The Businesses of the Indonesian Armed Forces
Abstract
Since the end of more than three decades of autocratic rule under President Suharto in May 1998, Indonesia has undergone significant changes in the political, social, and economic spheres. Current national reform efforts aimed at reducing the political influence of the military needs to address the much-neglected issue of the military's extensive business interests. Divestment of these business interests are critical in view of the negative impact of encouraging corruption throughout the ranks, reduced combat effectiveness, weakened civilian control and the disruption to the real economy. However, the current economic downturn, internal security problems, competing priorities for scarce resources, and the lack of resolve on the part of the government and the military leadership pose significant challenges. A possible approach to divest the military's businesses is to deal with two of the most pressing issues of tackling corruption and finding ways to compensate the military for lost income. In the long run, the divestment of the military's businesses through this approach is crucial not only for the success of the military's reforms, but also to the country's future.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 18, 2002
- Accession Number
- ADA404029
Entities
People
- Chia C. Hoong
Organizations
- Marine Corps University