This increase budget is intended to buy new military gear. Last year budget (2011) indonesian defence department receive annually budget at 47 trillion rupiah or about 4,7 billion dollar.
Indonesian budgeting system base on annually term (except procurement very complex and costly system). So with this significant increase maybe indonesia defence department will buy more complex weapon system such of subrarine, frigate and maybe jetfigter.
In long term procurement , indonesia defence department has plan to buy 10 submarine until 2020 and with South Korea will jointly make 4.5 gen warplane.
Its very interesting to analysis this budget increasing. We know, recent day south east asia situation become more volatile, such situation in spartly island. Even indonesia isnot claimant of this disputed teritory but still fell to always 'in catch' with its neighborhood country. As we know malaysia had alread handed their two brandnew submarine from french. Singapore also has very new weapon aqcuasition, and Pilipine did the same.
Just only time will see whether indodnesian increasing budget will be follow by it neighborhood.