| Home > South-East Asia >> Indonesia | |
Military business threatens human rights - Respond to Human Rights Watch research
Kontras Statement - February 16, 2007
The Commission for Disappeared and Victims of Violence (Kontras) expresses regret toward the tardiness of Indonesian government to release President Decision on implementation of Law No. No.34/2004 on Military. This setback will weaken initiative to push military withdrawn from businesses, reform the budget process and hold military personnel accountable for crimes by 2009. That tardiness will threatens human rights.
Longstanding rules against military profit-seeking have not been enforced. The business practices of military enterprises have helped sustain the reputation of the Indonesian military as abusive, corrupt and largely above the law. Troops are breaking the law, violating human rights and hiding the money they make on the side. Military reform means getting soldiers out of business and prosecuting those who broke the law
Human Rights Watch report titled "Too High a Price: The Human Rights Cost of the Indonesian Military's Economic Activities, shows how human rights violation is high priced-cost that should be paid out of military business.
A series of military-owned businesses in East Kalimantan secured preferred access to forest concessions on land claimed by local indigenous communities. A coal-mining company in South Kalimantan brought in a military-run cooperative to provide security to help it deal with illegal miners in its concession area. Military authorities also run business in Binjai, North Sumatra and Aceh.
If Indonesian government delayed its plans to release President Decision, it will be more difficult to take over military business consequently getting soldiers out of business and prosecuting those who broke the law will take a long process. The military business has undermined civilian control, contributing to abuses of power by the armed forces and impeding reform.
According Kontras' records, there are five main areas where Armies broke the law. First, human rights violation needed to support military business, 2) human rights violation as support for the New Order's policy on economic growth; 3) human rights violation occurred in pro-independence conflict areas; 4) human rights violation as support for upholding the only one state's ideology and 5) human rights violation as means to control and to ban prodemocratic movement.
Kontras stated that HRW research has been successfully shattering Indonesian government's cause to keep its military business. It's not true that military official budget is sufficient to meet only a little of its needs. It's not true that military's independent business contributes to provide much more budget for military. It's not true that profit taken from military business benefits troops in whole levels.
First, government budget for military only suffices half of its needs. Ministry of Defense and Military Headquarter acknowledged that Indonesia's defense budget is low compared to its need. Recently they said that the budget is only covering 25-30% of their total expense, 70% of its budget is for overhead and salary of the troops. The rest 30% are spent for military facility and its maintenance. This condition encourages military to raise additional funds outside government accounts.
These funds are not transparently reported and, oversight of military finances is very weak. This brings to conclusion that military doesn't report properly on behalf of their business. Military received some additional budget from government in many occasions like general election, military operation and disaster quick respond. Military also gets additional funding from government subsidy and export credit/fiscal benefit. For instance, military gained export credit for its equipment wroth US$ 160 million in 2002, US$ 448 million in 2003 and US$ 449 million for 2004.
Military officers also don't mention about its additional funding received from companies that use the Indonesian military to provide security for their installations. Military aid and equipment grant from foreign country should be taken into account as source for military operation also.
Second, military business is considered to fulfill lack of military budget. It assumes that military business run with huge profit. But after the crisis, many military-own- companies went bankrupt due to the mismanagement. Their fundraising methods went beyond illegal activities such as organized smuggling and illegal levies. Military involvement in illegal business fuels more profit for their officers. Many of the military officers involved in such business bribed their boss/commanders for letting them do illegal business. Increasingly, military commanders also allied themselves with local businesspeople to generate funds to cover military expenditures. In some cases the military command itself would be granted a stake in a business venture managed by a private partner. That makes financial contribution of the business to military's budget is decreasing due to the profit-taking by military high officers. These funds are not transparently reported
Military also run security business and frequently these arrangements have been marked by allegations of corruption and abuse. Despite military accepted that high amount of payments.
Third, most of the military business aims to provide more money for low-level soldiers. Low level military are paid low comparing to their basic necessities. Basic salary for soldiers range from Rp650.000 (US$ 70) to Rp. 2 million (about US$ 220) for senior level. Soldiers could receive additional aid if only they help their commander to run a business. It's no wonder there is such adagium, the successful commander is the one who can provide prosperity to their unit.
This petty corruption are largely tolerated and encouraged to survive their life by finding alternative sources of subsistence, such as businesses and other economic activity.
Many important military business holdings have been established under the umbrella of tax-exempt foundations (yayasan). Most of the military foundations provide social services, such as housing and education, for the troops and their families. But soon military expanded into businesses ventures as a way to generate revenue, ostensibly to pay for their welfare activities. The beneficiary of this foundation is not public or military's poor family, instead their higher officers or retired general gains more profit out of this business. Some generals interfere the decision making in the foundation and corrupt money from the foundation.
Indonesia has paid a high price for allowing military businesses, with their far-reaching corrosive effects, to develop. Military business has allowed the weakening of its professionalism and enhancing the military violence.
HRW's research emphasized how military business is still high profile issue in Indonesia that should be dealt properly both by government and by military.
Jakarta, 16 February 2007
Badan Pekerja
Usman Hamid
Coordinator
The Commission for Dissapeared
and Victims of Violence (KontraS)
Jl. Borobudur No. 14 Menteng
Jakarta Pusat 10320 Indonesia
phone: 62-21-3926983
fax: 62-21-3926821
email: kontras_98@kontras.org
website: www.kontras.org
mailinglist: info_kontras@lists.riseup.net
See also: