Figure 1. Prof. Purnomo Yusgiantoro, Ir. MSc. MA. Ph.D. giving lectures on defense economics in the National Defense Institute of the Republic of Indonesia
Prof. Purnomo Yusgiantoro, Ir. MSc. MA. Ph.D., as the founder of the Purnomo Yusgiantoro Center (PYC), gave a lecture to participants of the Regular Level Education Program (PPRA) LVIII 2018 National Defense Institute of the Republic of Indonesia (Lemhanas) on Monday, July 23, 2018. The lecture was about Defense Economics, located at the Bhinneka Tunggal Ika Room, Pancagatra Building, Floor III, the National Defense Institute of the Republic of Indonesia. The lecturers were 100 people from various backgrounds consisting of representatives of the Indonesian Army, the Indonesian National Police, Ministries, Non-Ministerial and Government Institutions, Attorney General’s Office of the Republic of Indonesia, Legislature, Private Universities, Community Organizations, Political Parties, and six friendly countries (Saudi Arabia, Australia, Bangladesh, Laos, and Pakistan).
Prof. Purnomo Yusgiantoro, Ir. MSc. MA. Ph.D. explained in the lecture, Defense Economics is a branch of science that applies economics to the problem of national defense. It is a discipline for finding the best way to allocate various national resources to meet the need for security and from all threats that affect national sovereignty. The main components of Defense Economics include defense policies and strategies, defense planning, defense industry related to the production of defense equipment for generating added value and a multiplier effect in the economy, then the calculation of optimal use of resources for defense forces usage.
Defense Economics is a part of economics that aims to transform threats into opportunities. Defense authorities of the state must understand how to solve defense problems from the economic aspects of production, distribution, and consumption. It is essential because war requires costs and is related to the nation’s economic stability. Moreover, creating peace also requires costs and resources. War often produces a large multiplier effect on a country’s economy. The calculation of the cost of the war needs to include the intangible aspect. The Defense Economics is important as one of the efforts to improve the national security.