New Indonesian Military Law could bring economic consequences

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New Indonesian Military Law could bring economic consequences
New Military LawEconomic Consequences
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A gleaming new data centre sits less than half a mile from the electric substation where a fire plunged Heathrow Airport into darkness last week. The data centre's own power was also cut that day. But no one who relied on it would have noticed, thanks to a bank of batteries and backup generators designed to kick in instantly.

Protester clash with riot police officers during a rally against the passing of a controversial revision of a military law that will allow military officers to serve in more government posts without resigning from the armed forces, in Surabaya, East Java, Indonesia , Monday, March 24, 2025. - AP

“Economically, placement of active TNI members in civilian positions could spark resource inefficiency. That is due to the skills gap in the military, given that it is different from civilian , particularly in strategic decision-making,” he said. The government and the House of Representatives passed the controversial TNI Law revision last Thursday, which many feared would undermine civilian supremacy and result in democratic backsliding.

Protests also broke out in other cities including Yogyakarta, East Java capital Surabaya and South Sulawesi capital Makassar, as well as in Surakarta, the Central Java hometown of former president Joko “Jokowi” Widodo. Composed primarily of students and activists, the protesters called on the government to revoke the TNI Law revision.

As for the Indonesia Stock Exchange Composite index momentarily plunging seven per cent on March 18, Cheah has attributed this to the government’s expansionary fiscal policy, which many fear could harm the country’s credit rating.

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New Military Law Economic Consequences

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