President Prabowo Hikes Military Allowances in Key Fiscal Move

JAKARTA, Investortrust.id — Indonesian President Prabowo Subianto signed landmark executive decrees to boost performance allowances for the Indonesian National Armed Forces (TNI) and civil servants at the Ministry of Defense, marking a significant recalibration of defense expenditure.

The newly enacted Presidential Regulation (Perpres) Nos. 42 and 43 of 2026 revise baseline rules established in 2018. Government documentation confirms the legacy rules no longer matched bureaucratic reform targets achieved by the defense apparatus.

Restructuring Pay Tiers Across Military Ranks

Under the updated compensation scale, four-star generals serving as army, navy, or air force chiefs of staff receive monthly performance allowances of Rp 48.61 million ($3,057). Three-star commanders—including the military general chief of staff and vice chiefs of staff—receive Rp 44.87 million ($2,822) per month.

At the base tier, lowest-ranking enlisted personnel receive Rp 2.5 million ($157) per month under Class 1 roles, while Class 2 positions climb to Rp 2.9 million ($182) monthly.

Indonesian President Prabowo Subianto attends a simultaneous grand harvest event alongside military personnel in Malang on Friday, July 17, 2026. Photo: BPMI Setpres/Cahyo

Defense Ministry Welcomes Long-Awaited Reforms

Defense Ministry Information Bureau Chief Brigadier General Rico Ricardo Sirait confirmed newsrooms received copies of the signed decrees on Wednesday, July 29, 2026. He noted the ministry will implement the pay adjustments swiftly in accordance with administrative procedures.

Speaking to journalists during a press briefing in Jakarta on Wednesday, July 29, 2026, Sirait highlighted the strategic necessity of the allowance adjustment after an eight-year freeze.

"This adjustment is expected to further enhance motivation, professionalism, and the quality of dedication among all personnel as they fulfill their duties in safeguarding national sovereignty and supporting the government's strategic programs," Sirait said.

Sirait noted that while other ministries secured performance allowance increases earlier, defense sector compensation had remained frozen since 2018. He emphasized that "this policy is part of the government's evaluation mechanism conducted in accordance with applicable regulations" to reward proven bureaucratic reform.