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

Panji Suwarno


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.


Defense Program, National Economy, East Indonesia Development

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