Housing scandal threatens soldier welfare amid growing military role

A recent report by IndonesiaLeaks on the alleged misappropriation of funds in an Army housing program has raised concerns over the potential for a huge departure of troops from its ranks. The case risks undermining soldiers’ morale, even as President Prabowo Subianto has elevated the Indonesian Military (TNI) to a key role in national politics.

President Prabowo appears to have placed considerable reliance on the military, reflecting both his background as a retired Army general and his skepticism toward civilian bureaucrats and politicians. This is reflected in several of his signature policies, including the food security agenda, the free nutritious meal programs, leadership appointments at state-owned enterprises and the assigning of strategic roles at government agencies.

A shift has also been observed in the balance between security forces following the regime change. The administration of former president Joko “Jokowi” Widodo relied heavily on the National Police, whereas the Prabowo administration has redirected focus on the TNI, appointing active-duty military officials to numerous strategic positions in government. The military’s strengthened role was further consolidated earlier this year with the enactment of the new TNI Law, which provides a legal basis for active military personnel to serve at various civilian institutions.

Nevertheless, troubling news has emerged for low-ranking soldiers as a Rp 586 billion (US$36 million) housing project, financed through the Army’s Mandatory Housing Savings Management Agency (BP TWP), stalled during the 2021-2023 tenure of Army chief of staff Gen. Dudung Abdurachman, who is now the President’s defense adviser. During this period, soldiers who declined to participate in the Army’s housing savings program were allegedly threatened with reassignment to far-flung, strife-torn Papua.

Dudung has explained that the program was in place since 2019. He said he first became aware of the housing issue when he took over as the Army chief from Gen. Andika Perkasa, who was appointed as TNI commander in November 2021. Andika apparently informed Dudung at the time that he had established a special team to address problems related to the BP TWP, which had encountered serious difficulties following the disappearance of Rp 400 billion in funding that eventually escalated into a corruption case. Andika formed the special team shortly after his inauguration as Army chief in November 2018.

Dudung also rejected allegations that the housing project he initiated had been abandoned, pointing to several completed housing developments in Baturaja, South Sumatra, and in Semarang, Central Java. However, he acknowledged that some projects were unfinished, such as the housing development in Jambi, for which he had decided to replace the developer to ensure the project could move forward.

Dudung added that IndonesiaLeaks had reported incomplete information when the platform claimed that 80 percent was deducted from soldiers’ pay for housing loans. He added that a monthly food allowance of Rp 3 million was provided as a separate remuneration component. Further, Dudung emphasized that he was the one who had reformed the soldiers’ housing contribution system, transferring it from Bank Tabungan Negara (BTN) to Bank Rakyat Indonesia (BRI), both state-owned lenders, due to BRI's wider coverage, while integrating an app-based system to facilitate easy access.

The Corruption Eradication Commission (KPK) announced that it would soon investigate the housing projects’ procurement, particularly if it entailed civilian involvement, while the case would be transferred to the Attorney General’s Office (AGO) if the procurement was wholly under military authority.

Corruption in the Army is not a new issue, especially in relation to soldiers’ housing programs. For instance, Rp 381 billion in housing contributions between 2013 and 2020 was found to be missing, based on an audit by the Military Police. In that case, a former finance director of BP TWP, Brig. Gen. (ret) Yus Adi Kamrullah was sentenced to 16 years in prison in February 2023 after he was found guilty of personal enrichment by embezzling Rp 127 billion of the funds.

Soldiers’ welfare, particularly for those stationed in remote and border areas, has been repeatedly raised with lawmakers at House of Representatives Commission I overseeing defense and military affairs, including during the 2019-2024 legislative term. Ahead of the 2024 elections, the Jokowi administration increased the salaries of military personnel 8 percent, officially to improve their welfare. However, many viewed it as a preelection strategy aimed at boosting public sympathy for certain candidates. Nevertheless, considering soldiers’ current realities, the gesture by policymakers to improve soldiers’ welfare appears inadequate for those who risk their lives for the nation.

Furthermore, the ongoing Army housing scandal only shows that rank-and-file soldiers continue to struggle to secure decent living conditions, even after their responsibilities have been expanded.