Indonesia has announced a strong increase in its annual defence budget despite rising economic challenges related to Covid-19. The government has indicated that the increase is required to boost military modernisation objectives. Documents recently published by the Ministry of Finance (MoF) in Jakarta showed that the country's defence budget for 2021 has been set at IDR136.99 trillion (USD9.2 billion). The documents also show that 2021 expenditure will be 16.2% more than the 2020 defence budget of IDR117.9 trillion. This 2020 allocation was latterly revised upwards to about IDR131 trillion but then cut down to about IDR122.4 trillion in April in response to fiscal pressure stemming from the Covid-19 crisis.
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