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Implications of the Defense Program in the Context of National Economic Progress (Case Study of Development in East Indonesia)

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Implications of the Defense Program in the Context of National Economic Progress (Case Study of Development in East Indonesia) 769 International Journal of Progressive Sciences and Technologies (IJPSAT) ISSN: 2509-0119. © 2020 International Journals of Sciences and High Technologies http://ijpsat.ijsht-journals.org Vol. 23 No. 2 November 2020, pp. 329-336 Implications of the Defense Program in the Context of National Economic Progress (Case Study of Development in East Indonesia) Panji Suwarno Universitas Pertahanan Indonesia, UNHAN Indonesia Abstract – The eastern part of Indonesia is one of the strategic areas where this region is nationally concerned with the lives of many people, from the point of view of political, economic, social, cultural, environmental, and defense and security interests. From a regional development point of view, there are still many areas in Eastern Indonesia that are developing slowly with low accessibility and are dominated by underdeveloped regions with very limited social and economic facilities and infrastructure. According to the defense economy, the impact of the use of the defense budget on the economy can be viewed from the demand or consumption and supply or production approaches. From the consumption side, the defense can protect national resources against various threats, so that national consumption becomes stable and even increases. On the other hand, this paper wants to see the defense program from the production side. By using qualitative methods through literature review, this paper aims to look at infrastructure development carried out by the TNI, with a case study of locations in Papua. The construction of the Trans Papua road which is covered in forests and security threats is the main obstacle. A trained Engineer Unit can do it well, which civilian agencies cannot afford. Apart from eliminating threats, defense programs must also be able to provide a multiplier effect on the welfare of the community, as has been done by the TNI in assisting infrastructure development in Papua. This shows an example that a productive defense program can boost the economy and welfare in a region, where the private sector cannot / dare to enter due to various constraints in the region. Keywords – Defense Program, National Economy, East Indonesia Development. I. INTRODUCTION slowly with low accessibility and are dominated by underdeveloped regions with very limited social and By the mandate of the Proclamation of Independence economic facilities and infrastructure. In general, these areas which states that "The transfer of power and others shall be are not touched by the dynamics of development so that the carried out entirely and in the shortest possible time and the condition of the people is generally in poverty, even in some Preamble of the 1945 Constitution, it is stated that: (1) the areas bordering neighboring countries, the people tend to be state protects the entire nation and all spills of blood; (2) oriented towards neighboring countries in terms of social and promote public welfare and educate the nation's life. This economic services. (BNPP, 2010). means that maintaining the sovereignty of the Republic of Indonesia, both land, sea, and air, including citizens, Significant problems from the eastern part of Indonesia, maritime boundaries, islands, and their natural resources is an in this case, study, especially in the Papua region are absolute thing to do. vulnerabilities in the defense and security sector in the region, the isolation of the region and the underdevelopment in the The eastern part of Indonesia is one of the strategic areas level of regional development, the management of natural where this region is nationally concerned with the lives of resources is still not optimal, and the low availability of many people, from the point of view of political, economic, quality. and the number of human resources. Regional social, cultural, environmental, and defense and security isolation and the backward level of regional development interests. From a regional development point of view, there include the lack of local government funding, the difficulty are still many areas in Eastern Indonesia that are developing Corresponding Author: Panji Suwarno 329 Implications of the Defense Program in the Context of National Economic Progress (Case Study of Development in East Indonesia) of building a transportation network system that can serve economy. It is hoped that this research will contribute to well, and the condition of the road network which is still science to defense and economic development in Indonesia. damaged. II. MATERIAL AND METHODS Management of natural resources is still less than optimal, The research method used is a literature review by looking including unmanaged marine fishery potential, unmanaged at theories that support the role of defense programs to oil and gas potential, unmanaged energy and minerals, illegal improve the economy and community welfare, and their exploitation of natural resources, environmental management application in the development of road infrastructure in still causing pollution, and management patterns of Papua. agricultural commodities are still traditional and cultural which is inherited. Meanwhile, the low availability of quality Economic and Defense Relations and quantity of human resources, including the low level of a It is believed that there is a relationship between defense real education, low level of skills, lack of infrastructure and spending and the economy. In reality, there are varying facilities for the service needs of the population, basic effects for each country when the defense budget deals with infrastructure and facilities, clean water, electricity, telephone, and others (Ahmadi, 2019). the economy. However, from the studies of economists, there is still no convincing opinion from the empirical tests that Therefore, the approaches that must be taken in have been carried out. For example, Kennedy (2016) tested formulating policies and strategies for the development of the whether the national defense budget can stimulate eastern part of Indonesia, especially Papua in the involvement investment, it turns out that empirical results show that of the Indonesian National Army (TNI) are: Indonesia's defense budget still has a crowding-out effect on investment, where there are many other opinions from a. Welfare Approach; where the approach is taken is based different studies. on the development of economic activities to improve community welfare; The channel that can be used by the government to influence the economy, especially economic growth, is b. Environmental Approach; namely an approach that through fiscal policy. The state can play a role through direct considers environmental sustainability and minimizes investment funding through the efficient provision of public the impact that development activities will cause; and services to encourage economic activity and stimulate long- term investment. Defense spending, a government policy, is c. Security Approach, namely an approach that considers expected to have a positive effect on the economy. The the need for surveillance of regional security to maintain research method used is a literature review by looking at the integrity of the Unitary State of the Republic of theories that support the role of defense programs to improve Indonesia. the economy and community welfare, and their application in the development of road infrastructure in Papua. Development must prioritize the "security" function and Brasoveanu (2010) describes the shape of the channel or the "prosperity" function by taking into account the realities channel in the economy which is affected by defense of the development of environmental conditions in the area spending. These channels include: through measurable field studies and observations (Nugroho, 2019). One of the government's main programs is the a. Research and development in the defense sector. acceleration of the development of the Papua region, Research and development in the defense sector can especially with the development of major infrastructure, have a positive influence through externalities on the namely opening the trans-Papua road. economy from the private sector. Military research and The construction of the 4,325 km Trans Papua road is not defense spending can stimulate innovations in easy, because most of the roads are still cut off and covered technology. In developing countries, the defense can in forests. Apart from that, security threats are also an assist in the formation of socio-economic structures that obstacle, which the private sector/civilians cannot possibly support growth by engaging in research and face. For this reason, TNI assistance is needed to be able to open the planned roads and minimize security disturbances. development, providing trained personnel, training, and education, and building the infrastructure needed for This study will explain government policies for national economic development (Nugroho, 2020). defense that are positive for the economy, especially in the Papua region. This research is included in the study of b. Security (security). Defense spending can drive the defense economics, which is the study of the choice of economy as it provides security to maintain stability in defense programs that can have a multiplier effect on the the business environment and maintains comfortable economy. The paper is not in the view of discussing military operations in Papua but in the form of a defense program that conditions to attract foreign investors. The existence of can help increase the production potential of the local security
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