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Tense to China, Australia Allocation of Rp 2,275 Trillion to the Military

Jakarta, CNBC Indonesia – Australia announced a new defense strategy on Wednesday (1/7/2020). Where it includes increasing the ability to attack long range and also war cyber-New.

To realize this increase, Prime Minister Scott Morrison has allocated Aus $ 270 billion (US $ 185 billion), equivalent to around Rp 2,775 trillion, with an estimated exchange rate of Rp 15,000 per US dollar. That number increased by almost 40% compared to the previous defense fund allocation.

Morrison said the defense forces would significantly change their focus on projecting military power throughout the Indo-Pacific.


The move was announced amid increasing Australian tensions with China in recent times.

“We must face the fact that we have moved to a new and harmless strategic era,” Morrison said in a major policy speech, as reported AFP, Wednesday.

“Even as we look at the domestic COVID-19 pandemic, we also need to prepare for a poorer, more dangerous and more disorganized post-COVID-19 world.”

The Australian Government has committed to spend at least 2% of gross domestic product (GDP) on defense. It was announced after US President Donald Trump demanded US allies, including Australia, to increase their defenses.

Australia has fought alongside the United States in every major war of the last century, often in areas far from its coast.

According to reports, defense funds will be spent on various things, mainly buying weapons and drones. In addition, they are also interested in hypersonic and direct energy weapons such as lasers.

“As part of the strategic axis, the Australian Defense Force will focus on building stronger preventive capabilities to increase costs for each potential attacker and concentrate on direct territory for further operations,” he said.

This announcement marks a significant change in Australia’s defense posture and is widely seen as an effort to counter the growing Chinese influence in the region.

Earlier on the other hand, China had officially announced plans to spend US $ 178 billion on defense by 2020 alone.

Relations between China and Australia have deteriorated after Australia said it wanted to conduct an independent investigation into the origins of the corona virus (COVID-19), which was first discovered in Wuhan, China last December.

After the announcement of the planned Australian investigation, China has launched a number of attacks on the country. Starting from raising tariffs on Australian wheat, stopping meat imports from the country’s suppliers to calling on its citizens and students not to visit Australia.

Recently, China has also sentenced an Australian citizen to death for being involved in a drug trafficking case.

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