Article Per Year (5 Year)
p-Index From 2021 - 2026
0.23
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All Journal PPSDP International Journal of Education
Valentino Partogi Siagian
Universitas Pertahanan, West Java, Indonesia
Education Languange, Linguistic, Communication & Media Mathematics Social Sciences Other

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From Consumption To Investment: Defense Spending and Strategic Industrial Development In Indonesia Valentino Partogi Siagian; Suwito Suwito; Muliahadi Tumanggor
PPSDP International Journal of Education Vol. 5 No. 2 (2026): PPSDP International Journal of Education
Publisher : Perkumpulan Program Studi Doktor Pendidikan (PPSDP)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59175/pijed.v5i2.926

Abstract

Indonesia’s defense budget has increased substantially, yet spending remains dominated by routine operational and management needs rather than productive investment. This study analyzes the transformation of Indonesia’s defense spending into strategic investment through a “spend-to-invest” approach in support of the Asta Cita national development agenda. Using a descriptive qualitative design and document analysis of defense spending data from 2021 to 2025, the study finds that the defense budget rose from Rp154.88 trillion in 2021 to Rp264.35 trillion in 2025, but the spending structure remains oriented toward management support and operational needs. Investment in research and development, local content (TKDN), technology mastery, and domestic defense industry involvement remains limited. Key obstacles include routine spending dominance, import-dependent procurement, weak technology transfer, and reliance on foreign components. The study recommends a five-pillar “spend-to-invest” model: budget recomposition, local-content-based procurement, research and technology transfer, domestic supply chain resilience, and indicator-based governance. This model can strengthen industrial self-reliance and economic resilience in support of Indonesia Emas 2045.
Co-Authors Muliahadi Tumanggor Suwito Suwito