GOVT TO INCREASE DEFENSE BUDGET 20 PCT IN 2010

Bandung, July 10 (ANTARA) - President Susilo Bambang Yudhoyono said the government would raise the defense budget by 20 percent in 2010.

The head of state made the statement when witnessing the hand over of 40 APS 6X6 armored vehicles from TP Pindad to the National Defense Forces (TNI) at the PT Dirgantara Indonesia office here on Friday.

"Starting next year the the government will raise the defense budget significantly from Rp33.6 trillion this year to Rp40.6 trillion, or an increase by 20 percent in 2010," the president said.

According to the head of state, the budget increase in 2010 would be the starting point of the gradual expansion of the defense budget over the coming years.

"Year after year we are going to increase the defense budget, and so we will get closer and closer to the minimum military strength that we need," the president said, adding the minimum military strength the country should have required a budget of Rp100 to Rp120 trillion.

He said the increase in the defense budget would be realized in accordance with national economic growth.

The president admitted that the defense budget in the past few years was lower than expected because the government had been concentrating on improvement of the people's welfare.

Before witnessing the hand over of the 40 armored vehicles from PT Pindad to the TNI, the head of state chaired a limited cabinet meeting with TNI Chief Gen Djoko Santoso, Defense Minister Juwono Sudarsono, Minister/State Secretary Hatta Radjasa, and Cabinet Secretary Sudi Silalahi to discuss a blueprint for the modernization of Indonesia's defense system.

Yudhoyono on the occasion said the blueprint for the modernization of the defense system was needed to realize a firm defense posture.

But he added that the blueprint would be adjusted with the state budget.

Meanwhile, Defense Minister Juwono Sudarsono said the 40 APS 6x6 armored vehicles were made by PT Pindad at a cost of Rp1.12 trillion from the state budged for 154 armored vehicles.

He said the armored vehicles were the first domestic products since the reform era.