Indonesian President Susilo Bambang Yudhoyono announced on 16 August a 2014 defence budget of IDR83.4 trillion (USD7.91 billion), a 9% increase over the previous year.
In his annual budget speech, Yudhoyono said the allocation, which is equal to about 0.9% of GDP, would be directed towards the modernisation of both the country's armed forces and Indonesia's defence industrial base.
"The goal is to accelerate the development of the minimum essential force [MEF] and the national defence industry," he said. "We will ensure that our weapons technologies are not lagging behind other countries, including our neighbours."
The MEF programme is a long-term project introduced by Yudhoyono in 2005 that aims to establish the scale and nature of military capabilities Indonesia should be able to deploy in response to a strategic threat.