perspectives" in defense, including on Rafale fighters.
News May 28, 2026 | 10:43 am

Indonesia’s Top Clerics Defend Prabowo’s Use of State Funds for Eid Sacrifices

MUI said President Prabowo Subianto’s use of state funds to buy sacrificial cattle for Eid al-Adha complies with Islamic law.
News May 27, 2026 | 1:15 pm

Indonesia and France to Upgrade Ties to Comprehensive Strategic Partnership

Indonesia and France are set to elevate bilateral ties as defense, energy, and technology cooperation deepen.
News May 26, 2026 | 6:23 pm

Prabowo Lands in Paris After Receiving New Rafale Jets

This also means Prabowo will be celebrating Eid al-Adha in Paris.

The Latest


News 6 hours ago

Prabowo Replaces National Nutrition Agency Chief in Surprise Leadership Shake-Up

President Prabowo replaced the leadership of Indonesia’s National Nutrition Agency in a surprise shake-up of a key flagship program.
Business 8 hours ago

Indonesia’s Trade Surplus Falls to Six-Year Low as Oil Imports Surge

A sharp increase in crude oil and fuel imports pushed Indonesia’s April trade surplus to its lowest level in six years.
Business 8 hours ago

Rupiah Slides to Rp 17,839 Amid Geopolitical Uncertainty

Rupiah weakened to Rp 17,839 per US dollar as Middle East tensions and US trade policy uncertainty rattled markets.
Business 9 hours ago

Palm Oil Exports Soar Double-Digits as New Trade System Begins

Palm oil producers are keeping their fingers crossed that the new one-gate trade regime will not scare away foreign buyers.
Business 9 hours ago

Indonesia’s Creative Economy Attracts Rp 61.3 Trillion in Q1 Investment

The creative economy sector attracted Rp 61.3 trillion in Q1 investment, with foreign investors accounting for 71% of the total.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED