Political Risk:
High
Score:
49/100
Defence and Security Policy and Policy Transparency
Q1
75/100
Is there formal provision for effective and independent legislative scrutiny of defence policy?
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Law No. 17/2014 grants the Indonesian parliament formal powers in three main areas, namely legislation, budget and oversight, in addition to other equally important…
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The DPR may have powers of legislative scrutiny as bestowed by the law, but this scrutiny is unlikely to be effective. Among persistent problems…
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It is rather difficult to find any evidence of executive influence over the House of Representatives (DPR) that is not anecdotal. Executive power over…
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Q2
79/100
Does the country have an identifiable and effective parliamentary defence and security committee (or similar such organisations) to exercise oversight?
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According to the Resolution of the House of Representatives of the Republic of Indonesia (DPR RI) Plenary Meeting of November 4, 2014, the DPR…
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As is the case for the other Commissions in the DPR RI, the mechanism for selecting and determining the members of Commission I does…
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In Indonesia’s law structure, the five-year state defence policy is governed by a Minister of Defence Regulation. For the 2014-2019 period, the Regulation of…
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In each session year, which begins and ends in August, there are four to five session periods [1]. At the beginning of each session,…
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Every issue related to defence policy essentially concerns the implementation of a law, or its derivative rules, and the use of the budget in…
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Commission I plays a very important role in the preparation cycle of the State Budget, including the defence budget. The intensity of the collaboration…
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Q3
63/100
Is the country’s national defence policy or national security strategy debated and publicly available?
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According to Law No. 3/2002 concerning National Defence, the President established a General Policy on National Defence as a reference for planning, organising and…
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At least in the last two decades since democratisation, public discussions about the national defence policy system have covered quite a wide range of…
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In carrying out its duties in the fields of legislation, budgeting and supervision, the DPR RI’s Commission I can hold a Public Hearing Meeting…
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Law No. 14/2008 concerning Openness of Public Information stipulates that every public agency, in this case the Ministry of Defence, must grant requests for…
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Q4
17/100
Do defence and security institutions have a policy, or evidence, of openness towards civil society organisations (CSOs) when dealing with issues of corruption?
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There are not any known policies or any other evidence, such as consultation or information sharing, indicating the government’s openness towards CSOs on corruption…
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CSOs are governed by Law No. 17/2013 on Community Organisations, which is considered to be authoritarian and anti-democratic because it narrowly interprets CSOs and…
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Government Regulation No. 45/2017 governs community participation in the implementation of regional government policies, such as the stages of planning, budgeting, implementation and supervision.…
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Q5
63/100
Has the country signed up to the following international anti-corruption instruments: UNCAC and the OECD Convention?
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Indonesia is currently ranked 24 in the Stockholm International Peace Research Institute’s (SIPRI) database of 100 largest arms-exporting countries, with a total export value…
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Indonesia received 32 recommendations from two rounds of UNCAC assessments, but so far, only eight recommendations have been resolved [1]. In later reviews, Indonesia…
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Q6
63/100
Is there evidence of regular, active public debate on issues of defence? If yes, does the government participate in this debate?
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One interviewee stated that there have been public debates conducted by academics, journalists, opinion-formers and civil society organisations about defence issues, though they were…
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One interviewee stated that the government, in this case the Ministry of Defence and the TNI, did not involve academics and CSOs in matters…
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Q7
50/100
Does the country have an openly stated and effectively implemented anti-corruption policy for the defence sector?
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Indonesia’s anti-corruption policy was issued through the Anti-Corruption Law of 2002 (which was amended in 2015 and 2019) [1]. Accordingly, President Widodo issued Presidential…
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This indicator is marked ‘Not Applicable’, due to the fact that there is no anti-corruption policy that applies to the defence sector. Despite the…
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Q8
42/100
Are there independent, well-resourced, and effective institutions within defence and security tasked with building integrity and countering corruption?
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According to Minister of Defence Regulation No. 2/2017 concerning the Organisation and Work Procedure of the Ministry of Defence, the task of organising internal…
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Within the Ministry of Defence, the task of organising internal supervision is carried out by the Inspectorate General. The Inspector General, who leads the…
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In general, increasing the integrity and effectiveness of anti-corruption measures is still an issue within the Ministry of Defence and the TNI. The Ministry…
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Q9
NS/100
Does the public trust the institutions of defence and security to tackle the issue of bribery and corruption in their establishments?
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This indicator is not assigned a score in the GDI. No survey has been found that specifically measures public perception of the capacity of…
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Q10
25/100
Are there regular assessments of the areas of greatest corruption risk for ministry and armed forces personnel, and are the findings used as inputs to the anti-corruption policy?
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Ad hoc and partial assessments may have been conducted by the government. In 2017, for instance, the state’s Audit Board (BPK) scrutinised a list…
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This indicator is marked ‘Not Applicable’. There has been no specific assessment of corruption risk in the last 2-3 years and there is no…
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This indicator is scored ‘Not Applicable as there has been no specific assessment of corruption risk in the last 2-3 years. It is not…
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Defence Budgets
Q11
42/100
Does the country have a process for acquisition planning that involves clear oversight, and is it publicly available?
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The mechanism for arms procurement is regulated by Defence Minister Regulations (Permenhan) No. 17/2014 [1] and No. 46/2016 [2]. These regulations do not address…
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Procedural details of the procurement cycle of defence equipment are not open to the public, under the pretext of confidentiality. Strategic processes, such as…
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External oversight of the long-term acquisition plan is carried out by the House of Representatives (DPR) and CSOs. Due to limited access to government…
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Q12
88/100
Is the defence budget transparent, showing key items of expenditure? And it is provided to the legislature in a timely fashion?
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During the planning and preparation cycle of the State Budget, each ministry and agency, in this case the Ministry of Defence, prepares a Work…
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During the planning and preparation cycle of the State Budget, the government, in this case the Ministry of Defence, begins the process of preparing…
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Q13
75/100
Is there a legislative committee (or other appropriate body) responsible for defence budget scrutiny and analysis in an effective way?
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According to the laws and regulations, the government’s revenue and expenditure budget is discussed together with the DPR RI. The Ministry of Defence prepares…
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In terms of carrying out budget-related functions, the DPR RI, in this case Commission I, plays a very important role in preparing and supervising…
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Q14
67/100
Is the approved defence budget made publicly available? In practice, can citizens, civil society, and the media obtain detailed information on the defence budget?
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There are a number of regulations governing obligations and limitations for the Ministry of Defence, as a public body, with regard to providing information…
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Attached to the Presidential Regulation concerning the details of the state income and expenditure budget is the Central Government Expenditure Budget document. This document…
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In accordance with Law No. 14/2008 concerning Openness of Public Information, the Ministry of Defence, as a public agency, is required to make information…
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Q15
58/100
Are sources of defence income other than from central government allocation (from equipment sales or property disposal, for example) published and scrutinised?
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Law No. 34/2004 concerning the Indonesian National Defence Forces stipulates that the TNI is financed by the national defence budget derived from the State…
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The internal monitoring function within the Ministry of Defence is carried out by the Inspectorate General of the Ministry of Defence. The Ministry of…
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Public scrutiny of various aspects of defence policy, including the defence budget, has begun to increase, especially since the reforms of the late 1990s.…
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Q16
56/100
Is there an effective internal audit process for defence ministry expenditure (that is, for example, transparent, conducted by appropriately skilled individuals, and subject to parliamentary oversight)?
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According to Minister of Defence Regulation No. 7/2013 concerning Supervision and Inspection in the Ministry of Defence and the Indonesian National Defence Forces, internal…
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According to Minister of Defence Regulation No. 14/2019 concerning the Organisation and Work Procedure of the Ministry of Defence, the Inspectorate General of the…
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Law No. 15/2004 concerning the Audit of Management and Responsibility of State Finances regulates that, when carrying out audits of management and responsibilities of…
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Generally, internal audit unit recommendations are addressed by the Ministry of Defence. In 2017, for example, the Ministry of Defence Inspectorate General conducted an…
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Q17
81/100
Is there effective and transparent external auditing of military defence expenditure?
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According to Law No. 17/2003 concerning State Finance, Law No. 15/2004 concerning the Audit of Management and Responsibility of State Finances and Law No.…
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According to statutory regulations, the BPK is the only external state auditor [1]. Institutionally, the external and independent nature of the BPK is reflected…
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As part of its duties, the BPK conducts an examination of the Central Government Financial Report (Laporan Keuangan Pemerintah Pusat/LKPP), which is the responsibility…
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According to Law No. 15/2006 concerning the Audit Board of the Republic of Indonesia, the BPK submits the results of audits of the management…
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Nexus of Defence and National Assets
Q18
35/100
Is there evidence that the country’s defence institutions have controlling or financial interests in businesses associated with the country’s natural resource exploitation and, if so, are these interests publicly stated and subject to scrutiny?
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Law No. 34/2004 concerning the Indonesian National Defence Forces prohibits TNI soldiers from engaging in business activities [1]. In addition, the TNI law stipulates…
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Before the Reformation, military business activities were prevalent. The role of the TNI in business activities took various forms: ownership of business units through…
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The laws and regulations issued after the Reformation clearly prohibit the military from engaging in business activities, both as an institution and individually. However,…
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The alleged involvement of the TNI in the business activities of the natural resource extraction sector is not institutional. Law No. 34/2004 concerning the…
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Legally, the parliamentary oversight function for TNI business activities is carried out by the Commission in the DPR whose scope of duties includes tasks…
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Organised Crime
Q19
63/100
Is there evidence, for example through media investigations or prosecution reports, of a penetration of organised crime into the defence and security sector? If no, is there evidence that the government is alert and prepared for this risk?
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There is no evidence that leads to the conclusion that the Ministry of Defence and the TNI are being penetrated by organised crime. However,…
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The involvement of the TNI in the narcotics and drug trafficking network has been causing concern in the government and among the public. The…
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Q20
25/100
Is there policing to investigate corruption and organised crime within the defence services and is there evidence of the effectiveness of this policing?
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The function of policing defence services in general is regulated through Law No. 31/1997 concerning Military Court [1]. It stipulates that the military court…
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According to Presidential Regulation No. 10/2010 concerning the Organisational Structure of the Indonesian National Defence Forces and its amendments, the Military Police (POM) is…
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Efforts to eradicate corruption in defence agencies, especially the TNI, have so far not been effective. Efforts to eradicate corruption are often stalled because…
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Control of Intelligence Services
Q21
38/100
Are the policies, administration, and budgets of the intelligence services subject to effective and independent oversight?
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Oversight of intelligence is conducted by Commission I. The implementation of budget and oversight of intelligence is conducted in accordance with the annual cycle…
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There is no written information on how often Commission I and the Intelligence Supervisory Team conduct meetings with the Indonesian State Intelligence Agency (BIN)…
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Q22
25/100
Are senior positions within the intelligence services filled on the basis of objective selection criteria, and are appointees subject to investigation of their suitability and prior conduct?
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Law No. 17/2011 and Presidential Regulation No. 90/2012 concerning the State Intelligence Agency (Badan Intelijen Negara/BIN), which was amended by Presidential Regulation No. 73/2017,…
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According to Law No. 17/2011, the Head of BIN is appointed by the President after being considered by the DPR [1]. The President proposes…
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According to Law No. 17/2011 concerning State Intelligence, the Head of BIN is appointed and dismissed by the President after being considered by the…
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Export Controls
Q23
0/100
Does the government have a well-scrutinised process for arms export decisions that aligns with Articles 7.1.iv, 11.5, and 15.6 of the Arms Trade Treaty (ATT)?
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The Indonesian government has chosen to abstain from the ATT since its adoption in 2013. There are several parts of the ATT deemed to…
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Indonesia has neither signed nor ratified the ATT, therefore this indicator is marked ‘Not Applicable’ [1]. However, some of its domestic regulations do actually…
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Minister of Defence Regulation No. 6/2017 does not mention anything about parliamentary involvement in the process of arms exports [1]. One interviewee confirmed that…
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Lobbying in Defence
Indonesia does not have legislation that regulates lobbying in the defence sector. [1]
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This indicator is marked ‘Not Applicable’, as Indonesia does not have legislation that regulates lobbying. [1]
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This indicator is marked ‘Not Applicable’, as Indonesia does not have legislation that regulates lobbying. [1]
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This indicator is marked ‘Not Applicable’, as Indonesia does not have legislation that regulates lobbying. [1]
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