Bhima Yudhistira, executive director of the Center of Economic and Law Studies (CELIOS), told the The Jakarta Post on Tuesday that the law revision meant businesses “or even farmers” might have to compete with the military for jobs, particularly on government projects.

“Economically, placement of active TNI members in civilian positions could spark resource inefficiency. That is due to the skills gap in the military, given that it is different from civilian [occupations], particularly in strategic decision-making,” he said.

Involving the military in government projects might result in a crowding out effect, Bhima said, as the TNI would be filling space that should be reserved for the private sector, especially micro, small and medium enterprises.

“For example, this has happened in the free [nutritious] meal program, with a centralized kitchen and food estate [project] managed by the TNI,” he said.

He added that expanding the military’s role gave the impression that the country was reverting to a centralized system rather than one based on innovation and healthy competition, which might cause investors to reconsider both portfolio and direct investments in Indonesia.

The government and the House of Representatives passed the controversial TNI Law revision last Thursday, which many feared would undermine civilian supremacy and result in democratic backsliding.