February 4, 2026 | 11:49 am
TEMPO.CO, Jakarta - The Indonesian government assures that financial contribution for the Trump-backed Board of Peace will not disrupt the state budget's stability. According to Finance Minister Purbaya Yudhi Sadewa, the Rp16 trillion payment is still within a safe fiscal space.
"Rp16 trillion is not a big issue," said Purbaya after attending the Indonesia Economic Summit at the Shangri-La Hotel Jakarta on Tuesday, February 3, 2026.
The payment will be channelled through the Indonesian Ministry of Defense, derived from the state budget. Purbaya stressed that the government will be sure to implement cautionary principles in budget management to avoid creating new fiscal pressures.
He mentioned that the government still has several options, including making adjustments or reorienting the budget if necessary. However, he stressed that these will be taken in a measured manner while maintaining fiscal discipline.
Indonesia's decision to make payments for the Board of Peace was previously announced by Foreign Minister Sugiono. He stated that President Prabowo Subianto has agreed to contribute approximately US$1 billion or around Rp16.7 trillion.
According to Sugiono, the funds will be used to support the financing of the recovery of Gaza, Palestine, denying the notion that this contribution is a membership fee for the Board of Peace.
Indonesia officially joined the Board of Peace on Thursday, January 22, 2026. President Prabowo Subianto signed the Charter of the Board of Peace at the World Economic Forum in Davos, Switzerland. Indonesia was one of the 20 countries present at the launch of the initiative.
Novali Panji Nugroho contributed to the writing of this article
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