Parliament green-lights KRI Teluk Sampit warship sale

Internal Affairs

Commission I of the House of Representatives has approved the sale of state-owned asset in the Ministry of Defence, a warship KRI Teluk Sampit 515, after considering the explanation provided by the government.

“Seven parliamentary factions have given their approval for the sale of a state-owned asset, the ex-KRI Teluk Sampit-515, in the Defence Ministry,” Deputy Chair of Commission I that oversees defense, foreign and information affairs, Abdul Kharis Almasyhari, said at the conclusion of a meeting in the Parliament Complex here on Thursday.

The meeting deliberated on the President’s Letter No. R-57/Pres/12/2021 on the request for approval for the sale of state-owned asset in the Ministry of Defence, KRI Teluk Sampit-515.

Officials from the Ministry of Defence, Ministry of Finance, as well as the Indonesian Military Chief General Andika Perkasa and the Indonesian Navy Chief of Staff Admiral Yudo Margono attended the meeting.

Before reaching the final decision, representatives of each parliamentary faction delivered their statement on the proposal. Of the nine parliamentary factions in the parliament, representatives from the National Democratic Party (NasDem) and United Development Party (PPP) were absent from the meeting.

Commission I member from the Indonesian Democratic Party of Struggle (PDIP) faction, T.B. Hasanuddin, said that his faction approved the sale proposal, but wanted the revenue from the sale to be used for national defense development purposes.

“The asset values need to be reassessed to ensure the auction value is consistent with the actual asset value,” Hasanuddin added.

Meanwhile, Deputy Minister of Finance Suahasil Nazara said that the sale of the warship is expected to contribute Rp173 billion (US$12.1 million) to the state revenue.

The naval ship has suffered damage on the hull, while the ship’s engine, electricity system, navigational equipment, and instruments are in suboptimal conditions, he noted.

“It is not economically feasible to repair the ship. If the ship is not phased out sooner, the ship value will decline further, and we will lack space to dock other ships. Moreover, there is a potential of state revenue if we sell the ship,” Nazara added.

Source: Antara News