JakartaPost-Mar 26
Experts warn that the revised Indonesian Military (TNI) Law passed on March 20 and the subsequent social unrest could lead to economic repercussions, including an adverse impact on investor confidence. Bhima Yudhistira, executive director of the Center of Economic and Law Studies (CELIOS), told the The Jakarta Post on Tuesday that the law revision meant businesses “or even farmers” might have to compete with the military for jobs, particularly on government projects. “Economically, placement of active TNI members in civilian positions could spark resource inefficiency. That is due to the skills gap in the military, given that it is different from civilian [occupations], particularly in strategic decision-making,” he said. Involving the military in government projects might result in a crowding out effect, Bhima said, as the TNI would be filling space that should be reserved for the private sector, especially micro, small and medium enterprises. “For example, this has happened in the free [nutritious] meal program, with a centralized kitchen and food estate [project] managed by the TNI,” he said. He added that expanding the military’s role gave the impression that the country was reverting to a centralized system rather than one based on innovation and healthy competition, which might cause investors to reconsider both portfolio and direct investments in Indonesia. The government and the House of Representatives passed the controversial TNI Law revision last Thursday, which many feared would undermine civilian supremacy and result in democratic backsliding. Critics have warned that the revised law ran the risk of regressing the country to the authoritarian New Order era of former president Soeharto, although the government has made reassurances that TNI officers would have to resign prior to assuming civilian posts. The one exception is appointments to the Attorney General’s Office, which raises the separate issue of military encroachment on the civilian justice system. Read more at:
