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Defending The Country Entering the 21 st Century INDONESIA

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Page 1: Indonesia: Defending the Country Entering the 21st CenturyAmidst globalization and an ever changing stra-tegic environment, strive of the Indonesian nation in facing security issues

Defending The CountryEnteringthe 21st Century

INDONESIA

Page 2: Indonesia: Defending the Country Entering the 21st CenturyAmidst globalization and an ever changing stra-tegic environment, strive of the Indonesian nation in facing security issues

FOREWORDMINISTER OF DEFENCE,REPUBLIC OF INDONESIA

Assalamu'alaikum Warahmatullahi Wabarakatuh.

Let us praise God Almighty, for the nation of In-donesia never ceases to receive His blessings, guid-ance, strength and protection in striving to achievethe nation's goals.

Amidst globalization and an ever changing stra-tegic environment, strive of the Indonesian nationin facing security issues poses implications to thelife of the nation. In order to anticipate such secu-

rity issues, the state has administer the defence function, in principle aimedat upholding sovereignty, maintaining territorial integrity of the Republic ofIndonesia, and protecting the nation's safety from all threats, both fromexternal and internal sources.

In order to provide direction and a guideline for administering the de-fence function, a set of formulated policies are required. Inspired by such aconcept, the government of the Republic of Indonesia publishes the "WhitePaper of Defence" which fundamentally incorporates stated defence poli-cies in carrying out defence functions, in the future.

The White paper of Defence of the Republic of Indonesia is title: "INDO-NESIA : Defending The Country Entering the 21st Century". The title impliesthat members of the Indonesian nation are willing to sacrifice their lives andmaterial possessions to defend their country. The meaning gains significanceas we enter the 21st century, as the threats and challenges faced by Indone-sia have not declined.

Defence policies are formulated based on national interests and goals, inconsideration of the development of national strategic contexts and objec-

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tive conditions. For that reason defence policies are constantly under reviewand evaluation, and necessary revisions are made to adapt to the latest de-velopment. However, such revisions should always be based on the under-standing and principles of defence adopted by the Indonesian nation basedon Pancasila and The 1945 Constitution.

With the publication of the White Paper, it is expected that the Republicof Indonesian (RI) government apparatus and the people of Indonesia will beable to better understand defence policies.

The Paper is also essential for Indonesia in maintaining international co-operation. Transparency, in particular pertaining defence policies, is one ofthe efforts made to establish mutual trust with other nations.

In conclusion, as the minister and on the behalf of all members of the RIMinistry of Defence I would like to express my gratefulness to God Almighty,for His guidance and His light have led us to the successful publication of theWhite Paper as previously planned.

I would also like to express my appreciation and gratitude to all partieswho participated in preparing this Defence White Paper. I am certain thatsuch participations are valuable contributions to our beloved country andNation of Indonesia.

May God Almighty endows His blessings to the people of Indonesia.

Wassalamu'alaikum Warahmatullahi Wabarakatuh.

Jakarta, 31st March 2003

MINISTER OF DEFENCE, RI

H. MATORI ABDUL DJALIL

Defending The Country Entering the 21 Century

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EXECUTIVE SUMMARY

The Issuance of Defence White PaperChanging global politics in the era

of globalisation has triggered a glo-bal competition between nations.This condition has resulted in a com-petition for influence, at global, re-gional, and national levels. This de-v e l o p m e n thas high-l i g h t e dchanges inthe world'ssecurity situ-ation which iscaused by thepresence ofnew securityissues. In thepast, the issue of traditional securitythreats was pre-eminent, i.e. relatedto geopolitics and geostrategy, in par-ticular pertaining to East and Westspheres of influence. The world'smain concern then was the develop-ment of military strength, strategicweapons and hegemony. Security is-sues in the present decade are com-plicated by the escalation in terror-ist activities, piracy, smuggling, ille-gal immigration, illegal fishing, andother trans-national crimes. Suchcrime has become increasingly com-plicated as it is controlled by actorswith strong trans-national networks,well equipped with the latest tech-nology, and with strong financialsupport.

In response to global changes, theReforms Movement aimed ;at creat-ing a more democratic society, freefrom corruption, collusion and nepo-tism practices. To a certain extentnational reform has shown positivesigns of change, in the lives of Indo-

nesian society,through stateadministrativesystem reform,in the fields ofpolitics, law,economics, so-cial, defence,security andpublic order.

In the field of Defence, fundamen-tal transformations include struc-tural, legal, and cultural aspects. Thetransformation has been incorpo-rated in Act Number 3 year 2002 onDefence. The Act on Defence hasmandated the formulation of defencepolicies in the form of a White Paper.Following in depth analysis and con-sideration, the published DefenceWhite Paper is title: Indonesia:"Defending the Country Enter-ing the 21st Century". The titlesymbolises Indonesian people's de-termination and spirit to sacrificetheir lives and material possesions todefend the sovereignty and territo-rial integrity of Republic ofIndonesia.

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National and Defence ReformNational reform is fundamentally

a process of transformation driven bythe spirit and noble determination ofthe Indonesian nation to reform andachieve a better future. This nobleintention would be achieved througha democratic, clean, and just govern-ment capable of upholding the su-premacy of law. Through the re-formed government, the practices ofcorruption, collusion and nepotism,which had impeded national devel-opment, would be combatted. It is ac-knowledged that in order to achievea democratic society, the path iswinding and the challenges are great.However, it is believed that thepresent reform will be an appropri-ate debate and instrument to bringIndonesia to the desired civil state.In accomplishing the noble intention,hard work and shared efforts are re-quired to create synergy to allow theagreed reform agenda to be pursuedand in the right direction. In accord-ance to the commitment, reformshould be safeguarded against anar-chy and the contamination of a par-ticular interest group, and for theagenda to be pursued in line with theThe 1945 Constitution and principlesof Pancasila.

In line with the national reformcommitment, reform in defence is con-ducted conceptually based onPancasila and The 1945 Constitution.I.e. defence reform is one of the mani-festations of the reform commitmentto be done gradually and constantly

and to include structural, cultural andvalue reform as an integrated and com-prehensive unit of transformation.

Structural reform includes de-fence organisations related to sub-stantial aspects. Ranging from organi-sational structure, authority lines,functions and duties of Ministry ofDefence and the Indonesia NationalArmed Forces (TNI: Tentara NasionalIndonesia). Organisational reform isaimed at achieving better effective-ness, in accordance with the devel-opment of the strategic environmentand the demands of a democraticsociety. Changes in terms of culturaland values, are directed at the atti-tude and behaviour of the defenceadministration, in pursuance of itsrole and duties as a professional de-fence authority.

TNI's commitment to carry outreform is part of TNI's political de-termination and intention to achieveprofessionalism in performing a roleas the state apparatus in the field ofdefence. As a professional armedforce, TNI has demonstrated its com-mitment to stay away from practicesof politics, and to stay within thedemocratic framework. As a profes-sional Armed Force, TNI expects tobe non-policital, to operate under theauthority of the government electedby the people through constitutionaland democratic means, to be welltrained and well educated, ad-equately equipped, and to haveproper welfare arrangements.

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As the people's military, TNI hasto be close to society. TNI should livetogether and try to get to know thepeople. Therefore, efforts to separateTNI from the people is a denial ofTNI's nature as armed forces formedfrom the people, who struggles to-gether with the people, for the peo-ple's interests. This is one of thepinciples of the territorial functionscarried out by TNI to maintain itsproximity to the people and territo-ries.

Strategic ContextsThe dynamics of strategic contexts

have been nuanced by various politi-cal and economic issues, influencingglobal, regional and domestic secu-rity. Political, economic, and securityissues are inter-related aspects whichare inseparable.

On a global scale, the end of coldwar has not guaranteed the accom-plishment of global security and sta-bility. The world is still confrontedwith traditional security issues suchas territorial disputes and the prolif-eration of nuclear and weapons ofmass destruction. The complexity ofglobal security issues has escalatedwith the practice of hegemony, de-veloped through the strengthening ofalliances, military capacity, techno-logical and economic advantage.

It is recognised that internationalrelations based on mutual trust andrespect could minimise potential con-flicts. However the discrepancies

found between developed and devel-oping countries in terms of econom-ics, technology and military strength,could act as an impediment in main-taining international relations. As aresult, the rivalries betweenhegemonies are a potential source ofconflict in the world today.

Anxiety and uncertainty faced bynations in the world increases in com-plexity due to the emergence of newsecurity issues i.e. non traditionalsecurity issues such as terrorism, eth-nic conflict, sea piracy, plane hijack-ing, smuggling, drugs trafficking, il-legal immigrants, and other trans-national crimes. After the WorldTrade Centre (WTC) tragedy on the11th September 2001, internationalterrorism became a tangible threat tothe world. Many countries have ex-pended much effort in combatingterrorism; however it seems that theefforts have not been entirely suc-cessful in eliminating terrorist groupsor in stopping their actions. Even ayear after the WTC tragedy, terroristaction re-occurred in the Bali bomb-ing tragedy 12th October 2002. Giv-ing witness to the estimation that forsome time to come the threat of in-ternational terrorism will shadow theworld. Therefore terrorism has to beeliminated by the coordinated actionof all nations in the world, denyingterrorism groups safe heaven.

The intensity of illegal activitiesin the form of trans-national crimehas also escalates sharply in the re-

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cent decade. Piracy and robbery,migrant trafficking, smuggling of il-legal weapons, drugs trafficking, il-legal migration poses a serious chal-lenge to regional stability and inter-national relations. Intensified trans-national illegal activities have beentriggered by the presence of interna-tional networks. In some regions,trans-national crime networks havebecome tangible, organised threats.The crime is initiated by actorsbacked with technological and finan-cial support, and wide networks incertain countries.

In this region, global trends anddevelopments are ones of the influ-encing factors determining regionalsecurity dynamics. The emergingtrend in the region is the shift of re-gional security issues, illustratednamely by the presence of conflictspertaining territorial claims, maritimecommunication channels, and mari-time trade routes. Non traditional se-curity issues occuring in the globalscale have also become major issuesat the regional level. The interactionand dynamics of major countries suchas the United States, China, Japan,Russia and European Union, will be-come an influential factor in the se-curity map of Asia Pacific.

On the domestic scale, Indonesiaas a nation located in the middle ofthe globe, could not escape from glo-•bal and regional developments. Po-litical, economic, social and secu-rity dynamics in the region, are

among influential factors for socialpolitical and security developmentsin Indonesia. Domestic security is-sues which have surfaced in the re-cent decade, cannot be separatedfrom the contribition of external fac-tors, directly or indirectly. Apart fromexternal factors, there are internalfactors which are potentially threatsto national security. Such factorsnamely, ethnic heterogeneity in In-donesia, the economic crisis situa-tion and political and social factors.The accumulation of external andinternal factors manifests itself invarying forms of threats anddistubances to national security,which on a larger scale could posethreats to the regional stability.

Threat Prediction and the StrategicDefence Interest

Indonesia's geopolitical situationas an archipelago situated betweenthe Asian and Australian continentsand between the Pacific and IndianOceans, means that the nation isheavily influenced by developmentsin strategic context. This may implycontradicting interests between Indo-nesia and other nations. As a resultof the dynamic of the strategic con-text, at the global, regional and do-mestic scale, Indonesia in the futuremay face traditional and non tradi-tional threats. Traditional securitythreats may manifest themselves inthe form of invasion or aggressionfrom other countries, although thisis highly unlikely. The role of UNand the international world's reaction

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is assessed as being capable of pre-venting, or minimising the use of thearmed forces of a nation to invadeother countries.

External threats, which are moreprobable, may come from trans-na-tional organised crimes committed bynon state actors taking advantage ofconducive domestic conditions. Esti-mated future threats and distur-bances faced by Indonesia range fromterrorism, separatism, cross bordercrimes (smuggling, illegal fishing,pollution and destruction of the eco-system, illegal migration, and piracy),radicalism, communal conflicts, andthe impact of natural disasters.

As stated in the Preamble of 1945Constitution, Indonesia's national in-terest is to safeguard and protect thesovereignty of the state, the territo-rial integrity of the Republic of Indo-nesia, the nation's safety and pride,and to actively involve in efforts tocreate world peace. Based on themandate given by 1945 Constitution,thus Indonesia's strategic defence es-tablishment should be able to ensurethe accomplishments of national in-terests. In essence, future strategicdefence interests include permanentstrategic interests, urgent strategicinterests, and international coopera-tion in defence.

There are permanent defence in-terests of Indonesia which are defenceadministration efforts to safeguardand protect the sovereignty and ter-

ritorial integrity of the Republic ofIndonesia and the safety and dignityof the nation from all forms ofthreats, both coming from externalor domestic sources. Even thoughthreat estimates have demonstratedthat external physical threats to sov-ereignty are unlikely, as an independ-ent, sovereign and dignified nation,the strategic capability to defendourselves must be maintainedwhether the threats are present ornot.

Urgent strategic defence interestsmay not be separated from perma-nent strategic interests. Actual secu-rity issues, such as previously de-scribed, have demonstrated signifi-cant escalation in the recent decade.Therefore, urgent strategic interestsare directed to address the actualsecurity issues required to defend thenation's territorial integrity, safetyand dignity. Hence the priority ofdefence administration should beplaced at addressing non traditionalsecurity issues across borders,including domestic securitythreats.

As part of the international com-munity, Indonesia cannot not escapeexternal interference. Therefore fu-ture defence policies, will also be di-rected at establishing good relationswith other nations, on a regional scaleor broader scale.

Defence cooperation with otherstates is based on the principles of

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Indonesia's foreign relations policy,and directed towards the develop-ment and empowerment of defencesector, and to create regional and glo-bal security and stability. The in-volvement of the defence sector inphysical terms will be carried outbased on the political decision of thegovernment.

Strategic Policies for Defence Imple-mentation

Pursuant to the nature of threatsfaced by Indonesia, apart from na-tional and defence interests, Indone-sia's defence policies entering the21st century include policies on theuse of defence force, development ofdefence force and international de-fence cooperation.

The use of defence force is di-rected to face threats or disturbancesagaints national security, and to as-sist the government in efforts to per-form national development and in-ternational duties.

In anticipation of external threatsin the form of foreign military forces,TNI carries out Military Operation(MO). Even though it is estimated thattraditional threats of aggression orinvasion from other countries is veryunlikely, defence preparednessshould be maintained. In this context,defence effort is directed to preven-tive measures, to prevent and over-come greater security impactsthrough the presence and prepared-ness of TNI's forces.

The majority of threats faced byIndonesia are estimated to rootfrom non traditional threats, bothdomestic and trans-national.Therefore, strategic defence poli-cies should be directed at facingand overcoming urgent non tradi-tional threats, which should beprioritised. When implementedTNI takes charge through MilitaryOperations Other Than War(MOOTW). TNI carries out MOOTWtogether with other national com-ponents in implementing coordi-nated measures comensurate withthe level of escalating threats faced.Against security threats and distur-bances, TNI will constantly put for-ward preventive measures in orderto avoid escalating numbers of vic-tims and more severe impacts.

The use of TNI's forces in per-forming MOOTW is to address ur-gent defence interests. Such urgentinterests are namely combatting ter-rorism, facing separatist groups inAceh and Papua, facing radicalgroups, resolving communal con-flicts, fighting piracy, illegal migra-tion, overcoming illegal fishing andsea pollution, illegal logging, assist-ing civil government in addressingimpacts of natural disasters, han-dling refugees, providing Searchand Rescue assistance, safeguardingvital objects, carrying out duties tomaintain world peace.

The use of defence force, apartfrom handling domestic security is-

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sues, is also aimed at performing in-ternational duties. Defence coopera-tion is one of many important stra-tegic defence policies. Appropriateinternational cooperation wouldcontribute to the success and devel-opment of defence force. Defencecooperation is carried out as inte-gral part of Indonesia's foreign poli-cies. International cooperation inthe defence sector is a bridge tocultivate trust among nations andto achieve regional stability and se-

curity. Regional issues would be re-solved by emphasizing the spirit oftogetherness and balance of inter-ests, built based on equality ofrights, mutual respect, and non in-terference.

The development of Indonesia'sdefence force is an inevitable neces-sity. Urgent security issues cannot be

resolved unless defence force's ca-pacity and strength are adequate.TNI's current personnel and mate-rial conditions mean the develop-ment of TNI is an urgent matter.Conditions are appalling in terms ofquality and quantity, while futureduties become more difficult andcomplex. Similarly in other defencecomponents, such as reserve andsupporting components, preparationand management are far from ful-filling expectations.

The formulation of defence poli-cies is made after consideration ofgeographic and demographic fac-tors; the availability of natural andartificial resources, social factorsand state's financial condition.Apart from that, other major con-siderations in formulating policieson defence force development in-clude the level of technological abil-ity, especially in terms of mainweaponry equipment systems, realand potential threats faced by thecountry, and the development ofstrategic contexts looking at ideo-logical, political, economical, so-cial and cultural aspects.

The direction and target of Indo-nesia's defence development is not toincrease strength, but to fill gapspresent. In facing state budgetaryconstraint, and estimated unlikeli-hood of foreign invasion, the devel-opment of defence force is focusedon establishing the minimum re-quired essential force. Minimum Re-

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quired Essential Force in this contextis the TNI's strength and capacityrequired to address urgent securitythreats. In accordance with the effortsto develop TNI as a main componentof defence, the development of re-serve and supporting force shouldalso be done gradually.

Budgetary SupportOne of the supporting factors to

achieve considerable defence force isthe budgetary support to fulfill ur-gent requirements. At the present,the state has only managed to allo-cate defence budget at an annual av-erage of under 1 % of the Gross Do-mestic Product (GDP). As a compari-son, South East Asian nations gener-ally allocate more than 2 % of GDP.For nations with higher threat esti-mates, defence budget allocation mayrange from 4 % - 5 % of GDP. Withless than 1 % of GDP it is not onlydifficult to develop an adequate de-fence force, it is also difficult to main-tain the established minimumstrength required.

Development will not try to en-large TNI's strength from the exist-ing structure, unless urgent and es-sential matters surface. Replacementof personnel and materials are re-quired to replace depreciated mate-rials, also to fill the gap between realconditions and Table of Organisationand Equipments/Lists of Personneland Equipments. Apart from that itis also directed to prepare reservesand complementary componentsgradually to ensure the availabilityof the main component's (TNI) sup-port.

It needs to be understood thatdefence requires rational budgetarysupport. TNI's professionalism is de-manded as times change. The de-mand to be professional is not merelytargeted at the interests of the TNI'sinterest, but also for the entire na-tion's interest. It has to be acknowl-edged that TNI's professionalism willbe achieved if TNI soldiers are welltrained, well equipped, and havedecent living conditions.

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Table of ContentsFOREWORD MINISTER OF DEFENCE, REPUBLIC OF INDONESIA

EXECUTIVE SUMMARY

TABLE OF CONTENTS

CHAPTER ONE THE ISSUANCE OF WHITE PAPER

CHAPTER TWO NATIONAL AND DEFENCE REFORMNational ReformDefence ReformTNI's Internal Reform

CHAPTER THREE STRATEGIC CONTEXTGlobalRegional

The Role of Major CountriesThe Issues of Regional Waters SecurityThe Issues of Borders

NationalArmed Separatist MovementsTerrorismThe Issues Communal ConflictRadical Group MovementsSocial UnrestsMaritime Security DisturbanceAir Security Disturbance

CHAPTER FOUR

CHAPTER FIVE

THREAT PREDICTION AND STRATEGICDEFENCE INTERESTThreat PredictionNational InterestIndonesia's Strategic Defence Interest

Permanent Strategic InterestUrgent Strategic InterestInternational Cooperation Interest

STRATEGIC POLICIES FOR NATIONAL DEFENCEIMPLEMENTATIONStrategic ConceptThe Use of Defence Forces

Overcome Traditional Security ThreatsOvercome Non-traditional Security ThreatsAssisting Civil Government (Local Government)Territorial Development for Defence PurposeProtect Vital Objects

HI

XI

991012

1717212122232626262728293031

35353838394041

4545484950596262

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Defence Cooperation . 62Singapore 63Malaysia 64Philippines 64Thailand 65Other Members of ASEAN 6 5Papua New Guinea (PNG) 65Timor Leste 66Australia 66China 67United States 67United Kingdom 68Other (EU) European Union Countries 68Russia 68

Development of Defence Forces 68Current Defence Strengths 69Direction and Objectives of Defence Force'sDevelopment 70Defence Force Development and Arrangement 71Technology and Defence Industry 76

CHAPTER SIX BUDGET SUPPORT 81Current Defence Budget Support 81Future Projections 82

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The Issuanceof White Paper

INDONESIA

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Chapter OneThe Issuance of White Paper

Progress in information, telecom-munication, and transportation tech-nology has generated changes in vari-ous aspects of human life making theworld becoming more transparentand open. This openness has made itpossible for universal values to pen-etrate and interact with the values ofnations and cause the formation of aglobal community. One of the char-acteristics of a global community isinter-dependency among countries,which often draws countries of theworld into close competition. Alongwith this, the world's political maptends to develop towards the domi-nation of international influence onregional as well as global perspec-tives.

The implications of global and re-gional development changed theworld's security situation whichcaused new security issues. Securityissues in the past, which tended toemphasis geopolitical andgeostrategic aspects such as the ex-pansion of military force, strategicweapons and hegemony, have shiftedand become more complex. Securityissues such as terrorism, piracy, hi-jack, human and weapon smuggling,and other forms of crime have in-creased severely and have becomeworldwide security issues. The form

of crimes has also become more com-plex because it is led by actors withgood international networks, withtechnological ability and financialsupport. In addition, domestic secu-rity issues such as armed separatism,radicalism and communal conflictchallenge several countries, espe-cially developing countries. Theseworld security issues need compre-hensive handling. Thus, the conven-tional methods of dealing with secu-rity issues are less effective.

Along with the global develop-ment, there is a process occurringall over Indonesian, fromSabang to Merauke throughthe format of the Reform Movement.The Reform Movement demandscomprehensive change to enable theestablishment of a democratic com-munity.

Cross relations which occur in theprocess of global, regional, and do-mestic changes have caused a spec-trum of complex, multidimensionalthreat and challenge to Indonesia'snational security. For national devel-opment to occur national securityand stability has to be created, there-fore this situation cannot be ignoredand has to be addressed and over-come.

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TNI and Police, which in the pastwere accommodated in one institu-tion as the Armed Forces of the Re-public of Indonesia (ABRI: AngkatanBersenjata Republik Indonesia), haveundergone a reformation with theseparation of the two institutions, fol-lowed by role reorganization of bothinstitutions. The Act No.3/2002 onDefence has mandated the govern-ment to publish Defence White pa-per as a Defence Policy which needsto be recognized by the public, in-cluding the international community.

Defence Policy is based on theobjective conditions faced by Indo-nesia which is related to the regionaland global strategic context. Indone-sia's present national security issuesare very complex and have a seriouseffect on the unity of Indonesia and

the safety of the Nation. The concretethreats which challenge Indonesia areincreasing and come from outside(International) and from within thecountry (Domestic). These securityissues need serious and urgent actionthus became the priority in the De-fence Policy.

On the other hand, regional andglobal security issues also require theactive involvement of all countries tocreate world peace and order. In or-der to stop the threat of terrorismand other international crime, weneed unity in international coopera-tion. Therefore, besides developingDefence Policy directed to handleactual domestic security issues, wealso need security cooperations withother countries. International coop-eration should be created on the prin-

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ciples of mutual trust and respect foreach others sovereignty, and withoutIntervening on other country's inter-nal affair. For Indonesia, security co-operation with other countries isbased on Indonesia's foreign policy'active and free' and Indonesia as anindependent country. That coopera-tion is directed towards bilateral in-terest and at the same time creatingregional security and world peace.

Hence, this Defence White paperhas two important meanings. First, togive a complete understanding of In-donesia's Defence and of its imple-mentation. Second, to communicateIndonesia's Defence Policy to the in-ternational community. Through thecomprehension, trust and respect ofall components of Indonesia and

among countries in the region andinternationally, security can becreated.

The government accepts thisheavy load, even under present con-ditions, where it is facing multidimen-sional problems and challenges. Un-der the current circumstances, it isundeniable that future Defence willface difficult challenges. The realiza-tion of Defence target needs the sup-port of all parties and all componentsof the nation, as the manifestation ofrights- and responsibility of all citi-zens in defending their country.Therefore, the active participation ofall components of the nation in De-fence is Indonesia's essential strengthin ensuring the existence of theRepublic of Indonesia.

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National andDefence Reform

^R"WrivmnINDONESIA

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Chapter TwoNational and Defence ReformNational Reform

The noble spirit and objective toreconstruct lives and to strive for abrighter future has driven all of In-donesian people to carry out the Re-form process. The essence of nationalreforms is to achieve a transforma-tion in all aspects of the lives of thepeople towards a better life. Thetransformation has a national dimen-sion and is carried out in all the re-gions of the Unitary State of the Re-public of Indo-nesia (NKRI :N e g a r aK e s a t u a nRepublik Indo-nesia), and byall compo-nents of theNation. Thecourse andaim of this re-form is at one with the objective ofthe August 17th, 1945 Proclamationof Independence, and is in harmonywith the nation's cultural and univer-sal values.

The noble objective of reform canonly be achieved through the establish-ment of a democratic, dean, and au-thoritative government. The desiredgovernment is one that could managea democratic life and establish the su-

premacy of law, bring an end to cor-ruption, collusion and nepotism and allother deviations, which hinder devel-opment and damage the national in-terest. The effort to strive for this no-ble objective is neither simple nor easy.There are challenges and obstacles,which face Indonesia, including the eco-nomic and monetary crisis, and vari-ous conflicts which have yet to be to-tally resolved. The desired objectiveshave had consequences in other aspects

of life. Theproblems tobe jfaced havebecome morecomplex, be-cause the de-veloping po-litical climate,and togetherwith a lack ofpolitical matu-

rity has tended to bring about a moodof democratic euphoria.

The depiction of conditions above,illustrates how the path towards ademocratic nation is still very longwith difficult challenges along theway. However, we believe that thereforms that have been carried outnow are necessary as the exact meansand instrument, to lead Indonesianpeople to the desired civil society.

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Even though facing difficult chal-lenges, faith in the integrity of thenational reforms has generated thespirit to continue the reform process.The effort to bring to fruition the ob-jectives of the reforms needs thestrong determination and support ofall the Indonesian people. This deter-mination and support demand hardwork and collective effort in synergy,so that the reform agenda, which hasbeen agreed upon, can continue andbe kept on the right track. Along withthat commitment, any action whichcould hinder or stop the reform mustbe avoided; and the reform movementmust be kept away from anarchy andefforts to servegroup inter-ests. The na-tional reformsmust be main-tained andcarried outwithin theframe of The1945 Constitu-tion andPancasila philosophical values.

Defence ReformAlong with the commitment to na-

tional reform, reform in the field ofdefence is carried out conceptually,and based on The 1945 Constitutionand Pancasila philosophy. DefenceReform is the nation's commitmentcarried out step by step and continu-ously; covering the arrangement ofstructure, culture, and value as awhole and integrated transformation.

The agenda of structural rear-rangement has so far covered the ar-rangement of defence organizationthat touches on a substantial numberof aspects. This arrangement coversorganizational structure, authoritativestructure, the functions and duties ofthe Ministry of Defence and the func-tions and duties of the TNI. The or-ganization of this rearrangement isdone so that the conduct of Defencecan be more in accord with the devel-opment of the strategic environmentand within the framework of a demo-cratic society. In aspects of culture andvalue, transformation is directed to-wards the attitude and behavior of De-

fence organiz-ers to enablethem to posi-tion them-selves accord-ing to their roleand tasks. Thetransformationis applied to allpersonnel inthe Ministry of

Defence and TNI, from the highestrank to the lowest.

The reform in the field of defencebegan with People ConsultativeAssembly (MPR : MajelisPermusyawaratan Rakyat) DecreeNo.VI/2000, on the separation or-ganization of TNI and Police (Polri:Kepolisian Republik Indonesia), andMPR Decree No.VII/2000, which de-fined the roles of TNI and of Polri.One part of the implementation is The

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Act No.3/2002 on Defence, replacingThe Act No. 20 / 1982. The Act No.20/1982 on the Basic Principles of Defenceand Security is no longer in accordancewith the reform. The Act No. 3/2002,besides controlling the rearrangementof the defence authority, also conductsa basic transformation of future stateorganization to support the nationalinterest, in accordance with the objec-tives of the reform and for the achieve-ment of the national goal.

Substantially The Act No.3/2002regulates the authority and respon-sibility of the Defence Minister, de-fines the roles and duties of TNI, theauthority and responsibility of theTNI Commander, democratic values,human rights, environmental protec-tion, the role of the House of Repre-sentative (DPR : Dewan PerwakilanRakyat) in defence, the rights and re-sponsibilities of the citizen in defend-ing the country. Briefly, it regulatesas follows:

Authority and Responsibility of theDefence Minister

• The Defence Minister deter-mines the policy for execution of de-fence policy, based on the generalpolicy set up by the President.

• The Defence Minister sets upthe Defence White Book and deter-mines the policy on bilateral, re-gional, and international cooperationwithin his field.

• The Defence Minister formu-lates the general policy on the use ofTNI and other Defence Force

components.• The Defence Minister deter-

mines the policy on budget, procure-ment, recruitment, national resourcemanagement, and training in defencetechnology and industry needed byTNI and other Defence components.

Role and Duty of TNI• TNI has a role as an instrument

of Indoensia's Defence.• TNI has the duty to carry out

Defence policy to:» Maintain the sovereignty of

the State and the unity ofthe regions.

» Protect the honor and se-curity of the Nation.

* Carry out Military Op-erations Other Than War.

• Actively participate in thetask of regional and interna-tional peacekeeping.

Authority and Responsibility of theTNI Commander

• TNI Commander leads TNI.• The TNI commander organizes

the planning of military strategy andoperations, the training of military asa professional force and maintainsoperational vigilance.

• The TNI Commander has theauthority to use all Defence compo-nents in the carrying out of militaryoperations by law.

• The TNI Commander answersto the President in managing Defencecomponents and cooperates with theDefence Minister in fulfilling theneeds of TNI.

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Democratic Values, Human Rights,and the Environment

• Defence is based on the princi-ples of democracy, human rights,public welfare, environment, nationallaw, international law and interna-tional customs, and the principle ofliving side by side in peace.

• The use of all natural and man-made resources must give attentionto the simultaneous principles ofdiversity and environmental produc-tivity.

DPR's Involvement• The President has the author-

ity and responsibility for the con-scription of TNI's forces. In the mat-ter of conscripting TNI forces totackle the armed threat, the Presi-dent's authority must have the DPR'sapproval.

• The President appoints and dis-misses the Commander TNI with theDPR's approval.

• The DPR supervises the imple-mentation of Defence general policy.

People's Involvement• The essence of Defence is an all

encompassing universal defensiveeffort (total defence); its implemen-tation is based on the recognition ofthe rights and responsibilities of thecitizens and faith in self strength.

• The Defence System, in facinga military threat, places TNI as themain component, supported by re-serve and support components.

• The reserve component con-sists of citizens, natural resources, ar-

tificial resources, and national meansand infrastructure which have beenacquired through a mobilization, inorder to expand and strengthen themain component.

• The support component con-sists of citizens, natural resources,artificial resources, and nationalmeans and infrastructure, whichcan directly and indirectly in-crease the strength and capabilityof the main and reserve compo-nents.

TNI's Internal ReformAlong with the commitment

to Defence Reform, TNI also carriesout internal reform. Essentially,TNI reform is TNI's determinationand commitment to carry out thereformation of TNI through con-structive measures, along with thedevelopment of a democratic Gov-ernment and Nation. The improve-ment is carried out conceptually torearrange its functions and dutiesas mandated in The Act No. 3/2002.The internal reform requires TNI'sto create a professional TNI insti-tution, gradually and continuously.In accordance with this, TNI hasmade various efforts to return toits initial identity as an army whichcomes from the people, fights forthe people, and protects the secu-rity of the people. The people'sspirit is TNI's spirit; thereforeTNI must always maintain its unitywith the people, who are themain strength of Indonesia'sDefence.

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The spirit and the zest for im-provement always reside within TNI,responding to the challenges anddynamics of the environment. Thiscommitment has been achieved,among others, through activities ofgathering various strategic thinkingmaterials through seminars, discus-sions, and examinations; conductedwithin TNI or together with otherparties. From these activities TNIhas compiled a strategic thinkingconcept, a concept of internal re-form known as 'New Paradigm ofTNI's Role'. The New Paradigm ofTNPs Role consists of a documenton Redefinition, Repositioning, andRe-establishment of TNI's Role inthe Life of the Nation in the Future.This document was signed by theMinister of Defence and Security/Commander of Indonesian ArmedForces (ABRI) on October the 5th,1998. The will and commitment toreform, was later formally accom-modated by the people's repre-sentatives through MPR Decree No.VI/MPR/2000, regarding the Sepa-ration of TNI and Polri, and MPRDecree No. VII/MPR/2000, regard-ing the Role of TNI and the Roleof Polri.

The Implementation of TNI's reformcovers:

• TNI submits to the political au-thority of the government chosen bythe people according to democraticvalues based on Pancasila and The1945 Constitution. In carrying out itsduties TNI always conducts state du-

ties for the sake of national interest.• TNI's duty to carry out Defence

policies as regulated in Article 10 TheAct No.3/2002 on Defence is deter-mined by the Government's politicaldecisions. Therefore TNI's political re-sponsibility is in the hands of theNational Leadership.

• TNI has the duty to carry outDefence policy by making plans formilitary strategy and operations, bythe training of the military profes-sion and military forces and bymaintaining vigilance. (Article 10,14, and 18 of The Act No.3/2002 onDefence).

• TNI, as a part of the Nationalsystem, does not take an exclusiveposition but always maintains col-laboration with other components ofthe Nation.

• TNI carries out its duties in ac-cordance with the level of involve-ment determined by the government.

• Several structural changes are:Separation of Polri and TNI oncejoined together as ABRI. This changewas followed by the elimination of thepositions of Chief of Social PoliticsStaff TNI and Chief of Teritorial StaffTNI, the elimination of ABRI's Dualfunction, the liquidation of TNI's pro-ductive function and social & politi-cal functions, the elimination of theTNI/Polri Fraction in the legislativebody by the year 2009; and changesin TNI's doctrine and organization.TNI and Polri's separation also hadimplications for the Defence and Se-curity Ministry which has becomeThe Defence Ministry.

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TNI's commitment to carry outreform is TNI's political will and thedetermination directed at creating aprofessional army, playing its role asa state instrument in the field of De-fence. As a professional army, TNIalready has the commitment to moveaway from involvement in practicalpolitics, and to be under the com-mand of a government that is demo-cratically and constitutionally chosenby the people.

TNI's wishes as a professionalarmy, requires a TNI which does notpractice politics, is under the com-mand of a government chosen by the

people in a democratic and constitu-tional way, is well educated and welltrained, is sufficiently equipped, anda TNI whose budget and welfare isproperly provided for.

As the people's army, TNI has toalways be close to the people. TNI hasto know and live with the people.Hence, efforts to separate TNI from thepeople are denials of TNI's natureas an army that comes from the peo-ple, fights with the people, and for thepeople's interest. This is the essenceof the territorial function dischargedby TNI to maintain its closeness withthe people and its territory.

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Strategic Context

INDONESIA

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Chapter ThreeStrategic Context

At the strategic level, issues ofpolitics, economy, and internationalillegal conduct have national,regional, and global repercussions.These issues are also influentialfactors in national, regional, and global security. In the strategic con-text, issues of politics, economy andsecurity are closely connected andaffect each other; furthermore theseissues will al-ways have theattention ofthe Interna-tional Com-munity asthey are re-lated to thenational iriter-ests of eachcountry.

Indonesia, as an open country,also feels the effect of global andregional change. Indonesia's political,economic, social, and securitycondition is affected by externalfactors and does not stand on itsown. Domestic issues faced byIndonesia in the last decade are alsoaffected by external factors, whetherdirect or indirect; therefore the im-portance of global and regional in-terdependence should not underes-timated.

GlobalThe end of the Cold War does not

guarantee World security and peace.Inter-ethnic and racial conflicts, ter-rorism, money laundering, humansmuggling and illegal drug traffick-ing are nontraditional threats to do-mestic, regional, and global security.Meanwhile, traditional threats suchas weapons of mass destruction, in-

ternationald i s p u t e s ,and armraces are stilllatent issues.Both tradi-tional andnontraditionalthreats re-main theconcern ofthe Interna-

tional Community because thesethreats to World peace could increaseand become of real concern.

World security tends to be domi-nated by flourishing nontraditionalsecurity issues, but traditional secu-rity issues still cannot be completelyignored. The complexity of globalsecurity increased with the effort todevelop and maintain hegemonythrough alliance reinforcement, theadvance of military capability, tech-

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nological advancement, and alsothrough continuation of economicsuperiority.

Globalization, supported by theadvance of information technology,has brought about a big change inthe lives of world community. Accessto information becomes faster andeasier, instantly reaching other placesregardless of distance and state bor-ders. Countries' borders have be-come less clear, as though creating aworld without borders. The essenceof National sovereignty faces a chal-lenge because a country's authorityis reduced incertain ar-eas. For ex- ,ample, acountry can-not fullycontrol in-f o r m a t i o nflow whichaffect theconduct ofits citizens.

The simplicity acquired in the glo-balization process urges inter-de-pendency among countries, but onthe other hand triggers interpersonal,inter-group, and international com-petition. Countries and nations withsuperiority might be able to win thecompetition, and thus be able to pur-sue national interest in an effort toimprove the welfare of its people.Along with the improvement, inter-national crime and illegal conduct

rises in the form of new threats suchas terrorism, human smuggling, andwell-organized drug-trafficking.

Relationships among the Interna-tional community are based on mu-tual trust and respect. Mutual trustand respect creates a very good op-portunity for dialog in dealing withdifficult issues. Dialog and diplomacyare important means to help softenconflicts and reach a solution peace-fully. However the differences be-tween developed and developingcountries in the fields of economy,technology, and military remain a

complicating fac-tor in any dialog.Efforts to gainsupport fromother countries,or to win influ-ence over an-other country, orto develop andmaintain he-gemony in vari-

ous fields, can more often than notbecome a source of potential inter-national conflict.'•/•',:

u Since the WTC tragedy in USA onSeptember 11, 2001, internationalterrorism has become a new form ofwar, an asymmetric and concretethreat for the World. The definitionof international terrorism and therelated UN resolution to overcome itis an effort by the International Com-munity to battle international terror-ism. The global campaign to fight ter-

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rorism is conducted intensively andwith concrete measures. Each coun-try must identify terrorist groups,identify and stop the terrorist'ssource and flow of cash, then reportit to the UN. Developed countries givetechnical aids and training to im-prove other countries' ability in han-dling terrorism. Concrete efforts andhard work have not been able to com-pletely stop acts of International ter-rorism. One year after the WTC trag-edy, terrorists came back in actionwith foreigners in Bali, Indonesia, astheir target. This is known as the BaliTragedy October 12th 2002.

Besides the two world-shakingtragedies, acts of small-scale terror-ism occur in various countries. Ter-rorism invariably brings casualtiesfor civilians and innocent people, andthe risk of chaos that threatens thesecurity of the nation and its sover-eignty. Conflicts in the Middle East,South Asia, and South East Asia stillshow forms of terrorism, thus theInternational terrorist threat is stillshadowing the World. Internationalterrorism is the enemy of all theWorld community; therefore it has tobe fought together by Internationalcommunity.

Illegal activities and internationalcrime such as human and weaponsmuggling, illegal drug-trafficking,money laundering, and illegal immi-gration, show sharp increases. Illegalconduct and international crime nor-mally cause damage to other coun-

tries and may well disturb regionalsecurity and international relation-ships. These increases, among others,are encouraged by political difficul-ties, economic disparity, and the ex-istence of international crime net-works. Political upheaval and eco-nomic disparity in several countrieshave caused the large-scale migrationof people trying to find work andbetter living conditions in othercountries. In addition, economic dif-ficulties and unemployment haveforced people into extreme measuresto survive. A systematic effort andinternational cooperation is requiredto overcome international crime,which is conducted in an organizedway, within an International networkand conducted by actors who havetechnological and financial support.

The collapse of Soviet Union wasfollowed by drastic changes in theWorld's power structure. What usedto be bipolar became multipolar andUnited States emerged as the onlysuper power. The world is dominatedby the power of the United States, butRussia, European Union, China, andJapan are large countries who havethe power to influence internationalcommunity. With the political, eco-nomic, and military power they pos-sess, those countries cannot be over-looked and have significant abilitiesin determining regional security andworld peace.

Besides polarization of power, in-ternational organizations such as the

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United Nations and the Non-alignedMovement can have a significant rolein keeping world order. The UnitedNations continues to make efforts toincrease its presence and role in solv-ing international problems in variousregions. In the last decade, the UN hasstriven to develop a human securityconcept. This concept is directed tosave humans from malicious conduct.In this concept, UN Charter ChapterVII can be used as an instrument tolegitimate humanitarian interventionin the regions of a country and disre-gard that country's sovereignty. How-ever, UN Charter Chapter VII has notbeen accepted by all countries, espe-cially because there are differences ofinterest and because the characteris-tics of countries differ.

Together with the advance in in-formation technology, which bringsease in information access, economicactivity grows fast beyond state bor-ders. This improvement has encour-aged economic globalization andformed free markets. Regional eco-nomic alliances quickly developedwith the formations of economic alli-ances such as Asia Pacific EconomicCooperation (APEC), Asian Free TradeAgreement (AFTA), North AmericaFree Trade (NAFTA), and EuropeanUnion (EU). Free market and freetrade create close competition andforce each country to develop com-petitive and excellent products.

Limitations, especially in the capi-tal sector, in the quality of human

resource and technology, and strictmarket regulation have caused anxi-ety for the developing countries. De-spite the inability of developing coun-tries to compete they are still mar-kets for the products of developedcountries. The disproportionate eco-nomic competition between devel-oped and developing countries cancause dissatisfaction and acts of pro-tectionism, which might trigger con-flict and crisis which can threatensecurity and stability.

Issues of environment destructionhave escalated and drawn the atten-tion of the World community. TheEnvironment and Development Sum-mit (Earth Summit) in Rio de Janeiroin 1992 and Johannesburg Summitin 2002 proclaimed the adoption ofsustainable development principles.Sustainable development principlesare intended to save the environmentfrom irresponsible conduct. In ex-ploiting the environment to fulfilltheir needs, people are expected notto destroy the environment, causingdamage for human beings now andin the next generation. However, inreality, practices such as forest burn-ing, forest exploration without pay-ing attention to the ecosystem, andwaste disposal by some countries inanother country's waters still con-tinue and cause further environmen-tal damage.

Deforestation is currently not bal-anced by emission reduction andthere is even a tendency for the Kyoto

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Protocol to be observed half-heartedly by certain countries.On-going environmental destructionwill cause scarcity of naturalresources, which in turn might urgemass development of nuclear energyin the future. This would invitedanger which has to be faced byhuman. Environment destructionwithout any constructive effort inrestoration will cause inevitablemisery. Increasing awareness hasmade environment an importantglobal issue.

RegionalIncreasing globalization is one of

the factors affecting the dynamics ofregional security. Other influentialfactors are the roles and interests oflarge countries, and, added to that,are the problems of inter-state rela-tions within the region.

\f

The Role of Major CountriesIn South East Asia, there is a shift

in regional security issues, for exam-ple in various conflicts which startedfrom territorial disputes, the securityof sea communication and tradinglines through the sea, and alsonontraditional security issues such asterrorism, hijacking and piracy at sea,weapon smuggling, illegal migration,and illegal fishing. Besides affectingthe countries within the region, thedynamics of regional security, es-pecially in South East Asia, is affectedby the power of large countriesbecause of their interest in SouthEast Asia.

The United States, the only superpower, has substantial interests in allregions of the world, including SouthEast Asia; which includes political,economic, and security interests. TheUS determination to maintain andachieve its interests is beyond doubt,because it has the capability to do so.US superiority as the World power issupported by technological mastery,economic strength, military force,and domestic politics. The US willmaintain this superiority and achieveits national interest. Therefore, US isstill interested and still has a signifi-cant role in South East Asia regionaland global security issues.

The People's Republic of China'sgreat economic progress has posi-tioned itself as one of the big andimportant states, both regionally andglobally. To maintain this progress,China will make efforts to achieve itsnational interest. These efforts willreach out to different parts of theworld and China will use all the in-struments of international relations.Large and smaller countries in theAsia Pacific region cannot ignore Chi-na's role in regional security, becauseof its clear interest and strong mili-tary forces. It is reasonable to say thatChina's interaction with the mainforces of the region, namely US, Ja-pan, Russia and European Union, isan influential factor in the map ofregional security, especially in AsiaPacific. Regarding regional security,there is still tension between Taiwanand China, and there has not been

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any sign of peaceful resolution. TheChina - Taiwan relation is still a fo-cus of attention for the internationalc o m m u n i t y .The uncertaintyof a peacefulresolution be-tween Chinaand Taiwan willcolour securityprospects inAsia Pacific re-gion and theWorld in gen-eral.

Japan is a powerful economicforce and supplier of industrial prod-ucts, as well as a major importer ofoil and natural gas. Japan's economyreaches the whole world and its in-ternational trade represents part ofthe effort to pursue its national in-terest. The security of Japan'seconomy is very much affected by thesecurity of its international tradeand therefore Japan pays great atten-tion to regional and global security.Thus, Japan has a strong interest inthe World security and stability. Ja-pan also has influence on efforts toachieve regional and global security.Therefore, Japan's political stand willalways be calculated by large coun-tries in the world, and will be anequalizing force for the stability ofregional security.

The European Union (EU) is anorganization whose members aremainly industrial countries; it has

great economic power and a largerole and influence in the globaleconomy. Economic relations be-

tween EUmembers andcountries inSouth EastAsia regionhave devel-oped in such away that EUmembers havesubstantial po-litical and eco-

nomic interest in South East Asia,both as a market and as a sup-plier of raw material. ThereforeSouth East Asia is of strategic valuefor the EU.

V The Issues of Regional Waters Security

Based on the year 2001 data fromthe International Maritime Bureau(1MB) Kuala Lumpur, 213 reportedhijacking and piracy cases happenedin Asia and Indian Ocean waters, with91 of the cases taking place inIndonesian waters. However, Indone-sian Government data shows that inthe year 2001 there were 61 cases,which were categorized as hijack andpiracy and which took place inlocations spread in all regions ofIndonesia. Even though there isdifference in numbers declared bythe 2 institutions, the data shows thatsecurity in Indonesian waters in thelast decade has faced threats andserious security disturbances,which now need immediateaction.

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International Maritime Organiza-tion (IMO) declared that acts of pi-racy in Asia Pacific waters, especiallySouth East Asia region, are at thehighest level in the world. Pirates useboth traditional weapons and hightechnology equipment. Security atsea is complex, as one country's ef-fort to defeat piracy cannot be effec-tive and security efforts must involvemany countries and internationalorganization. Therefore, the effort toachieve security in the sea needs closeinternational cooperation.

Besides pi- ,. , ...racy, humans m u g g l i n gthrough AsiaPacific watersalso increases.Australia, onthe southernflank of SouthEast Asia, is oneof target coun-tries of illegal immigrants. This meansSouth East Asian, including Indone-sian waters, becomes a sea lane toAustralia. Human smuggling shouldnot be regarded as a simple matter,on the contrary, it is very compli-cated because several countries areinvolved, and each may have differ-ent interests, especially in security,humanity, economy, and politics.Large scale illegal migration is oftencarried out by mafia organizationswith international networks. Illegalmigration has a negative impact onboth the destination country and

transit countries and often causespolitical and socio-economicproblems and international tension.There have recently been cases of thesmuggling of workers, babies, andwomen.

Smuggling activities in South EastAsian international waters have beenwidespread in the last decade; andinclude smuggling of weapons,ammunition and explosives. Thisillegal activity has political, economic,and security repercussions in thedestination country. In particular

weapon smug-gling can createa serious prob-lem, threateningthe stability ofthe destinationcountry.

Piracy andsmuggling de-scribed above

are illegal actions which cause lossesfor both the countries in the regionand the countries that use the waters.These illegal actions are organizedcarefully, and thus need internationalcooperation to overcome them.

^The Issues of BordersUncertainty regarding the

delineation of borders can. be thesource of international disputes.In addition, border crossing andcontrol problems, the stealing ofnatural resources and othergeographical considerations

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also have the po-tential to agitateinternational rela-tions.

In South EastAsia region, bor-der issues exist be-tween severalcountries andthere are concernsin the South ChinaSea. Indonesia alsohas border prob-lems with other countries, and sharesborders with 10 neighboring coun-tries: Malaysia, Singapore, Thailand,India, the Philippines, Vietnam,Papua New Guinea, Australia, Palau,and Timor Leste.

• Indonesia - Singapore BorderSand mining around the area of

Riau Island - an area which has a di-rect border with Indonesia - has beengoing on since the year 1970. Thisactivity has dug out millions of tonssand and caused tremendous de-struction of coastal ecosystem. De-struction of the ecosystem caused bysand mining has eliminated somemeans of livelihood of Indonesianfishermen.

Sand mining also threatens theexistence of several small islands;such as in the case of Nipah island.Small islands sink and represent agreat loss for Indonesia, becausechanges on coastal geographic con-ditions will result in determining the

maritime demarcation line with Sin-gapore in the future.

• Indonesia - Malaysia BorderIndonesia - Malaysia maritime line

have not been agreed upon in sev-eral areas of the Malacca Straits.Unclearness of this maritime line of-ten causes frictions between field of-ficers, Indonesian fishermen andMalaysians.

Similarly in Kalimantan; severalborder points have not been com-pletely agreed by both parties. Otherproblems between the two countriesare border crossing, illegal logging,and smuggling. The General BorderCommittee (GBC) and Joint Indone-sia Malaysia Boundary Committee(JIMBC) are formal bilateral forumswhich could solve the border prob-lems between the two countries.

• Indonesia - Philippines BorderOne of the issues to observe is the

fact there is yet no agreement on the

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maritime line between Indonesia andthe Philippines in the North andSouth of Miangas Island. The RJ-ThePhilippines Forum, Joint Border Com-mittee (JBC) and Joint Commissionfor Bilateral Cooperation (JCBC) haveregular meetings which could beoptimalized to bridge the problemsof state lines bilaterally.

• Indonesia - Australia BorderState line agreement between RI

and Australia covers the ContinentalShelf Agreement and Exclusive Eco-nomic Zone which refers to RI-Aus-tralia agreement signed on March14th 1997. The RI-Australia new stateline around the area of Timor gapshould be discussed trilaterally withTimor Leste.

• Indonesia - Papua New GuineaBorder

Indonesia and PNG have agreed onmaritime and land borders. However,there are some cultural obstacleswhich could cause misunderstanding.Cultural similarities and family bondsamong people who live on both sidesof the border may cause claims on tra-ditional rights that might develop tobe a complex problem in the future.

• Indonesia - Vietnam BorderThe border area between Sekatung

Island in Natuna archipelago andCondore Island in Vietnam has a dis-tance of less than 245 miles, and con-tours the continental shelf with nocontinental border. This still createsdifferent comprehensions between

the two countries. At the momentboth parties are negotiating to decidehow to delineate the continental shelfin the area.

- '• Indonesia - India borderThe State line between the two

countries lies between Rondo Islandin Aceh and Nicobar Island in India.The maritime border on the continen-tal shelf has been agreed by bothcountries. However problems some-times occur due to violation of terri-tory by both countries, especially byfishermen.

• • Indonesia - Thailand BorderGeographically, state line issues

between RI and Thailand are not verycomplex; because the distance be-tween the tip of Sumatra and Thai-land is great. RI - Thailand alreadyhave a continental shelf agreementbased on 2 particular coordinates innorthern part of Malacca Strait andAndaman Sea. Fishing by Thai fish-ermen in Indonesian territory is amatter of sea security and indeed,fishing by foreign fishermen is asocio-economic issue due to the ex-istence of Indonesia's coastal commu-nity./

'•/ • Indonesia - Republic Pala u BorderSo far both countries have not

agreed on the Exclusive EconomicZone of Indonesia and Palau, whichis located north of Papua. This causesfrequent disagreement over territo-rial violations between fishermenfrom both countries.

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• Indonesia - Timor Leste BorderCurrently, a number of Timor

Leste citizens who live on the borderstill use the Rupiah, the Indonesianlanguage, and interact socially andculturally with Indonesian commu-nity. Similarities in culture and fam-ily bonds among villagers who liveon both side of the border, couldcause claims based on traditionalrights and develop into a more com-plex problem. Furthermore, a largenumber of refugees from Timor Lestestill live in Indonesian territory. Thiscould become a border problem inthe future.

NationalCareful observation of national

progress and developments in theareas of politics, economy, and se-curity show that domestic issues arerelated to exter-nal influence,both global andregional. Be-sides externalinfluence, thereare also somedomestic fac-tors which havethe potential todisrupt the stability of nationalsecurity. These factors are, amongothers, negative side of heterogeneity nature of Indonesia's popula-tion, poor economic conditions, andpolitical and social factors. Accumu-lation of external and internalfactors can escalate as threats tonational security and large scale

GAM's identity

disturbances can disrupt regionalstability.

Armed Separatist MovementsOne kind of domestic threat is ac-

tion by separatist groups in severalareas of NKRI. At the moment thereare 2 separatist groups who are try-ing to part from NKRI; they are FreeAceh Movement (GAM) and FreePapua Organization (OPM).

The actions of separatist groupsin the form of crime and violencehave resulted in disruption of theorder of society and have caused notonly caused material losses and casu-alties, but also people have evacuatedand governmental functions havebeen disrupted.

The government's concern andpriority in theeffort to create abetter life for thepeople in thoseareas is not sharedby the separatistgroups. The reso-lution of separa-tist issues has be-come more com-

plex because the separatist groupshide behind human rights issues, andseek support from outside thecountry.

1 TerrorismTerrorism has become a concrete

threat to the safety of the nation,even a threat to democracy and civil

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society. Since the year 1999 until thebombing in Bali on October 12th

2002, terrorist activity in Indonesiahas increased.

The following is a list number ofterror acts which occurred in Indo-nesia:

• Bombing of Toserba RamayanaJakarta on January 2nd 1999.

• Bombing of Kelapa Gading Mallin Jakarta on February 9th 1999.

• Bombing of Hayam WurukPlaza Jakarta on April 15, 1999.

• Bombing of Istiqlal mosque in1999 which destroyed several roomsand facilities in the mosque.

• Bombing of GKPI Church inMedan on May 28th 2000 and Catho-lic Church on Jalan Pemuda Medanon May 29th 2000.

• Bombing of the Attorney Gen-eral Office building in Jakarta, July4th 2000.

• Bombing of General ElectionCommittee Office in Jakarta on July1st 2000.

• Bombing in front of the Philip-pines Embassy on August 1st 2000,

killed 2 people, injured22, caused material lossincluding destroying 29vehicles.

• Bombing in front ofDepartment of Agricul-ture office building on Au-gust 30th 2000, destroyed1 passenger bus.

• Bombing of JakartaStock Exchange Buildingon September 13th 2000,

killed 15 people, injured 37 and de-stroyed 81 vehicles.

• Bombing of Atrium Senen build-ing in Jakarta, on December 11th

1998, August 1st 2001 and Septem-ber 23rd 2001.

• Bombing of a number of chur-ches on Christmas Eve year 2000 and2001.

• Bombing in Bali on October 12,2002, killed and injured more than200 foreign citizens and Indonesiancitizens, and caused material loss.

• Bombing of Me Donald's inRatu Indah Mall in Makassar on De-cember 5th, 2002, killing 3 people.

• Bombing of Wisma Bhayang-kari in the Police Headquarters Com-plex, South Jakarta on February 3rd,2003.

the Issues Communal ConflictThe composition of the Indonesiancommunity is heterogeneous, to-gether with the geographical char-acteristic of an island-nation, makesit easy for communal conflicts tohappen. Communal conflict could betriggered by ethnic, religious, racial,

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and inter-group exclusivity, and thesocial-economic gap. In addition, massmigration from one area to anotherarea affects the local culture and wayof life, and could become a source ofconflict. Conflicts which happened inMaluku, South Sulawesi (Poso),Kalimantan (Sanggau Ledo, Sampit,Sambas), are concrete examples ofcommunal conflict. The loss caused bycommunal conflict is enormous; itcauses waves of evacuation, tremen-dous suffering for the people, casual-ties, and large material loss. The big-gest risk of a com-munal conflict isruined nationalsolidarity and thebond of unity asa nation. Apartfrom that, large-scale damage toinfrastructure,social facilitiesand public facili-ties disrupts governmental activities,interrupts community service activi-ties, and disrupts education.

The people of Indonesian areprone to provocative actions, thusmaking it easy for communal conflictto develop fast and widely, and cre-ating a hindrance to public orderwhich might escalate and disrupt sta-bility of national security. Heteroge-neous community structure, low edu-cation level, and the residual eco-nomic crisis, create an opening whichcould be used by groups who wantto disrupt national stability.

/Radical Group MovementsIndonesia's history of struggle is

filled with experiences in terminat-ing various radical movement insidethe country, such as DI/TII, PRRI,Permesta, and PKI. These movementshave different backgrounds: religion,ethnicity or locality, ideology andpolitics. The government succeededin eradicating these movements byusing military force.

Entering the 21st century, ideo-logical issues are driven aside by glo-

bal issues: de-m o c r a t i z a -tion, humanrights, andenvironment.So strong isthe World'sattention toglobal issuesthat ideologi-cal issues are

shifted and no longer popular. Fordeveloped countries whose peopleare already mature in politics, ideol-ogy is no longer a matter of dispute.This is not however the case in de-veloping countries such as Indonesia;ideology often becomes a nationalmatter. Ideology is even manipulatedto gain special interest or politicalgoals.

Indonesian history since independ-ence to this day - shows that ideologi-cal issues emerge from time to time.When Indonesia declared its inde-pendence, Pancasila was declared

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Fl)

as the state ideology. However, therehave always been groups who triedto change Pancasila with other ideol-ogy. Different efforts were made bythese groups, through political meth-ods or through armed struggle. Thesegroups' efforts still continue to thepresent day, and will likely continuein the future.

The ambiance of democratic free-dom and respect for human rightsseem to give opportunities for radi-cal movements toresurface. By ma-nipulating popu-lar issues duringthe reform era,radical groupsuse new methodsor sneak into cer-tain groups sothey appear as ifthey support thereform move-ment. Some of the radical groups ex-isting today are incarnation ofgroups which in the past felt left out.These groups have a network spread-ing all over Indonesia, even abroad.There is possibility that they are apart of an international terroristnetwork.

Besides those rooted on ideology,there is also radicalism in anotherform; for instance religious radical-ism. Conflicts in Maluku and Pososhowed the existence of suchgroups. Religious faith has been ma-nipulated deviously to influence

and convince some groups of believ-ers that their fight is holy, so thatthey do not hesitate to use whatevermeans to achieve their goal. Thesegroups are known as RadicalGroups; their existence disruptspublic order and in turn will ob-struct national security.

Social UnrestsIndonesia's economic condition

has not yet fully recovered from themonetary and economic crisis in

1997 and has^ iiP caused several

crucial prob-lems. Lack ofemployment inthe midst of ag r o w i n gworkforce In-donesian, laborissues, fluctu-ating value ofrupiah, invest-

ment issues, free trade issues, andother issues, has placed a greater bur-den on the government. Even thoughthese issues started from economicissues, they could develop into po-litical issues. Political issues whichcreate worry and distrust of the gov-ernment and in the future, finallycould create mass unrest which couldescalate to be a disturbance to na-tional stability and threaten nationalsecurity. The widening of economicgap has the potential to create socialinsecurity, especially if manipulatedby certain groups who want toshatter Indonesia.

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Maritime Security DisturbanceIndonesia, with more than

17,500 islands, is the biggest island-nation in the world. Two thirds ofIndonesian region is the sea, with81,000 km coastline and 4 millionsquare meters of Exclusive Eco-nomic Zone.

International trade and transpor-tation activities through Sea Lane ofCommunication (SLOG) and Sea Laneof Transportation (SLOT) in Indone-sia's waters keep on increasing. Theincrease in water activities gives the

Lately, sea security issues haverequired serious attention. Sea se-curity issues cover violence threat(hijacking, piracy, and terror of vi-tal object), navigation threat (lackof and theft of navigation instru-ments), resource threat (destruc-tion and pollution of the sea andits ecosystem), and law and sover-eignty threat (illegal fishing, ille-gal immigrant, illegal explorationand exploitation of natural re-sources, including treasure taking,products and weapon smuggling,and wood smuggling via the sea).

sea a very important role in the lifeof the Indonesian people and the in-ternational community. The impor-tance of the sea is not limited to thewealth of natural resources, but alsoas a tie for the islands spread in theIndonesian region. Therefore, sea se-curity is vital to Indonesia.

Sea security issues have the abilityto disrupt Indonesia's internationalrelations.

Data shows that illegal fishing inIndonesia's sea territory keeps on in-creasing, with total loss if US$2 bil-lion per year. From smuggling, Indo-

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nesia bears the loss of US$ 1 billion peryear. Illegal sand exploitation costsIndonesia more than 2 trillion rupiaheach year. Meanwhile illegal loggingcosts Indonesia around 30 trillionrupiah. This worrying loss requiressystematic efforts by the people andgovernment to improve security anduse of Indonesian waters.

Air Security DisturbanceIndonesia's strategic position in

international air traffic, makes Indo-nesia vulnerable to different air se-curity threats. Potential air securityissues in the future include violentthreats (air hijack, vital object sabo-

tage, terror), air violation threat (il-legal flights and surveillance of In-donesian territory), resource threat(usage of air territory by other coun-try), and law violation threat throughthe medium of air (illegal migrationand human smuggling). In foresee-ing and securing air territory fromall kinds of disturbance and threat,Indonesia still has many weaknesses,including human resource, and infra-structure.

Security of the sea and air is notmerely Indonesia's interest, but alsoin the interest's regional and inter-national security.

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Threat Predictionand Strategic

Defence Interest

INDONESIA

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1]

Chapter FourThreat Predictionand Strategic DefenceInterestThreat Prediction

Indonesia's geographic situationas an archipelago between Asia andAustralia and between the Pacific andIndian Oceans makes Indonesia anarea of interest for countries of manyregions. This strategic position meansthat political, economic, and securityconditions at both regional and glo-bal levels are influential factors inassessing Indonesia's position in theregion and the world. In the era ofglobalization which is the 21st cen-tury, the progressof regional andglobal strategiesare even more in-fluential on thenation, due to theacceptance ofuniversal valuessuch as freetrade, democrati-zation, human rights, and environ-ment.

The existence of large countries'interest in the region promotesstrong mutual relations betweendomestic and foreign affairs. Infor-mation on internal occurrences can

quickly spread round the world, fol-lowing which other countries willrespond according to their nationalinterest. On the other hand, infor-mation about happenings abroad,especially those in large or influen-tial countries, or in the countries inthis region, will quickly reach all ar-eas of the country and will affectnational opinion.

This is also the case with securityissues; threats from outside and in-

side the countryare inevitablylinked andshould not beregarded in iso-lation. Distinc-tion can only bemade in thecontext of theform and or-

ganization of threat; while distinctionbased on the source of threat is verydifficult to determine. Proceedingfrom this fact, defence effort does notonly refer to traditional securityissues - that is to say the possibilityof invasion and aggression fromanother country - but also to

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nontraditional security issues - thatis any action that threats the sover-eignty of the country, unity of theregion, and safety of the nation andNKRI.

The current strategic environmentrenders the threat of invasion or mili-tary aggression low. Indonesia's ob-jective condition, the role of UN, andinternational opinion are preventivefactors, or at least constrains on theuse of armed force against Indone-sia. The largest foreign threat to In-donesia is from organized crime,done by non-state actors to gainprofit by manipulating domestic con-ditions and the shortcomings of gov-ernment apparatus.

There has been dynamic change inIndonesia since 1998 which has af-fected community, nation, and state.In this time span, there have beenthree changes of national leadershipillustrating a frail body of nationalleadership and a political order yetto be fully established. Political insti-tutions are still searching for the right

political order, and the political eth-ics and system to meet the needs ofIndonesia.

v The reform process which aimsto produce a democratic life andclean and good government, facesdifficult challenges. The road toreach the objectives of reform ap-pears to become longer. The spiritof reform slowly fades the empha-sis that surfaces is only rhetoric andreform euphoria. The right of free-dom of speech is often abused andcan insight violence and mass dem-onstration. The systematic efforts ofpressure groups irritate govern-ment, creating insecurity and mak-ing the government position unsta-

ble. National securitymanagement is weakenedadversely affecting na-tional security.

^ The unresolved eco-nomic crisis has impacts onother fields, on politicalstability and national eco-nomics, and increasing se-curity disturbances. Thenumbers in the work forceescalates rapidly as a result

of the increase of population, whilework opportunity is limited. Anumber of companies are unable tosurvive and have to stop their busi-ness, making the employment envi-ronment worse and increasing unem-ployment severely. The increase inunemployment contributes to theincrease in crime figures.

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On the other hand, the growingfanaticism of ideologies other thanPancasila obstructs governmentaland social functions and to a certainextent might grow into radicalism.The government essentially strives toincrease the quality of life for exam-ple by the declaration of nine-yearcompulsory education, improvementof health arrangements and other im-provements in the quality of life.However, the quality of human re-source is still unsatisfactory and farfrom ideal. As a result, people areeasily manipulated and influenced bycertain party's provocative actions,and may even be easily encouragedto actions outside the societal norms.The unavoidable impact of globali-zation weakens the ties of unity ofthe nation and defence. Unstabledomestic conditions and multidimen-sional problems faced as a result ofthe unresolved national crisis, givesan opportunity for the escalation ofnational security disturbances.

Unless dealt with appropriately,the disturbances described above willhave a serious and negative impacton the sovereignty, unity and safetyof the nation, and then become anational security issue. Public orderdisturbances such as terrorism, com-munal conflicts with primordial back-ground (ethnic, religion), radicalism,chaos or mass protest, the drugstrade, gambling, and other crimes canescalate and become threats to na-tional security. The changes whichoccur as consequences of reform and

which weaken the management ofnational security may have negativeimplications for the stability of na-tional security. It is anticipated thatthis situation will pertain for sometime to come.

v In a strategic context, Indonesia'sdefence interest may be affected infuture by the following predictedthreats and disturbances:

• International terrorism whichcombines an international networkand support within the country.

• Separatist movements whichtry to part from NKRI especiallyarmed separatist movements, whichthreaten the sovereignty and unityof Indonesia.

• Radicalism with primordialbackground of ethnic, race, and reli-gion, and ideologies other thanPancasila, whether on its own or hav-ing connection with foreign influ-ences.

• Communal conflicts, whichmay have their basis in social andeconomic matters, can develop intolarge-scale inter-ethnic, inter-reli-gion, or inter-race conflicts.

• International crime such assmuggling of products, weapons,

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ammunition and explosives, humansmuggling, drugs, money launderingand other forms of organized crime.

• Illegal immigration where Indo-nesia may be both a destination anda stepping stone to get to other coun-tries.

• Sea security threats such as hi-jack and smuggling, illegal fishing, pol-lution and destruction of ecosystem.

• Air security threats such as airhijack, violation of air territory, andterrorism through means of air trans-portation.

• Destruction of the environ-ment such as forest burning, illegalforest exploitation, disposal of dan-gerous and poisonous waste.

• Natural disaster and its impacton the safety of the nation.

National InterestIn the essence, Indonesia's na-

tional interest is to guarantee thewelfare of all of Indonesian peoplewho are within NKRI, which is basedon Pancasila and The 1945 Constitu-tion. Therefore, it is important tomaintain NKRI with national jurisdic-tion from Sabang to Merauke. Indo-nesia consists of 17,504 islands in a

very strategic position between Asiaand Australia, and between Pacificand Indian oceans. On account of In-donesia's strategic position, manycountries, especially large countries,have an interest in Indonesia's sta-bility and security. The importanceof Indonesia means that other coun-tries maintain a high level of interestin its stability and security.

Furthermore, Indonesia's largepopulation (around 210 million) andhigh plurality (ethnic, religious, ra-cial groups), have both positive andnegative dimensions which help toformulate Indonesia's national inter-est. Therefore, the unity of the na-tion and the wholeness of Indonesia'sregion are Indonesia's geopolitical in-terests. These geopolitical interestsdevelop two dimensions of basicthoughts: area as a reality, and com-munity life as a life phenomenon. Thestruggle to fulfill national interest isstill based on two dimensions ofthought. As inscribed on the pream-bles of The 1945 Constitution, Indo-nesia's interest is to protect the sov-ereignty of the country and maintainthe unity of Indonesia, protect thesafety and honor of the nation, andactively take part in the efforts ofworld peace.

Indonesia's Strategic De-fence Interest/ The strategic aim of Indonesia'sdefence is basically to achieve a de-fence organization which is capableof guaranteeing the national inter-

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est. Therefore,defence has therole and functionto maintain Indo-nesia's existencefrom every threatand disturbance,both from outsideand inside thecountry.

Based on threatprediction and In-donesia's nationalinterest, the future strategic interestof defence covers permanent strate-gic interest, urgent strategic interest,and international cooperation in thefield of defence.

Permanent Strategic InterestPermanent strategic interest of

defence is the administration ofdefence to guard and protect thecountry's sovereignty and theunity of Indonesia and the coun-try's honor from every threat,from outside as well from insidethe country.

Even though the threat predictionshows little possibility of outsidephysical threat directed at sover-eignty, as a country which is inde-pendent, has sovereignty and dignity,it is a duty and strategic interest tobe prepared to defend the countrywithout regard for the argument asto whether or not a concrete threatexists. Furthermore, development ofdefence forces will take longer than

the political dynamic which may pro-duce a threat.

In carrying out permanent de-fence interest, Indonesians will al-ways maintain a love for peace, in-dependence and sovereignty. The useof defence force for war is a last re-sort after diplomatic efforts fail. Inresolving every conflict and dispute,Indonesians will always first put for-ward the use of peaceful means.Along with this principle, Indonesiansare against any form of colonialismand intervention in other nation'ssovereignty. Therefore, Indonesiachooses an active defensive in its de-fences.

To guarantee permanent interest,defence administration is done withintegrated system; involving all peo-ple and resources, and nationalmeans and infrastructure in unity ofdefence. Involvement of all people indefence is the right and responsibil-ity of all citizens as instructed by

Defend ing The Country Entering the 21st Century 39

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The 1945 Constitution, and reflectsthe dignity and responsibility of anation which believes in its own ca-pability. As a result, Indonesia's de-fence is based on principles of democ-racy, respect for human rights, pub-lic welfare, environment, nationaland international law, and the prin-ciple of peacefully living side by sidewith other countries.

Urgent Strategic InterestUrgent strategic interest of de-

fence is basically inseparable fromthe permanent strategic interest of

bance which threaten national stabil-ity, particularly in several areas ofIndonesia. These concrete threats anddisturbances are in the form ofnontraditional threats and a numberof actual issues which emerge withinthe country.

\j Urgent strategic interests of Indo-nesia's defence covers:

• Fighting and overcoming theinternational terrorist threat at homeand abroad by working together withother world forces.

• Overcome the threats and dis-

defence. Urgent strategic interest isdirected to overcome actual securityissues, which are actions which candisrupt Indonesia's sovereignty andunity, and disturbances to the na-tion's safety and dignity. Observingpresent national situation, there areseveral concrete threats and distur-

turbances of armed separatism,prioritized in Aceh to face the FreeAceh Movement; and in Papua to facethe Free Papua Organization.

• Counter radicalism which hasa background of ethnic, race, religion,and ideologies other than Pancasilaand which can endanger the safety

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and dignity of the nation and thegovernment.

• Solve communal conflict andhelp rehabilitation in several areas-Maluku, South Sulawesi (Poso), andKalimantan (Central and West). Be-sides that, strategic interest of de-fence is also directed to prevent anypossibility of new communal conflictin all areas of RI.

• Overcome and prevent interna-tional crime which might occur onland, in the sea or in the air.

• Assist Civil Government (Re-gional Government) in handlingnatural disaster, terrorism, commu-nal conflict, social unrest or any otheracts which cause disruption of gov-ernmental functions and communityservices (such as transportation, edu-cation services, and health services).

International Cooperation InterestAs a part of the international com-

munity, Indonesia cannot release it-

self from a connection with the worldin the effort to achieving its nationalinterest. Therefore, defence policy isalso directed towards having goodrelations with other countries,regionally as well as globally.

International cooperation is basedon the principle of government-to-government cooperation, focused ondevelopment and advancement in thesector of defence, and also to achieveregional and global stability and se-curity. In this area, Indonesia's de-fence sector will always contributestrategic thought in order to solvesecurity issues, or contribute physi-cal involvement under the UN. In-volvement in the sector of defenceoutside the UN can be carried out aslong as it is not against the law andprinciples of Indonesia. Physical in-volvement in the sector of defence iscarried out after the government'spolitical decision.

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Strategic Policiesfor National Defence

Implementation

INDONESIA

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Chapter FiveSrategic Policies for NationalDefence ImplementationStrategic Concept

The struggle of the Indonesian peo-ple has succeeded in freeing the In-donesian people from colonization,founding the Unitary State of the Re-public of Indonesia (NKRI), free andsovereign, with territory from Sabangto Merauke. The freedom and sover-eignty which is very precious and in-valuable is the inheritance of the na-tion. It is the honor and the self-re-spect of the Indonesian people. Allcomponents of the Indonesian peo-ple are obliged to guard and protecttheir freedom and sovereignty for na-tional development.

In entering the 21st century, Indo-nesia's defence has three main pil-lars which are: the use of defenceforce; international cooperation inthe field of defence; and developmentof defence force. Therefore, the mainguidance to keep defence at a strate-gic level is in the form of the threemain pillars above, i.e. defence force'sapplication policy; the internationalcooperation policy in defence field;the policy on the development de-fence force.

Traditionally, a soldier is one of theinstruments of national force, being

prepared to counter a threat in theform of military power. It is the dutyof the TNI to carry Military Opera-tions (MO) and Military OperationsOther Than War (MOOTW). MO is amilitary operation in countering mili-tary power of an opposing country,either in the form of invasion, aggres-sion and infiltration. MOOTW is amilitary operation being carried out,not in the framework of war againstanother country, but in such areasas counter insurgency, in combatinginternational crime, aid to the civilcommunity, humanitarian and peacetasks.

The present strategic context indi-cates that the likelihood of aggressionor invasion by another state is a small

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possibility. Whereas it is highly prob-able that new threats such as non-traditional threats, carried out by nonstate actors, will develop. The non-traditional security threat is, at first,a threat against security and publicorder. However, it is possible for athreat to develop to such a stagewhere it will become dangerous to thesafety of the people and in order toprevent escalation it may be neces-sary to deploy military force. It is es-timated thatnon-traditionalthreats aremore likely tobe encounteredby Indonesianpeople. There-fore, the strate-gic policy of theIndonesian de-fence to en-counter and re-solve the non-traditional is anurgent prior-ity. This is inline with the mandate of The ActNo. 3/ 2002, i.e. TNI has a duty tocarry out a Military OperationsOther Than War (MOOTW).Thereby, defence policy is to carryout an MOOTW when required. Inthis case, TNI is very experiencedin MOOTW operations, eitherwithin the country or overseas.

In carrying out the MOOTW, TNIwill not take over the role of the func-tional government agency. In the

MOOTW, the TNI does not always takea solitary role. In certain situation,the TNI implements the MOOTW to-gether with a functional governmentagency in synergic and coordinatedjoint operations. In accordance withthe form of threat, the MOOTW iscarried out by the TNI by prioritizingpreventive action, rather than repres-sive action. The success of the pre-ventive action will be able avoid casu-alties and more negative impact.

TNI implement MOOTW throughactive participation to resolve vari-ous problems that are encounteredby the Nation. Other than confront-ing any armed threats, the MOOTWis a manifestation of TNI's participa-tion in overcoming difficulties in vari-ous aspects of the community life.The scope of the MOOTW includes,among others, putting down anarmed separatist movement, counterterrorism, overcoming radicalism,overcoming communal conflicts, pro-

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viding assistance to civil governmentin restoring public order, overcom-ing impact of natural disaster, refu-gees handling, search and rescue, aswell as implementing the tasks ofworld peace.

MOOTW may create an impressionon the confusion or an overlap be-tween the role of TNI with other in-stitutions, especially on the author-ity of the Indonesian Police (Polri) inthe case of general security and pub-lic order. The confusion for some peo-ple will not arise if People Consulta-tive Assembly (MPR), Decree No. VIand VII of 2000 are comprehended.The role of the TNI as a defence forceis the use of armed force to overcomea threat, whereas the Polri is to es-tablish security and public order ac-cording to the rule of law. Defence isthen defined in The Act No. 3 of 2002,among others, to stipulate the taskof TNI. The task of MOOTW that ismandated is not meant to take overthe task of other functional govern-ment agency, either the Polri or otherelements of the government. Eachtask of defence will be held firmly andis guided on the objective of defencei.e. establishing the sovereignty of thestate, maintaining the intactness ofthe national region, and keeping thesecurity and the respect of thenation.

In the strategic context, defence isone of many efforts to create nationalsecurity through military power. Inline with defence, to maintain national

security peacefully is through theinstrument of politics and economyi.e. utilizing diplomacy and or eco-nomic power or their combination.The support of Defence for thenational security acts as the firstdefensive shield. It can change tooffensive and oppressive function ifthe shield fails. Therefore, Defence cannot be separated from a wider secu-rity issue.

In the perspective of a spectrumof escalating threats, which may beagainst national security, the institu-tional separation between the TNIand Polri provides a reason to firmlystipulate the authority and responsi-bility of the two institutions. For thatpurpose understanding and furtherregulations are needed concerningthe escalation and levels of threatsthat necessitates TNI's involvementas part of TNI's legal authority. Thereis a need to form of cooperation be-tween the TNI and Polri in overcom-ing escalating threats, especially apoint of contact of the authority andresponsibility. The approach to thereview of the authority and respon-sibility of both institutions must restwithin the framework of the nationalinterest, and not of any sectoral in-terests. Ambiguities of authority andinappropriateness of responsibilitieswill invite risks for the security of thepeople and the country. The roles ofthe TNI and Polri in that total secu-rity framework needs to be stipulatedbased on the escalation level andthreat spectrum.

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In the context above, the task ofthe TNI in MOOTW is described in themodel on the next page.

The left extreme point shows anideal condition in which there is rela-tively no threat, thus the presence ofthe TNI is not needed. In a conditionwhere the threat spectrum is in theform of criminal act, the full securitymanagement becomes the authorityof the Polri. The next step of escala-tion is in form of an unstable anddangerous situation which can beclassified as a low intensity conflictsituation. Low intensity conflict is likean armed rebellion, spreading com-munal conflict, on-going and large-scale disruption that hinders publicorder, governmental function andpublic service. Actual examples areconflicts which occurred in Poso,Maluku, CentralK a l i m a n t a n ,and WestKalimantan sev-eral years ago.In this case,tackling theconflict cannotbe carried outin a normal wayor merely by afunctional government agency, it re-quires special resources.

If a threat keeps increasing to thepoint of becoming a critical situation,the status of the region is shiftingfrom Civil Order to EmergencyOrder; the involvement of the TNI

will become greater. In a MilitaryEmergency, the involvement of theTNI is still of the MOOTW task. Thetype of MOOTW that is carried outby the TNI reflects the type and im-portance of the threats being en-countered.

In a War situation, the conflict thatoccurs is between the two countriesusing armed force, supported by di-plomacy and economic power. In thiscase, the TNI no longer carries outits MOOTW task, but fully carries outthe military task. The elements ofcivil government and Polri are stillpossible to implement their author-ity and responsibility in regions thatneed their services.

The Use of Defence ForcesStrategic policy for using defence

force is di-rected to coun-ter threats anddisruptions tonational secu-rity, whatevertheir typesand forms. De-fence force isnot only usedto counter a

threat, but also helps the govern-ment in national development andinternational tasks. Threat analy-sis and prediction show that Indo-nesia's strategic interest should pre-pare to prevent and overcome bothtraditional and non-traditional se-curity threats.

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Illustration the Task of TNIin MOOTW

WAR

PEACE CIVIL

LOWINTENSITYCONFLICT

ORDER

THREAT ESCALATIONINSECURED

im

o

CRITICAL

Overcome Traditional Security ThreatsOne of the main objectives of De-

fence is to defend Indonesia from atraditional security threat, i.e. athreat in the from another country'smilitary power that endangers thefreedom, sovereignty, unity of theNKRI region. Although the militaryinvasion and aggression of Indone-sia is unlikely, it is essential that In-donesia's defence system are kept inplace and at good readiness levels.This is meant to ensure the existenceof defence force capable of maintain-ing the sovereignty and the intact-ness of the the Republic of Indonesiaand its territory. In encountering a

threat against the sovereignty and theunity of the region, the Indonesiandefence policy still refers to the prin-ciple that Indonesian are people wholove peace, but they love freedomeven more.

Indonesia, will always try to settleeach type of dispute with other coun-try through peaceful settlement, andas far as possible avoid the use ofmilitary power. War, as a form of casesettlement, will surely create victimsand suffering for the Indonesian peo-ple. As peace loving people, Indone-sian prioritizes preventive action byoptimizing diplomatic effort through

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the framework of Confidence Build-ing Measure (CBM) and PreventativeDiplomacy. The use of military powerfor the purpose of war must be car-ried out as the last resort, if peacefulways cannot produce results.

To counter the threat of an exter-nal military attack, defence force isarranged in the order of the MainComponent, the Reserve Component,and the Supporting Component i.e.all national resources of Indonesianpeople. The use of TNI which are theArmy, the Navy, and the Air Force aswell as other components of defencefor the purpose of war, is donethrough government's political deci-sion as regulated in the parliamen-tary law, and adjusted with regard tothe objective and threat escalationlevel that is encountered.

Overcome Non-traditional SecurityThreats

Besides countering traditional secu-rity threats, Defence is also directedto counter threats from non-tradi-tional security disruption that, for thelast decade, have shown quite a highintensity. The political dynamics in anumber of countries and the widen-ing gap in the economy world, havemade imbalance unavoidable. Sooneror later these force and imbalancesdevelop and creep over state bordersand create actors who take advantageof vulnerable points in each country.As an archipelagic country, with eth-nic and religious variety, Indonesia isvery likely to be under threat from

non-traditional security disruption.The presence of terrorist acts, piracy,smuggling, illegal immigrants, narcot-ics and prohibited drugs trade areindications of non-traditional threats.

Increasing transnational criminalacts cannot be allowed to develop.Therefore the use of defence capabil-ity against transnational crimes is apriority. Defence sector has deployedArmy and Navy troops, supported bythe Air Force, to secure border re-gions, either land border regions orsea border regions or other placeswith high vulnerability. In encoun-tering transnational crimes, TNI doesnot work by itself, but together withthe relevant government departmentsand institutions. To create an effortof national unity, the TNI always

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i4

1

prioritize coordination and coopera-tion systems with all governmentalfunctional institutions and relatedpeoples components. Given the quan-tity of transnational crimes, regionalsecurity cooperation with other coun-tries is now of increasing importance.

The non-traditional threat thatarises within the country from separa-tism will first be countered by dialog.Dialog is expected to be able to influ-ence the actors to return and have faithin Republic of Indonesia. If dialog doesnot produce a positive response, thenthe use of other, firmer methods islikely to be carried out for the sake ofmaintaining national security, stabil-ity and keeping the establishment ofthe Republic of Indonesia.

• Countering TerrorismThreats from terrorism need

urgent actions and the TNI isdirectly concerned to have arole and function in fightingterrorism in accordance withthe Spectrum of Threats. Infighting terrorism, TNI uses aguideline of Article 7 of The ActNo. 3 of 2002 as a legal um-brella. The other legal basis isthe Government RegulationSubstituting The Act No. 1 and No. 2of 2002 regarding the Eradication ofthe Terrorist Criminal Acts, which hasbeen approved by the House of Repre-sentative (DPR) as a parliamentary law.

In countering terrorist threats, de-fence sector action will be based on

the rule and legal stipulation thatapply nationally as well as interna-tionally. The policy guidelines are asfollows:

# War against terrorism is anurgent need and can be carriedout to protect the sovereigntyof the Republic of Indonesiaand the safety of other peoplewho are in Indonesia as man-dated in the Opening of The1945 Constitution.

« In trying to eradicate terrorism,relevant laws are still consid-ered and human rights are notviolated.

* The use of defence force, i.e.the TNI, in eradicating terror-ism, is not discriminative;meaning that whoever con-ducts a terrorism act will be

countered without judging hisethnicity, religion or group.In overcoming International,local or collaborative terror-ism, integrated and coordi-nated efforts are required bothacross government intitutionsand countries.

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In carrying out the policy above,terrorism can be handledpreemptively, preventively and re-pressively. A preventive effort is car-ried out through infiltration activityor operations to destroy terrorists'bases in the Indonesia's territory, in-cluding operations to discover thewhole terrorist network. To supportsuch objective, the preparation ofspecial anti-terrorist troops, who arefully equipped and trained, as wellas improved intelligence units, is im-portant.

A preventive effort is meant toprevent the region and all peopleof Indonesia, including people ofother nationalities that are in In-donesia, from becoming victims ofterrorist's savagery. To achievethis, early detection and preven-tion by the TNI, either at unit levelor through the development ofcommunications between unitsand personnel are essential. In a

preventative action, the security ofthe Very Important Person(s), ob-jects and vital installations, pub-lic infrastructure, international in-frastructure, and other importantfacilities will be increased. Sup-porting activities, early detectionand prevention such as surveil-lance, identification and othertechnical support will be continu-ously equipped in stages.

A repressive effort is carried outthrough counter-terrorist militaryoperations to eliminate networks of

terrorism inall regions ofIndonesia. Themilitary op-eration mighti n c l u d eamongst oth-ers: com-mando attackon posts andbases of ter-rorists toparalyze ter-rorists, as wellas to free hos-

tages and other operational activi-ties to eliminate terrorists com-pletely. The implementation re-quires through coordination acrossgovernment and, if it is needed,across countries.

A rehabilitation effort is needed torestore a place or a region that is af-fected by the terrorist activities. Therehabilitation implementation efforts

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ty.fn.fe

te

kd

are carried out through coordination vacross government agencies inaccordance with their respectivefunctions.

To ensure prompt handling of ter-rorist incidents, it is important toprepare special units which are readyto move at any time.

The terrorist threat can be do-mestic or transnational, thus itshandling needs cooperation withother countries. In waging war onterrorism, defence cooperationmust include intelligence and othertechnical cooperations. Forms ofcooperation will be further stipu-lated in the future. Having inter-national cooperation does notmean that Indonesia depends onother countries, especially in mak-ing conclusions or decisions aboutan incident which occurs in Indo-nesia. In each case will be treatedindependently by Indonesia; Indo-nesia always has an independentattitude and does not wish to bedictated by other countries. Assist-ance from other countries in theform of information will be re-ceived and assessed as necessary.However, the decision on the actionto be carried out is still the preroga-tive and right of the Governmentof Indonesia. The principle and at-titude of Indonesia in these mattersshould be fully understood by theinternational community, so that itdoes not obstruct good relationsand cooperation in the future.

Countering Armed Separatist GroupThreat in Aceh and Papua

In the last decade there has beenan increase in the armed separatistactions carried out by the Free AcehMovement (GAM) in Aceh and theFree Papua Organization (OPM) inPapua. These separatist groups haveeven developed bases overseas toobtain sympathy and support fromother countries. Meanwhile, destruc-tive actions such as crimes and vio-lence carried out by separatist groupshave significantly increased, espe-cially in Aceh. The criminal acts andviolence have created public uneasi-ness and fear, as well as large num-bers of refugees.

The threat from armed separatistgroup is the domestic affair of Indo-nesia, thus it will be resolved throughmethods of the Indonesian peopleand by considering human rights asuniversal values that must be re-vered. The Act No. 3 of 2002 gives atask to the TNI to overcome armedseparatist threats. So far the govern-ment has made an effort to settle ina peaceful manner through dialog. Inorder to settle conflicts in those tworegions, the government has madeefforts to improve the welfare of thepeople in the regions by giving spe-cial autonomy in the province ofNangroe Aceh Darussalam (NAD) andPapua, as well as by improving de-velopment in the those regions.

AcehThe restoration of security in Aceh

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is a domestic matter for Indonesia,however a participatory role forother party's in pursuit of everlast-ing peace is still appreciated.Thereby, the agreement to end hos-tilities with GAM was signed on 9^December 2002 in Geneva, and hasbeen accepted as a reference towardssteps for a further settlement. Thesettlement mechanism that has beenjointly agreed must be adhered toby all parties. The Government of theRepublic of Indonesia will respectthe agreement and continue withfurther phases with a sincere wishto make GAM to return to the Re-public of Indonesia and build thefuture of the brighter Aceh societyin the frame of the unity of Indone-sia. The road towards an everlastingpeace is still very long and it requiresefforts and mutual hard work be-tween the Government of Indonesiaand GAM. The Government of Indo-nesia still hopes that the mutual wishto realize peace in Aceh will be sup-ported by all parties; including theHenry Dunant Center (HOC) or del-egations from other countries thatare grouped in the Joint SecurityCommittee (JSC).

If in the future, it turns out thatthe peace agreement effort cannotbe well carried out, then the Gov-ernment of the Republic of Indo-nesia, in time, compulsorily has totake other steps in order to defendthe sovereignty of the state, the in-tactness of the national region, andthe safety of the people of Aceh.

PapuaThe OPM separatist group in Papua

has continuously conducted its activi-ties, by patterns of propaganda,provocation, terror, robberies, andpressure on the public. The OPM ac-tions create uneasiness and fearamong the public. The OPM and itssympathizers have increased theiractivity by building an overseas net-work to seek support from the inter-national community. So far the inte-gration of the region of the Republicof Indonesia still gets strong supportfrom the international communitythat views the problem of Papua asan internal affair of the Indonesianpeople. However, it needs to be re-membered that changes in externalpolicies by these countries might al-ter the balance against Indonesia.

Overcoming the OPM separatistgroup and maintaining the territoryas part of Indonesia is a task of TNI.This is implemented first by persua-sive approaches. This is meant tomake OPM separatist parties returnand unite with their brothers withinthe framework of the Republic of In-donesia. However, if such efforts andapproaches do not bring a positiveresponse from the OPM, then theGovernment will consider using othermethods, which may be more effec-tive.

' • Countering Radical Group's Disrup-tion and Threat

Besides countering separatistgroups, Indonesia also counters

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threats and disruptions that are car-ried out by radical groups. Radical-ism in Indonesia generally stems fromideological and political matters. Indeveloping countries, including Indo-nesia, there are several groups ofpeople who are not politically ma-tured. Ideology is often developedinto a need for radical actions thatdisrupt the national security and sta-bility. Due to excessive fanaticism instanding up for their own ideologiesand a lack of political maturity, theactors and their followers are drivento conduct radical actions that canthreaten national stability.

Various radical actions have beenexperienced by Indonesia, in the formof violence and ideology-based rebel-lions. Such actions are, among oth-ers, the rebellion of DI/TII (Darul Is-lam/Tentara Islam Indonesia), the re-bellion of PKI (Indonesian Commu-nist Party) in 1948 and 1965 and thehijack of a Garuda Woyla airplane in

the Don Muang air-port, Bangkok, on31st March 1981.

The use of thea u t h o r i t a r i a npower in the pasthas subdued radi-cal groups, whichdid not develop.However, the refor-mation era tends toprovide an oppor-tunity for greaterfreedom, thus en-

couraging new forms of radical move-ments, fighting for interests and as-pirations that are in contradictionwith the national interest. Such casescan be seen from mass demonstra-tions that turn into anarchic move-ments, the destruction of severalplaces of entertainment, provoca-tions that, in the end, create pro-longed communal conflict, bomb ex-plosions in various places such as inthe Kuta Beach, Bali, on 12th Octo-ber 2002.

In an effort to assist Polri in over-coming these threats, the TNI imple-ments MOOTW when required. If thethreat spectrum increases to the levelof a threat to national security, cre-ated by radical actions, the govern-ment needs to take more effectivesteps.

The presence of militia createsuneasiness in the public, particularly,when they have military style equip-

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ment and accessories and especiallyif they have sharp weapons or fire-arms. The use of armed force andmilitary power to achieve nationalsecurity is the sole authority of theTNI. The presence of the militia withattributes and accessories that looklike a military will disrupt the na-tional order, especially security andmaintenance of public order whichis the responsibility of Polri and theTNI. In pursuit of broader securityinterests, then a rule of law needs tobe promoted which prohibits publicorganizations from having securityorganizations or forming militias.

• Overcoming Communal ConflictsThe heterogeneity of the Indone-

sian people that covers tribes, reli-gions, races and groups (ethnic-reli-gious or SARA) im-plies a vulnerabilityand the chance ofcommunal conflicts.Experience provesthat SARA triggerscommunal conflicts.The events that oc-curred in CentralSulawesi (Poso),Maluku, andKalimantan (Sampit,Sambas and SangauLedo) are the resultsof provocations from certain partiesthat then developed into widespreadconflicts. A small dispute amongmembers of the community, initiatedby a socio-economic case, developedinto an ethnic-religious dispute and

then into violent conflict. These con-flicts cause waves of refugees in largenumbers, deaths, material damageand great damage to the environmentand infrastructure. The conflict haslasted for a relatively long period oftime, crippling the structures of lo-cal community and disrupting na-tional stability.

The government has made an ef-fort to overcome those conflicts byuniting all capabilities of the Nations.Although the efforts have subduedthe situation, however there still fur-ther needs before a complete solu-tion is found. The involvement of theTNI's force in overcoming these con-flicts is the implementation frame ofthe MOOTW tasks.

• Overcoming Social DisturbanceSocial disturbance is explained in

this section as various public distur-bances which then develop into an-archy and destruction, thus causingdisruption of the government func-

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tion and community, and education,health services and trades. Should theTNI need to be involved in this area,this will be carried out in accordancewith the mechanism and applicablerules and can be categorized as as-sistance to the Civil Government orassistance to the Polri.

\i • Countering Piracy and Hijacking atSea

One tangible threat encoun-tered by Indonesia is piracy andhijacking at sea. In the past dec-ade there has been a significantincrease in these crimes which dis-rupts the security and the law inthe waters of Indonesia. The im-pact is not only felt by Indonesia,but by other countries using thewaters of Indonesia.

Ensuring security and uphold-ing the law at sea is one of themain tasks of the TNI, in this case,the Indonesian Navy. However,various functional governmentagencies also have authority insecurity at sea, such as Polri, De-partment of the Seas and Fishery,Department of Justice and HumanRights and other marine securityelements. TNI's cooperation withthese institutions is very impor-tant in overcoming crimes such aspiracy and hijacking at sea. In ad-dition to the government institu-tions, the involvement of all lay-ers of the society, in accordancewith their own capabilities andfunctions, will also support a un-

ion of effort to narrow the move-ment of the criminals.

So far the TNI has made an effortto overcome pirates and hijackers;however it has not been able toovercome the cases completely.These crimes are oftentransnational, and involves the in-terest of other countries, which ne-cessitates cooperation among thecountries of this region and outsideSouth East Asia. Considering the in-terests of Indonesia, cooperationswith Singapore, Malaysia and Japanand other countries has been car-ried out and need to be continu-ously developed in the future.

v/- Overcoming Illegal ImmigrationIllegal immigrants have abused

Indonesia's strategic position, be-tween two continents and twooceans, by making Indonesia a tran-sit region for the country of desti-nation. The illegal activities are wellorganized by an international net-work, either in the originating coun-tries or in the countries of destina-tion. The waves of illegal immi-grants have risen sharply as severalcountries in the Central Asia, Mid-dle East and other countries in Af-rica are overwhelmed by conflicts.Indonesia does not permit its regionand its citizens to be involved in il-legal immigrant activities. There isa need to overcome illegal immi-grants by having cooperation andunderstanding from the related gov-ernments of the countries. To wage

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war against illegal activities, TNI hasincreased its patrol intensity andobservations.

• Overcoming Illegal Fishing and SeaPollution

Illegal fishing in the waters of In-donesia by foreign fishermen has in-creased significantly. Besides illegalfishing, sea pollution, as a result ofwaste disposal that occurs in the wa-ters of Indonesia, has caused damagesin marine ecosystem. This illegal ac-tivity is made possible by the expan-siveness of the sea of Indonesia;meanwhile the TNI's equipment isinadequate.

To overcome this lawlessness atsea, the capability of defence in thisarea must be increased. Thefulfillment of the TNI's requirementsfor high-speed patrol boats, observa-tion technology using radios and sat-ellites, will be carried out in stages.The lack of the equipment recentlyhas caused illegal activities to in-crease, such as poor licensing, poorobservation, and lack of regard forthe law, examination, and trial. To thefuture, such weaknesses need to beaddressed. Therefore, the improve-

ment of cooperation between TNI andrelated government agencies in themaintenance of security at sea willbe increased.

• Overcoming Illegal Logging andSmuggling

As in the case of illegal fishing, theillegal clearing of forest and log smug-gling through border regions is quitewidespread. The Indonesia's limitedability to conduct observation of landand sea borders has increased theopportunity for various smugglingactivities. This does not only involvelog and forest product smuggling, butalso smuggling of other goods suchas electronics, machines and evenlight firearms, ammunition and ex-plosives. These various criminal actsare, directly or indirectly, a threat tothe security of Indonesia. The smug-glers have a professional organizationas well as a network of transnationalcontacts and it is possible they havea relationship with terrorist and sepa-ratist groups.

To cut a chain of the smuggling ac-tivities, the observation activities andthe security of the borders will be in-creased and will gain the attention

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of defence sector. Henceforth, borderdefence cooperation such as GBC andJBC with Malaysia, the Philippinesand Papua New Guinea, includingoperational cooperation between el-ements will be continuously in-creased.

Assisting Civil Government (Local Gov-

ernment)

The civil government here is thegovernment whose leader is electedby the people, for example as Gover-nor in his province, Regent in his re-gency and Mayor within his munici-pality.

Assisting the civil government inthis context is tohelp the Gover-nor, the Regentand the Major inovercoming diffi-culties that areencoun te r ed .The assistance tothe civil govern-ment is the obli-gation of the TNI to establish nationalstability to allow the progress of theimplementation of the national de-velopment. The assistance can bemade in two ways, i.e. at the requestof the local government (in this case,Governor, Regent, Major) to the lo-cal military command or a coordi-nated TNI program.

If the local government (Governor,Regent and Major), in carrying outthe governmental function, encoun-

ters difficulties and needs military as-sistance, then they can make a re-quest to the regional military com-mander.

In accordance with the Govern-ment Regulation No. 16 of 1960, inthe case that local government re-quests military assistance, then thelocal government lodges a request ofassistance to the local military com-mander. Henceforth, the local mili-tary commander will appoint an ele-ment of the TNI to provide assistancein accordance with what is needed.In the case that the local militarycommander feels reluctant, then hecan lodge an objection to the Presi-

dent, in this case,h ie ra rch ica l lythrough the Min-ister of Defence.

The TNI's as-sistance to the lo-cal governmentcan also be car-ried out on the

basis of an assessment of the TNI'sregional elements that the presenceof a specific situation needs urgenthandling. For example, natural dis-aster, terrorism, disturbances, which,if not controlled will result in victims,killings, violation of the humanrights, destruction and lootings.

The TNI's assistance to the civilgovernment can be given in variousforms such as:

• Carrying out the task of police

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assistance to maintain security andpublic order, such as overcoming se-curity disruption as a result of dis-turbance and commotion, terror,communal conflicts, ethnic conflictsand other conflicts that disrupt se-curity and stability.

• Carrying out the task of humani-tarian assistance to overcome theimpact of the natural disaster thatcauses victims in the population andinfrastructure damage in the vicin-ity of the natural disaster area.

• Carrying out the task of humani-tarian assistance to overcome anemergency condition such as a waveof refugees resulting from distur-bances and commotion, communalconflict, natural disaster or other rea-sons.

• Carrying out the task of humani-tarian assistance to overcome diffi-culties in themeans oftransport, forexample, onreligious holi-days, strikes bytransportationworkers, or thehandling ofproblemat icI n d o n e s i a nWorkers .

The assistance to the civil govern-ment has been carried out by the TNIfor a long time. The assistance is pro-grammed and is located in an activ-ity called "Bhakti TNI" or the Serviceof the TNI, which was commenced in

1980, and it has continued to thepresent time. The Service of the TNIis carried out in combination, or in-dividually by each element, amongothers: The "TNI Goes Into Villages"Operation as a combination, "SuryaBhaskara Jaya" Operation by theNavy, "Pelangi Nusantara" Operationby the Air force, "Bhakti Imbangan"Operation that is carried out with theArmy, and service activities in a lim-ited scale in accordance with the situ-ation and need.

The TNI Service Operation does notonly involve the TNI, but it is a mu-tual activity with other governmentagencies. Since the planning stage, ithas involved Regional Government aswell as related government agenciesin arranging their objectives, activi-ties and implementation mechanism.

The forms ofactivities thatare carriedout includenon-physicalas well asphysical ac-tivities. Thenon-physicalactivity hasthe aim ofstrengthen-

ing the values of nationalism.Whereas the physical activity the aimof helping overcome difficulties en-countered by the public by provid-ing infrastructure, among others:

« Helping to build and improvepublic facilities, such as: roads,

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f

bridges, educational and religiousfacilities, health supporting infra-structure, irrigation, markets, housesand others.

• Providing health service assist-ance and medicine for the poor andlogistic assistance especially the NineEssential Materials. This activity isprioritized for isolated areas in allregions of Indonesia that are difficultto be reached by public transport.

• Assisting the government in im-plementing the reforestation of for-ests that have been cleared.

• Assisting the government pro-gram in the educational field, suchas carrying out teaching for the illit-erate people, so that they will be ableto read and write, in the interior re-gions.

The TNI Service Activity that hasbeen carried out since 1980 has cre-ated a number of physical as well asnon-physical constructions. Up to2002, the physical development re-sult that has been obtained throughthe Service of the TNI, in a combina-tion, among others, is:

• Roads, total length: 25,795 kms(opening new roads, asphalting and

road widening).• Schools numbering 762 schools

(new buildings and rehabilitation)• Religious buildings numbering

4,493 (consisting of mosques,churches and temples, either newbuildings or rehabilitation)

• Bridges: 5,301 (new bridges andrehabilitation)

• Irrigation: 5,301 kms• Rice field making: 563 hectares• Means of drinking water such as

wells/pump installation: 61,318• Public Health Center Buildings:

936 buildings (new buildings andrehabilitation)

• Family containers and public toi-lets: 5,235

• Means of Bathing, Washing andToileting: 10,927

The data provided above is part ofthe results of the TNI Service that iscarried out in combination of all ele-ments in the " TNI Goes Into Villages"Operation. In addition to thoseshown, there are other physical con-structions, especially the physicalconstruction that is resulted in theTNI Service activity in combination,as well as those carried out independ-ently by each element.

From the evaluation results andthe feedback from the regional gov-ernment and the public that havebeen given the service, they state thatthe Service of the TNI is very posi-tive and is proper to be continued.Thereby, the TNI Service activity andother forms of assistance to the re-

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gional government will still be car-ried out in accordance with the need.

Territorial Development for DefencePurpose

In the context of the implementa-tion of Defence, territory includes theregion of the country, population,sources of natural and man-madewealth, other means and infrastruc-ture ass well as the social condition ofthe people. Territory is a container,means and condition of struggle forthe implementation of Defence func-tion. The implementation of defencedepends very much on the prepared-ness and the supporting effort of theterritory. To reach the readiness andthe supporting effort, the territoryneeds to be built and managed for theinterest of welfare as well as the in-terest of defence. In line with the En-tire Defence System such as beingmentioned in The Act No. 3 of 2002,then the TNI as the Main Componentof Defence is required to comprehendthoroughly and participate in devel-oping the territorial conditions thatsupports the efforts of defence.

The territorial organization of theTNI's is currently still relevant and iscontinuously perfected in accordancewith the environmental developmentand the task demanded by Defencerequirement.

Protect Vital ObjectsVital Objects that are meant here

are places, means and infrastructureof production, or important buildings

that have a strategic value, eithernational or international. The vitalobjects are vulnerable to sabotage, anexplosion, or other destructive ac-tions. Based on that, securing vitalobjects is very important, thus it isstressed separately in the Govern-ment Regulation Substituting The ActNo. 1 of 2002 regarding the Eradica-tion of Terrorism Criminal Act thathas been approved by the House ofRepresentative to become a law. Withthe presence of a non-traditionalthreat such as terrorism and riots,then steps for securing vital objectsare needed. So far the task has beencarried out and if it is still relevantwill be carried out by TNI.

Defence CooperationInternational Cooperation in defence

field is an integral part of the Indone-sia's overseas policy as one of thebridges to build mutual trust with othernations. The active involvement of In-donesia in ensuring stability and worldpeace has been shown by sending peacekeeping troops to a number of coun-tries in the world that are overwhelmedby conflicts. The involvement of the TNIin the United Nations missions startedin 1957 by sending the Garuda Contin-gent I (KONGA-I) to Egypt with 559troops. From that time, the TNI has ac-tively been involved in internationaltasks under the flag of the United Na-tions, by carrying out police observa-tion tasks, truce, demobilization anddisarmament, security protection andsafety as well as humanitarian assist-ance. For the period of 46 years carry-

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ing out international tasks, the TNI hassent 95 Garuda contingents and Mili-tary Observers (or a total of 15,838 per-sonnel) to 18 countries in three conti-nents, i.e. Asia, Europe and Africa.

Currently Indonesia is sendingTNI's military personnel tostrengthen the United Nations con-tingents in 5 countries, i.e. Georgia,Sierra Leone, Congo, Kuwait andPrevlaka. The involvement of the TNItroops in the future will continue, inaccordance with the request of theUnited Nations and the government'spolitical decision.

In an effort to take part in main-taining regional stability, defence co-operation will be prioritized on bilat-

eral cooperation with countries inSouth East Asia, and countries in theSouth West Pacific sub-regions. ASEAN(Association of South East AsianNations) and the ARF (ASEAN RegionalForum) defence cooperation forumand the South West Pacific Dialog Fo-rum is a cooperative area amongmember countries that it is important

to be developed in the future.Through the forums, regional caseswill be settled by emphasizing thespirit of collectiveness, a balance ofinterest that is built based on the prin-ciple of equal rights, mutual respectand non-intervention. Bilateral coop-eration in defence field is directedtowards building a feeling of mutualtrust and to resolve defence cases en-countered together. Urgent securitycases, to be jointly handled, are toovercome transnational crimes andother border defence issues.

The remote border regions areoften abused by certain parties as agate of illegal activities, such aspiracy, hijacking, smuggling, illegalfishing, illegal logging, shifting bor-

der poles, and illegal bordercrossing.

The threats above oftenoccur in the vicinity of thesea channel of the Indone-sian archipelago and causesshipping disruption in theregion. As a result, it is notonly felt by Indonesia, butalso by other countries thattaking advantage of the sea

channels of the Indonesian archi-pelago.

SingaporeDefence cooperation between In-

donesia and Singapore has long takenplace through the formation of thecooperation committee body of thetwo countries. Defence cooperation

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with Singapore has developed withjoint training between elements, suchas between the Army (SAFKAR-INDOPURA), between the Navy (EA-GLE-INDOPURA) and between Airforce (ELANG-INDOPURA) being con-ducted on a routine basis.

In addition to training, cooperationwith Singapore is also carried outthrough an agreement on MilitaryTraining Area (MTA) which can beused by the two countries. To per-fect the process and procedure of theuse of MTA of Rl-Singapore, in thefuture an evaluation of the agreementis needed.

In encountering transnationalcrimes issues such as terrorism,piracies and hijacks, cooperation withSingapore is important. Thereby, itneeds to be improved in the years tocome.

MalaysiaCooperation in defence field with

Malaysia was initiated through a se-curity arrangement in 1972, whichlater formed the Border Committee.The Border Committee is useful forhandling defence issues in the bor-der areas. Defence issues, among oth-ers, are piracy, hijacking and smug-gling, illegal logging, border polesshifting, and border crossing cases.

Elements of the TNI are positionedin the border area, in cooperationwith Malaysia, in an effort to resolveand overcome issues of border secu-

rity. The scope of the region that hasto be secured and natural conditionswhich are very tough, make it quitedifficult for security officials. Cur-rently elements of the TNI that arepositioned in the border areas arestill in small task units. In the future,the force and capability of the TNIwill be improved in stages in accord-ance with the need and situation.Integrated cooperation with elementsfrom related government agencies incarrying out security in the borderareas is very important and will beincreased.

So far cooperation in the borderregion has taken place through amechanism under the commitment ofthe GBC and JIMC forum. It is expectedthat this forum will remain an effec-tive place to resolve border cases.

Defence cooperation in the formof military training such as KEKARMALINDO, MALINDOJAYA, ELANGMALINDO, AMANMALINDO andDARSASA are very effective in im-proving defence of the two countries.Henceforth, the cooperation will alsobe increased in an effort to overcomeurgent defence matters such as ter-rorism, piracy, hijackings at sea,smuggling and other transnationalcrimes.

PhilippinesIndonesia enjoys long, strong, es-

tablished and good relations with thePhilippines especially by the fact ofIndonesia's involvement in sending

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nmilitary personnel as internationalobservers on the Moro case.

Up to now there has not been anagreement on the marine border ofthe two countries. The cooperationbetween the Republic of Indonesiaand the Philippines in the border is-sue has been tied in through the JBCforum, within an agenda that is rou-tinely carried out. In addition to JBC,there is a JCBC (Joint Commission forBilateral Cooperation) forum that dis-cusses cases that are connected withissues of joint defence. Among oth-ers, traditional border crossing,smuggling, piracies and hijackign inthe maritime border and other cross-state crimes.

In countering the terrorist issueand other transnational crimes, de-fence cooperation with the Philip-pines is important should be devel-oped in a more concrete form.

ThailandRelations and defence coopera-

tion with Thailand are long, estab-lished and good. With Thailand,there is a similarity of view, espe-cially in responding to non-tradi-tional defence issues in the SouthEast Asia regions. So far Thailandhas significantly helped Indonesiain overcoming transnational crimi-nals who try to smuggle firearmsto assist the Free Aceh Movement.Specifically, in handing issues of in-ternational terrorism and othertransnational crimes, defence coop-

eration with Thailand is importantand should be developed in a moreoperational form in future.

Other Members of ASEANInternational cooperation in de-

fence field with other members ofASEAN is of no less importance. Co-operation has so far taken place ina bilateral mechanism and in futureit is important to continue to cre-ate defence stability in the SouthEast Asia region through ASEANlinks.

Papua New Guinea (PNG)PNG is a neighboring country in

the east with a long land borderwith Indonesia. Bilateral relationswith PNG have been quite good. Thetwo countries have long agreedland and maritime borders. De-fence issue comes from 0PM (FreePapua Organization) a separatistgroup that is abusing the PNG re-gion. Frequently members of theOPM enter PNG to avoid being pur-sued by Indonesia's military force.In addition, the inhabitants wholive in the vicinity of the border-line often conduct traditional crossborder activities.

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In handling these defence issues,cooperation between the two coun-tries is needed. The place for the In-donesia and PNG cooperation is theJBC (Joint Border Committee) whichis still considered quite effective.Various joint agenda are routinelycarried out to prevent and handlecases that arise. There is a continu-ing requirement for the JBC.

Timor LesteIn the middle of the Indonesia's

region of West Timor is situatedthe Oekusi enclave, which is a

unique and requires specific han-dling. The human and materialtraffic from Oekusi through Indo-nesian territory needs to be regu-lated in such a way that it poseslittle or no security threat. Rela-

tions with Timor Leste are compli-cate by sentiment over the inde-pendence of Timor Leste.

On the longer land borders prob-lems such as illegal trade and smug-gling arise, as well as criminal dis-turbance and traditional bordercrossing. Militia issues come to thesurface and have the potential to dis-rupt relations between the two coun-tries. There are still a number ofTimor Leste refugees in the WestTimor region who also significantlyinfluence the settlement of defenceissues in the border area. The de-ployment of the TNI in the borderregion is expected to be able to main-tain defence and to be a continuingrequirement.

Bilateral discussion with TimorLeste is being carried out to decidethe regional borders between the twocountries.

AustraliaAustralia is a neighboring

country bordering with Indonesia,outside the South East Asia region.Defence cooperation between In-donesia and Australia is longstanding; however it has had upsand downs as the result of the up-and-down relations between thetwo countries. Defence coopera-tion between the two countrieswas at its lowest point in 1999 inconnection with the position ofAustralia in settling the TimorLeste case.

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In cooperation in the defence fieldwith Australia, Indonesia still refersto the principles of CBM that empha-size the spirit of collectiveness andinterest balance and is built accord-ing to equality of rights, mutual re-spect, and not involvement in respec-tive internal affairs.

Future cooperation with Australiawill be improved to overcometransnational crime issues such asterrorism and illegal immigrants, in-cluding the treatment of traditionalfishing issues.

ChinaThe normalization of diplomatic

relations between Indonesia andChina has brought progress in im-proving cooperation in various fields,including the defence field. China canbe an alternative source of procure-ment for TNI equipment. Defencecooperation relation is currently atan early stage and it is important thatthis is continued.

United StatesDefence Cooperation with the

United States has taken place since1950. Up to now the existing coop-eration is through IMET (Interna-tional Military Education and Train-ing) or E-IMET (Expanded IMET). Andso is cooperation in the form of mili-tary training.

In 1999 the United States imposeda defence cooperation restriction,where IMET was frozen and the pro-

curement of military equipment wasrestricted to non-lethal weapons mili-tary equipment.

Outside the situation describedabove, defence cooperation betweenIndonesia and the United States istaking place in a limited scale. Thecooperation, among others, isthrough joint maritime operationtraining. Bilateral relations in thedefence field with the United Statesare important for both countries inovercoming global and regional de-fence issues.

Efforts to restore relations havebeen made. In September 2001, aweek after the 11th September 2001event, President Megawati visited theUnited States, In a Joint Statementwith President Bush it was agreed thata security dialog should be carriedout between the two Departments ofDefence. The first security dialog wascarried out in Jakarta in April 2002and henceforth it will be carried outannually.

On 13th May 2002 the Ministerof Defence of the Republic of In-donesia, H. Matori Abdul Djalil vis-ited the United States, meetingwith Minister of Defence of theUnited States Donald Rumsfeld andseveral members of the Congressand Senate. The visit was quitepositive and has yielded progressin several areas, among others, there-opening of the IMET program asof 2003.

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United KingdomDefence cooperation with the

United Kingdom is long established.In the past the cooperation greatlyinvolved a number of purchases ofprimary equipment for TNI. Cur-rently and in the years to come, de-fence cooperation will be based onstrategic discussions on the defencesector through information exchangeand comparative study.

Other (EU) European Union CountriesThe cooperation relation in the

defence field between Indonesia andmember countries of EU Europe in-cludes education and purchase ofmilitary equipment by Indonesia.Currently Indonesia is studying vari-ous possibilities to improve the de-fence field with several membercountries of Uni Europe.

RussiaUp to now there has not been a

concrete relationship in the defencefield, and no formalmilitary links. Exist-ing cooperation islimited to the pro-curement of severaltypes of arms. It ishoped that coopera-tion will continue toimprove and firmerlinks develop.

Development of DefenceForces

The strategic policy of using thedefence force and the strategic policy

of defence development cannot beseparated. The two policies are partof the same unit of policy within thestrategic policy context of Defence.Therefore defence force developmentmust be planned and executed fromthe earliest stage and be focused, in-tegrated, and continuous in onepolicy that is in line with the policyof using the defence force.

Study of the strategic contextreveals several real and potentialthreats to the state, and defenceforce development is of key im-portance. The need is urgentwhen the present state of person-nel and equipment is considered.Both quality and quantity havedeficiencies, whereas the task de-mand for the future is gettingheavier and more complex. Thesame applies to other defencecomponents, i.e. Reserve and Sup-porting Components, in which thepreparation and management are

below expecta-tions.

The policy formu-lation of the defenceforce development iscarried out, by con-sidering geographi-cal situation, demog-raphy, sources of

natural and man-made wealth, andsocial condition including the state'sfinance capability. Then, other mainconsideration in the policy formula-tion of the defence force develop-

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ment also includes the level of tech-nological skills, especially in the armssystem primary equipment field, realand potential threats encountered bythe state, as well as the strategic con-text development that covers aspectsof ideology, politics, economy andsocio-culture.

Defence force development is notaimed at increas-ing power, but atfilling the gap be-tween the realsituation in ac-cordance withthe Organizationand EquipmentTable (TOP)and the List ofPersonnel andEquipment Composition (DSPP).

Current Defence StrengthsMain Component• Personnel

At the moment the force of theTNI's personnel is around 346,000soldiers or 0.15% of the populationof Indonesia numbering 220 millionpeople. Of the number of the TNI,there are 265,000 soldiers of theArmy, 57,000 soldiers of the Navyand around 24,000 soldiers of the Airforce. The total force of the TNI hasnot met the total need according tothe TOP/DSPP.

The recruitment process that isheld periodically so far has not beenable to fully cover the decline in the

number of personnel who retire, dieor die on the battlefield or for otherreasons. The quality of personnel islimited by the educational budget.

The quality of the personnel is alsoaffected by the low level of soldier'swelfare, even if it is measured by theminimum need standard, on the av-erage it is still under the standard.

• Materials andMain Equipmentof the Arms Sys-tem

The conditionof material readi-ness and themain equipmentof the arms sys-tem from both

the quality side and quantity sidehave not met the need in accordancewith the TOP/DSPP. The existingAlutsista and materials are generallyvery old. So far the TNI continues tomake efforts to maintain existing ma-terial condition so that it can still beutilized, through good maintenanceand repair. However, the service lifeof several types of materials cannotpossibly be extended, thus it causingdeficiencies in the total force.

• SoftwareDefence reform has brought a

transformational consequence insoftware. This is a result of the changein the strategic context and the real-ity of the threats encountered, so theexisting software generally must be

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adjusted to the new situation devel-oping. With the legalization of TheAct No. 3 of 2002 concerning De-fence, substituting The Act No. 20 of1982 regarding Defence, substitutingThe Act No. 20 of 1982, then nearlyall software connected with defenceneeds to be revised.

Reserve and Supporting ComponentsThe Reserve Components that

have been formed are still a modelto be developed in the future andare still in the area of the land ele-ment force. The force is composedin parties of the Reserve Army thatare located in 8 Military RegionCommands with a total number of900 people. Besides the ReserveArmy, there are elements of univer-sity students and alumni of univer-sity students whohave received mili-tary basic trainingthat is arranged inthe university stu-dents regiment or-g a n i z a t i o n s(Menwa) andalumni of univer-sity students regi-ment organizations(Menwa Alumni).Up to the presenttime, the numberof Menwa and Menwa Alumninumber 25,000 and 62,000 respec-tively. In addition to that mentionedabove, in the Defence Reserves aremembers of the Veterans Associa-tion number 30,000.

The supporting component in-cludes all citizens, natural re-sources, man-made resources, na-tional means and infrastructurethat, directly or indirectly, can in-crease the force and the capabilityof the Main and Reserve Compo-nents. This is the national force thatcan be directed to support the En-tire Defence System. Currently theSupporting Component is a poten-tial force that needs further devel-opment in accordance with the na-tional development plan.

Direction and Objectives of DefenceForce's Development

The Main Component of defenceforce development is not directed tomaximize force, but it is directed toproduce the force and capability that

can overcome threats and distur-bance that are real and urgent.Whereas the objective is to fill the gapin human resources capacity, as wellas the main arms systems, and to fur-nish the software and supporting fa-

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ft,-

cilities, the vacuum will take an esti-mated one to two years to fill. Not tomention if it is confronted with theratio of the personnel separation, andthe high rate of material decrepitude.Thus, defence force development isnot aimed at adding new force, butrather at rectifying deficiencies. Ifthere is a new addition, it is only incertain sectors that have very highurgency, as a result of threat devel-opment and urgent strategic need.

Being faced with a limited budgetas well as the estimate that a foreigninvasion is relatively small, defenceforce development is not prioritizedto counter external threats. It is fo-cused on the requirements broughtabout by internal and inter-statecrime. As a result of lack of resourcesit is considered that TNI has the ca-pability only to carry out tasks tocounter very urgent threats. TheTNI's minimum force developmentneeded include:

• Perfection of the system, espe-cially in the software field, to carryout a transformation in accordancewith TNI's reformation commitmentand ability to meet challenges andthreats.

• Maintaining primary equipmentof the main arms system (alutsista)of the TNI in order to improve serv-iceability, sustaining or adding toservice life span.

• The replacement of the alutsistaand other equipment, that has dete-riorated and is useless.

• The development and person-

nel and professionalism in order toshrink the TOP/DSSPP gap.

• The buildup and maintenanceof educational, health facilities andother supporting means.

The direction of the Reserve andSupporting Components develop-ment will be focused on the nationaldevelopment planning mechanism inaccordance with the function of eachgovernment institution and thestate's finance capability. The exist-ing Reserve Component is in the formof an embryo of land element, theobjective of the future developmentwill be extended and it will cover el-ements of the sea and air.

Defence Force Development and Ar-rangement

Development and arrangement ofDefence force is directed to gain ef-fectiveness and flexibility for TNI asthe Defence Main Component. Thedevelopment and deployment is car-ried out in accordance with the basiccharacteristic of each element in im-plementing its role and duty, eithercombat or non-combat duty. Defenceforce development and deploymentare organized according to the real-ity of the challenge and threat en-countered, based on the state's geo-politics and geostrategy, and afterconsidering national supportingefforts.

Main ComponentThe defence main component

force development and deployment,

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the TNI, is directed to respond tothe need to fill the gap byprioritizing the quality organiza-tion, i.e. professional capability; andthe quantity organization in stages.The need to build capable soldiersis an urgent need so that the TNItruly functions as the a professionaltool. Efforts to fill the quantity gapwill be carried out in stages andcontinued to meet the need in ac-cordance with the TOP/DSPP, bothin personnel and material. Capabil-ity development is focused on four

capabilities of the TNI that are con-nected. Intelligence capability,combat capability to defend thecountry, the capability to carry outthe MOOTW as well as supportingcapability.

• Intelligence Capability Improve-ment

Improvement of defence intel-ligence capability is carried outthrough the reorganization of theintelligence organization so that itwill be more effective and capable

of providing accurate intelligenceinformation to support the defenceperformance task of the state. Theorganization of the intelligence or-ganization is an urgent task, con-sidering the quick transformationof the strategic context and therapidly increasing need for infor-mation. This reorganization coversthe organization, structure, per-sonnel, software and means and in-frastructure, as well as the budgetrequirement.

In the structure ofintelligence, the de-fence intelligence or-ganization is directedto the re-arrange-ment of the strategicintelligence organiza-tion and the intelli-gence elements. Thearrangement is car-ried out so that it canaccommodate eachapplicable change

without disrupting the overall work-ing system. In the future, the defenceintelligence organization will be pre-pared to support efforts to defend thestate against actual and urgentthreats in accordance with the esti-mation.

In the personnel field, the aim isto improve the quality of the intelli-gence personnel including the mas-tery of knowledge and technology,and raise the quantity to the requiredlevel. In the software area, it requires

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legal sets, stipulations and regulationsas well as the need to support the taskimplementation. In the means and in-frastructure field, it is directed tofulfill the need for the Sensory Per-ception and Detection System, and thecapability improvement of the Com-mand, Control, Communication, Com-puter, Intelligence, Surveillance andReconnaissance (C4ISR).

• Combat Capability ImprovementCombat capability improvement is

required to defend Indo-nesia from any threat,either external or inter-nal. To be able to createthis capability, supportunit or joint level train-ing, either in the elementlevel or joint element, isessential. The objectiveof the combat capabilityimprovement covers:

» Capability im-provement to prevent andprotect, to obstruct and de-stroy each threat.

» Capability improvementagainst a strategic sea and airattack and being enable toovercome external threats.

* Capability improvementagainst a strategic land attack.

* Capability improvement ofregional defence to countercontinuing resistance.

• Capability Improvement to Carryout the MOOTW

The TNI's force development is notspecially directed at the TNI's capa-bility to implement the MOOTW. TheTNI's Combat Capability is used tocountering each form of threat. Inspecific tasks, the TNI is trained andprepared selectively. The capabilitiesare:

» The capability of enforc e lawand security at sea, in the airand in border regions to pre-vent and overcome each formof inter-state crime, threats to

vital objects, and various otherforms of threats. To supportthe capability above, the im-provement of the force is fo-cused on the equipment suchas high-speed patrol boats andmeans of detection, either onland, at sea or in the air andwill be carried out in stages.The implementation is regu-lated according to the stipula-tion of national and interna-tional law as well as interna-tional customs.

» The capability to counter ter-

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rorist threat, either domestic orinternational in nature. To sup-port this requirement, the ca-pability of the existing anti ter-rorist units will be improved,both personnel and theirequipment.The capability to prevent andovercome threats from armedseparatists in order to ensurethe integrity of the Republic ofIndonesiaThe capability to overcomebrutal and anarchic actions,due to riots or unrest; and to

and to overcome the impactthat has been created.

» The capability to carry outtasks of world peace at the re-gional and the internationallevel.

» The capability to carry outother tasks in the framework ofthe MOOTW.

• Support Capability ImprovementSupport capability improve-

ment is directed to maintain thecontinuity of defence capability,either in a peaceful situation or in

carry out other duties to assistthe tasks of the police.The capability to reduce theimpact of natural disasters,Search And Rescue (SAR).The capability to prevent andresolve communal conflicts

an emergency situation. It is car-ried out by arranging a rationalbudget, in order to obtain ap-proval from the House of Repre-sentative (DPR) so that defence getssufficient budget support. The sup-port capability improvement is di-

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reeled towards:» Development of the integrated

surveillance and early-warningsystem to detect transnationalcrimes and illegal activities inthe border regions, on the landand at sea, as well as in othervulnerable areas.

» Development of base logisticsupport and, in stages, prepa-ration for regional logistic ca-pability, in the interest of de-fence implementation inde-pendently and continuously.

» Development of C4ISR to meetthe need for data and informa-tion for defence implementa-tion.

» Development of educationaland training institutions ineach force element to form anddevelop qualified soldiers.

» Software organization to ad-just to the needs and devel-opment as they occur. Arrang-ing and completing legal in-struments such as laws, per-manent regulations, perma-nent procedure, operationalprocedures and involvingregulations.

• Support improvement of thesoldiers' welfare, such as healthservices, housing, and salariesin accordance with the coun-try's capability.

Reserve Component

Reserve Component is a nationalresource that has been preparedthrough a mobilization in order to

expand and strengthen the mainforce component. The preparation ofthe Reserves Component in each Re-gional Command is carried out toensure the availability of additionalsub-support for the Main Component.Its implementation is carried out bythe Department of Defence and the

TNI in coordination with the RegionalGovernment and related governmen-tal functional institutions. It is ad-justed to the need and the availabil-ity of the support of the defencebudget. Urgent requirements inbuilding up the Reserve Componentinclude:

» The arrangement of legal pow-ers and laws regarding the Re-serve Component for thesmoothness of defence imple-mentation.

* Forming the Reserve Compo-nent and maintaining what isavailable in each RegionalCommand.

Its implementation is to be car-ried out at the earliest stage and isto continue in each region in ac-cordance with the state's financebudget.

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Supporting ComponentThe Supporting Component com-

prises the national resources that canbe utilized to improve the force andcapability of the Main Componentand Reserves Component. SupportingComponent preparation is intendedto ensure the readiness of the na-tional supporting force, for defence.

The Supporting Component is pre-pared by the government through:

« The national development inthe human resources field is di-rected to develop and maintainthe awareness of all citizens oftheir rights and obligations indefending the state as man-dated by the 1945 Constitu-tion. This is achieved throughthe education of the citizen-ship, military basic trainingthat must be carried outthrough educational institu-tions of the government or pri-vate agency, service as volun-tary or conscript TNI soldiers,and service in the profession.

« The national development inthe natural resources manage-ment area is carried out as abasis for the development ofenvironmental and continuousinsight. Besides being focusedon the welfare and security, itis also for ensuring the conti-nuity and preservation of theliving environment.

* The national development inthe man-made resources fieldis directed to build the inde-

pendence of the Indonesianpeople. To achieve independ-ence in the equipment field fordefence, the Department of De-fence plays a part in boostingthe growth of the domestic de-fence industry. This is done atthe earliest opportunity and incoordination with regional gov-ernment and in accordancewith available financial sup-port.

Technology and Defence IndustryThe cooperation of the Depart-

ment of Defence and the TNI withother institutions is an importantpart of the Defence Strategic Policy.In accordance with The Act No. 3 of2002, cooperation is carried out inthe framework of the technologicaleducation and defence industry thatare needed by the TNI and other de-fence components. This cooperationhas a strategic value as it can propelthe speed towards the national inde-pendence in the defence technology,including providing space for othersectors to be involved in the imple-mentation of defence.

Through cooperation, the Depart-ment of Defence and the TNI will tryto participate in propelling nationalindustry development in order to beable to produce its main products andto develop a capability to produceequipment required for defence.

One of the forms of cooperationthat is carried out is to synergize stra-

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tegic industry development througha partnership model of three actorsin Science and Technology, i.e. Indus-try, Tertiary Education and DefenceInstitutions. The target developedthrough the cooperation is:

• Cooperation in the fields of aero-space, shipping, civil technique,heavy industry, automotive, electron-ics, informatics, and other nationalindustry.

system.• Empowering the national indus-

try in an effort to create independ-ence, and to shrink dependence onother countries in the defence field.

• Cooperation to fulfill the needfor other defence equipment.

• Cooperation in the function ofthe Research and Development to bedeveloped in order to yield studieson concept of defence that is con-

• Carrying out improvement in thequality of the human resources in thefields of design and engineering, com-prising of expertise and developmentcapability and the construction ofmilitary cargo airplanes, special mis-sion airplanes, high-speed patrolboats, combat ships, military combatvehicles, arms system, communica-tion network system, command andcontrol center, as well as information

nected with the technology, manage-ment or human resources.

In the framework of managing na-tional resources for the interest of de-fence, cooperation with departmentsand other government agencies is im-portant. The cooperation is needed inorganizing and implementing the stra-tegic plan in accordance with respec-tive function and authority.

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Budget Support

^INDONESIA

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•da

Chapter SixBudget Support

Current Defence BudgetSupport

Orientation of national develop-ment still focuses on the economy.Meanwhile, development in thefield of defence receives less atten-tion as indicated by the small de-fence budget. This situation was ineffect since previous administra-tion will now.

So far, decision of the amount ofdefence budget is mainly based on thecapability of state finances and thepriority of development. If carefullyexamined, at present defence has aheavy load and responsibility, espe-cially with the increase in the poten-tial threat based on geographic fac-tors, national jurisdiction area,progress of strategic context, andstandard needs of defence capability.

For the last ten years, Indonesia'sdefence budget has averaged lessthan 1% of GDP. By comparison, thedefence budgets in other countries,especially in the South East Asian re-gion, are more than 1% of their re-spective GDP. Several countries evenallocate 3% to 5% of their GDP fordefence.

The limitations on Indonesia'sdefence budget are still felt because

the country's economy has not yetfully recovered. Nominally there isan increase, but due to deprecia-tion of the rupiah, especiallyagainst the US dollar, and the highinflation rate, the real value of thedefence budget decreases, whichlimits the scope for the develop-ment of defence capability.

Defence allocations show thatRoutine Budget (Salary, Goods ex-penditures, Maintenance expendi-tures, and Business travel) is largerthan the Development Budget (Sys-tem Development, Personnel Devel-opment, Facilities Development, andMaterial Development). This datadepicts that defence budget is usedmore to fund routine activitiesrather than to fund the advancementof the defence force and capability.The low development budget makesit difficult to arrange a comprehen-sive program designed to improvethe professional ability of the TNI inan integrated manner.

Taking budgetary limitationsinto account, budget priority will bedirected to finance developmentprograms in order to reach 'A mini-mum essential force'. This minimumforce is prepared to meet urgenttasks.

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(in billion Rupiah)

NO

I

II

III

IV

V

Description

Developmentbudget

Routine budget

Amount

GDP

APBN

%GDP

% APBN

Budget Year1999/2000

1.756,76

8.307,43

10.064,19

1.134.600,00

231.900,00

0,89

4,34

2000

1.945,31

6.594,42

8.399,73

988.300,00

221.000,00

0,85

3,80

2001

2.520,85

9.150,97

11.671,82

1.476.200,00

354.500,00

0,60

3,29

2002

2.880,11

9.874,83

12.754,94

1.685.400,00

344.008,80

0,76

3,71

Average/Year

2.275,76

8.481,91

10.722,67

1.321.125,00

287.852,20

0,78

3,79

Tabel of comparison of Defence Budget against the GDP and the State Budget in 1999 - 2002 budget year.

Future ProjectionsThe National situation will in fu-

ture be affected by the dynamics offast and disorderly change in circumstances. In the economic field, pros-pects for national economic growthare limited for several years to come.As a result Indonesia's ability to useeconomic capacity for developingdefence forces is very limited. Thiswill make it difficult for the govern-ment to meet urgent security threatsand disturbances. This difficulty willbe overcome if there is a politicalagreement to increase allocation ofdefence budget.

Determining the allocation offunds for defence should not bebased simply on the national eco-nomic situation, but also on the needfor defence capability. Fulfillment ofthis will improve defence capabilitywhich will guarantee the ease of na-

tional development. National devel-opment will not run well if not sup-ported by stability and national se-curity.

In the past, even though defencebudget was small, stability and na-tional security was relatively wellmaintained. This is understandabledue to the political order whichgreatly differs from the present con-dition. Therefore, at present and inthe future, a more rational increaseof defence budget, in the more demo-cratic political order is very muchneeded.

Projections of the defence budgetfor the next two to three years areexpected to reach around 2% of GDP,and increase gradually in the nextfive years. In ten to fifteen years arational defence budget is projectedto be 3.86% of the GDP.

82 Defending The Country Entering the 21 Century