This study investigates the key determinants of defense spending in Indonesia using the Analytical Hierarchy Process (AHP) to prioritize factors influencing budget allocations. Indonesia’s unique strategic position, resource wealth, and internal security challenges necessitate a comprehensive approach to defense budgeting. The AHP methodology was employed to assess the relative importance of four main criteria: National Resources, Internal Geopolitics, Finance, and Global Geopolitics. Data were gathered from a combination of literature reviews and insights from key stakeholders, including government agencies and academic experts. The results indicate that National Resources, particularly natural wealth such as oil, are the most critical factors driving military expenditure, highlighting Indonesia’s dependence on resource-based revenues. Internal Geopolitics, focusing on political stability and internal conflicts, also significantly influence defense spending, emphasizing the need for a stable domestic environment. The findings further reveal varying perspectives among stakeholders, particularly in financial and geopolitical considerations, underscoring the challenges in aligning strategic priorities. This research offers a structured framework for optimizing defense spending, providing valuable insights for policymakers in Indonesia and other nations with similar budgetary constraints. The study highlights the importance of a cohesive and informed defense budgeting strategy to enhance national security and economic sustainability.

defense spending; analytical hierarchy process (AHP); military expenditure; budget allocation; Indonesia

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