About This Report
Too High a Price
June 21, 2006

Too High a Price

The Human Rights Cost of the Indonesian Military's Economic Activities

Summary
I. Military Finance in Indonesia
Military Self-Finance and Human Rights
A Brief History of Military Economic Activity
Military Business Activity and the Law..
II. An Anatomy of Military Economic Activity
Military-Owned Businesses
Military Collaboration with Private Businesses
Military Involvement in Criminal Activity
Military Corruption
III. Obstacles to Reform...
Unaccountable Military Finances
Three Myths about Indonesian Military Self-Finance100
Flawed 2004 Reform Effort110
IV. Recommendations122
Ensure Accountability122
Ban All Military Economic Activity and Enforce the Ban123
Divest the Military of Existing Military Business Interests124
Commit to Full Transparency127
Address Financing Concerns128
Acknowledgments135

Index of Tables

Table 1: TNI Inventory of Military Businesses . 27

Table 2: Businesses Owned by Military Cooperatives . 37

Table 3: Official Military Budgets and Expenditures, 2002-2005 . 85

Table 4: Trends in Indonesia's Military Spending, 1995-2005 . 86