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View all search resultsProposal to raise state funding for political parties gains traction
The proposal to increase state funding for political parties is deemed critical to curb political corruption and make them more professional, according to First Deputy Home Minister and National Mandate Party (PAN) politician Bima Arya Sugiarto.
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Flags of political parties are seen at the office of the General Elections Commission (KPU) in Jakarta on Nov. 13, 2023, ahead of the announcement of the 2024 presidential election candidates. (AFP/Adek Berry)
P
olitical parties have welcomed a recent Home Ministry proposal to increase state financial assistance for them, in the hope of reducing their dependence on business interests, but analysts warn stronger oversight and systemic reform are needed to prevent taxpayer’s money going down the drain.
The proposal was put forward by Home Minister Tito Karnavian last Tuesday during a budget meeting with House of Representatives Commission II overseeing home affairs, in which the ministry was seeking an additional Rp 3 trillion (US$184 million) for its 2026 budget.
Tito proposed tripling the state financial assistance disbursed to political parties by raising it from Rp 1,000, as currently mandated in a government regulation, to Rp 3,000 per vote obtained in the previous legislative election.
The additional funding would be drawn from the Rp 414 billion to be allocated to the ministry’s sociopolitical affairs directorate general.
Should the proposal be approved, major parties such as the Indonesian Democratic Party of Struggle (PDI-P), which won the largest portion of House seats in the 2024 election, would receive around Rp 75 billion per year. Meanwhile, smaller parties like the Democratic Party and the National Mandate Party (PAN) would see their annual funding increase to around Rp 30 billion.
The proposal to raise the funding was intended to reduce parties’ reliance on private backers and foster financial independence, which is deemed critical to curb corruption and ensure parties’ political agendas are driven by public interest, according to First Deputy Home Minister and PAN politician Bima Arya Sugiarto.
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