Indonesia's defence procurement system is largely a work in progress following the dilution of the armed forces involvement in military acquisitions since the fall of the Suharto regime in 1998. The present government, headed by former four-star army general President Susilo Bambang Yudhoyono, has prioritised military procurement reform and has introduced a raft of measures that are aimed at centralising policies in a bid to reduce opportunities for corruption as well as improve efficiencies. In terms of Indonesia's external procurement strategy, two key factors remain influential: the military embargo imposed by the US from 1999 until 2005, and the traditional shortfall in defence spending. In response, Jakarta has adopted a policy to diversify its suppliers based not only on their ability to provide required capabilities, but also their willingness to offer credit, usually in the form of bank loans.
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