With a total defense budget of $8.8 billion in 2023, Indonesia presently ranks as the second-highest military spender after Singapore in Southeast Asia. Driven by ongoing defense modernization initiatives, the country’s defense expenditure is forecast to reach $9.7 billion by 2028, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Indonesia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2023-28, “Australia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-27′ reveals that the country’s cumulative defense spending is anticipated to touch $46.6 billion from 2024-28, out of which the acquisition budget share is estimated to be approximately 28.4%, amounting to $13.3 billion. The defense acquisition expenditure is expected to register a compound annual growth rate (CAGR) of 1.5% over 2024-28 and reach $2.7 billion by 2028.
Abhijit Apsingikar, Aerospace and Defense Analyst at GlobalData, comments: “Indonesia’s defense budget is majorly driven by the need to mitigate natural disasters and undertake military modernization initiatives. The country seeks to expand its defense posture and augment its indigenous defense manufacturing industrial complex through military modernization initiatives. Furthermore, increasing fundamentalism has aggravated the threat of terrorism, coupled with online radicalism, which has compelled Indonesia to invest heavily in cybersecurity and counter-terrorism apparatus.”
Provided by Abhijit Apsingikar, Aerospace & Defense Analyst at GlobalData