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Edi Sudrajat - the 10th Commander of the Indonesian Armed Forces
Last month, netizens in Indonesia were outraged. The growing controversy surrounding the revised security bill sparked public concern. Many citizens voiced opposition, but their appeals proved futile. Despite widespread resistance, Parliament approved the bill without hesitation.
This triggered demonstrations across the country. From Jakarta to Jayapura, citizens gathered at their local parliaments demanding one thing: retract the revised security bill.
To this day, parliament won't back the decision. Â If so, is the people's concern valid? The answer is yes. Indonesia lived through thirty-two years of military involvement in government during the New Order, and even earlier under the Old Order. There was a time when soldiers held influence not only in politics but also in the economy. The question is: how did their presence shape the economy, and why should guns stay out of business?
History 101
As the saying goes, "TNI Bersama Rakyat" contains some truth in it. The military's roots in the economy trace back to the independence war period. At that time, the army did not have the proper supplies to fight the Dutch. That is why the army could not fight confrontational manner. It just was too risky. To combat them, the concept of Perang Gerilya Semesta was introduced. This method of war requires the elements of civil, army, and political society to unite and participate in the war. The method works. This unity led communities to feed, shelter, and support soldiers. In return, the military pledged to repay this support. Their repayment would be either in effort or later years (Samego, 1998).
During the war, one thing became clear. The military conditions aren't getting any better. In the context, the welfare of the soldiers. Even getting basic needs like clothes is hard (Borsuk, R., & Chng, N, 2016). With the newly formed state also facing immense hardship, the military could not rely on government support. The solution that many military commanders took was to do business.
The business that they did was smuggling. During a time of war and instability, access to trade routes and goods was limited. Yet the military, with its structure and reach, had resources that others didn't. They seized this opportunity. Teuku Mohamad Daud, a soldier turned businessman, once said, "We have to finance our supplies by smuggling agricultural products from Riau" (Borsuk, R., & Chng, N, 2016).
Their economic role grew more prominent during the Nationalization initiative. In a move to eliminate Dutch influence, the government forcibly nationalized Dutch companies (Setiyono, 2024). To make sure the operation still happens, the government entrusts the military to take over. This was done because the government believed only the military had the enough resources to manage a company (Ardanareswari, 2019).
