Defense business administration optimization: A secondary data approach with dynamic models

Business administration plays a crucial role in supporting national defense, especially through budget management, operational efficiency, and procurement of goods/services. Effective management ensures that strategic resources can be optimally utilized to improve military readiness and resilience of the defense sector in facing domestic and global challenges. This study uses secondary data covering historical trends of budget, efficiency, and procurement of goods/services over the past two decades. By applying dynamic models such as the Vector Error Correction Model (VECM) and using EViews software, this study explores the long-term and short-term relationships between key variables contributing to defense business administration. The results show a significant trend of increasing defense budget and operational efficiency, supported by an increasingly structured procurement management system. In addition, the findings reveal the importance of data-driven technology in improving efficiency, while transparency in budget management can reduce the negative impact of corruption. External factors such as geopolitical situations and economic pressures are also found to influence policy priorities in the defense sector. The relevance of this study lies in its contribution to data-driven policy strategies, which aim to improve operational efficiency, transparency, and sustainability of defense sector management. With recommendations to integrate modern technologies and adopt more adaptive policies, this study provides an important foundation for the development of a more effective defense business administration in Indonesia.