Monday, August 17, 2009

Full Transfer of Indonesian Military (TNI) Businesses by October

The transfer of military-run businesses to government entities run by civil servants, as mandated by law, is expected to be completed by October.

Following the fall of the authoritarian Suharto in May 1998, the military was forced to relinquish its seats in the House and eventually to agree to hand over its lucrative business ventures to the government. The House passed a law in 2004 requiring the government to take over all military-owned businesses by the end of 2009.

An independent team assigned to verify the military’s business interests reported that after auditing 1,098 military cooperatives and 23 foundations, it had found assets totaling Rp 3.4 trillion ($312.8 million). The team uncovered extensive real estate holdings, including shopping malls, hotels and office buildings.
The move to force the military to sell its businesses was based on concerns that a financially independent military would undermine civilian control, contributing to further abuses of power and impeding reforms.

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