Indonesia: Reform of Military Business

Indonesia’s military has a longstanding practice of raising independent income outside the approved budget process. It earns funds from businesses it owns, services it provides for hire, and the protection rackets it operates. It is by now widely acknowledged that Indonesian military involvement in the economy is a harmful practice that undermines civilian control over the armed forces and fuels human rights abuses. The military’s economic involvement also contributes to crime and corruption, weakens the economy, and distorts the function of the military itself.