Indonesia expands military as defence budget soars
Prabowo, a former general, inaugurated new commands for the army, navy and air force on Sunday to mark the largest reorganisation since the era of the authoritarian ruler Suharto, when the military maintained an extensive territorial network that reached into every province.
'The world is full of uncertainty, and even if we dislike war, wars are happening everywhere,' Prabowo said alongside senior commanders and political allies at a ceremony near of the city of Bandung.
'Indonesia does not want to take sides,' he added. 'But because of that, there is no other choice. Indonesia must have a very strong defence.'
The move underscores the growing role of South-east Asia's largest military under Prabowo, who since taking office last year has successfully backed legal changes to allow more active-duty officers in civilian posts, appointed retired officers to lead state enterprises, and expanded the military's reach into civilian programmes – including his signature free meals programme.
The military says the changes will bolster security along borders and conflict-prone regions. Critics warn it could strain public finances and revive military influence in civilian affairs, a hallmark of Indonesia's authoritarian past.
The expansion comes at a time when spending by Indonesia's defence ministry is expected to rise to US$15.2 billion this year, a nearly 50 per cent increase from its initial allocation, the finance ministry said recently. The higher budget will be used to fund the modernisation of defence equipment and infrastructure, it added.
The new commands effectively expand the military's reach across the world's fourth-most populous nation. The army gained six units in resource-rich and strategically sensitive regions from the Malacca Strait to the eastern border with Papua New Guinea, bringing its total to 21. The navy added 14, while the air force added three. BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
GitHub CEO Thomas Dohmke to step down, plans new startup
GitHub Chief Executive Thomas Dohmke said on Monday he will leave the Microsoft-owned code-hosting platform to launch a new startup, capping a tenure that included a major push into artificial intelligence through the company's Copilot products. Dohmke, who moved to the U.S. from Germany more than a decade ago after selling his startup to Microsoft, said his "startup roots" prompted the decision. "I've decided to leave GitHub to become a founder again," he said in a blog post, but did not provide details about the new venture. Before becoming CEO, Dohmke helped lead mobile developer tools at Microsoft and worked on GitHub's acquisition alongside former CEO Nat Friedman. Microsoft acquired GitHub in a $7.5 billion all-stock deal in 2018. More than 150 million developers use GitHub's tools to build, maintain and collaborate on software projects, according to the company's website. Microsoft did not immediately respond to a request for comment on Dohmke's successor. His transition period concludes at the end of the year. Dohmke said that under his leadership, GitHub expanded globally, earned U.S. FedRAMP certification for federal use and doubled AI projects on the platform. Axios, which first reported the news, said Microsoft developer division head Julia Liuson will oversee GitHub's revenue, engineering and support. GitHub's chief product officer, Mario Rodriguez, will report to head of product for Microsoft's AI platform Asha Sharma, according to the report.
Business Times
2 hours ago
- Business Times
Temasek Trust leads US$11.6 million Series A funding for carbon removal startup
[SINGAPORE] A catalytic capital vehicle by Temasek Trust – the philanthropic arm of Singapore investment company Temasek – is leading a US$11.6 million Series A fundraising for Equatic, a carbon removal and green hydrogen climate-tech startup. Besides Catalytic Capital for Climate and Health (C3H), Kibo Invest – which is a Singapore-based private investment office with a focus on climate technology – is another co-lead in this fundraising round. Equatic uses seawater electrolysis to remove carbon dioxide from the atmosphere and store it in the ocean, while simultaneously producing carbon-negative hydrogen. The Series A financing will support the ongoing engineering of Equatic's first 100 kilotonne carbon dioxide removal commercial facility, alongside further commercialisation, manufacturing and technological development, indicated a media release from C3H on Tuesday (Aug 12). The technology has been validated through pilots in Los Angeles and Singapore, with strong offtake interest. Equatic has also adopted an international standard for monitoring, reporting and verifying the amount of carbon dioxide removed. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up This has been validated by two carbon removal registries – Isometric and – allowing Equatic the ability to generate carbon dioxide removal credits under both registries. Gaurav Sant, founder and chief technology officer of Equatic, said this financing will catalyse its mission to deliver cost-effective and durable carbon removal at scale. 'The Temasek Trust ecosystem has been a foundational partner to Equatic, from early-stage philanthropic backing from Temasek Foundation to catalytic investment through C3H. We are excited to accelerate our journey with partners who share our thesis that technology translation and innovation is fundamental to mitigate worsening climate change, quickly and at scale,' he added. Ryan Tan, head of C3H, said that Equatic's technology and approach exemplify the type of bold and scalable innovation that aligns with C3H's mandate. 'We are delighted to support Equatic's goal in advancing promising climate mitigation solutions that offer permanent, durable carbon removal with green hydrogen production for scalable, tangible impact and commercial benefit,' he added. The company was awarded S$1 million in catalytic funding in 2021, when it won The Liveability Challenge, a global crowdsourcing platform for sustainability solutions presented by Temasek Foundation. It then piloted its carbon removal technology in Singapore in collaboration with national water agency PUB. Equatic was named a finalist in September last year for The Earthshot Prize, a global challenge that spotlights and supports innovative solutions to repair the planet. Temasek Trust is a founding partner of the programme.
CNA
3 hours ago
- CNA
Exclusive-Paxos joins spate of crypto companies applying for US trust bank licenses
Paxos Trust Company, the cryptocurrency firm behind PayPal's stablecoin, said it is applying to create a national trust bank in the U.S., joining a raft of digital asset companies looking to gain a larger foothold in the traditional financial system. If the charter is granted by the U.S. Office of the Comptroller of the Currency, it would allow Paxos to manage and hold assets on behalf of customers and settle payments faster. Unlike traditional banks, the license would not allow Paxos to take cash deposits or make loans. If approved, Paxos would convert its limited purpose trust charter with the New York Department of Financial Services to a federal charter under the OCC. The charter wouldn't change Paxos' business model, but would offer the "highest level of regulatory oversight... that carries more weight in the U.S. and globally," according to a source familiar with the matter. Paxos previously applied for a national trust bank charter in 2020, and the firm received preliminary conditional approval from the OCC in 2021. But its application stalled and eventually expired in 2023. Crypto platform Anchorage Digital is currently the only digital asset company with a national trust bank charter. Stablecoin firm Circle along with crypto firm Ripple also applied for national trust bank charters last month. Paxos offers businesses blockchain and stablecoin infrastructure and capabilities, and issues several of its own stablecoins. Paxos issues PayPal's stablecoin PYUSD, which has a market capitalization of more than $1 billion. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. Last month, U.S. President Donald Trump signed a law to create a regulatory regime for stablecoins, a milestone that experts said could pave the way for the digital assets to become an everyday way to make payments and move money. The law's passage was the culmination of a long lobbying effort by the crypto industry, which donated more than $245 million in last year's elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data. Paxos had previously partnered with Binance, the world's largest cryptocurrency exchange, to market and distribute the Binance USD stablecoin. New York ordered Paxos in early 2023 to stop issuing Binance's stablecoin, and Paxos subsequently ended the partnership. Last week, Paxos reached a $48.5 million settlement to resolve New York charges that the company failed to police illegal activity related to Binance, after Binance's former chief executive pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement in 2023.
