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A tailored approach to the foreign policy budget
As global uncertainty increases, driven by intensifying competition among great powers, a dramatic budget cut to the Foreign Ministry could compromise both Indonesian foreign policy capabilities and contingency preparedness.
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Members of the United Nations General Assembly vote on a resolution at the resumed 10th Emergency Special Session meeting on the situation in the Occupied Palestinian Territory on Sept. 18, 2024.. (UN Photo/Evan Schneider )
W
hen people celebrate Valentine’s Day with various recreational expenses, Indonesian civil servants may have to embark on one of their most difficult episodes. The Finance Ministry has set the date as the deadline for a historically unprecedented budget cut.
Government expenditure is a key component of a nation’s gross domestic product, and any increase or decrease will certainly have a significant multiplier effect. At home, at least, a dramatic decrease in stationery orders, hotel occupancy and meeting packages must be compensated for by significant growth in other sectors to maintain desirable levels of economic growth.
Every government agency, both national and local, will receive a reduced budgetary allocation due to President Prabowo Subianto’s decision to prioritize funding for his flagship free nutritious meal program. Only a few agencies are rumored to be exempt from this latest austerity measure, including the Defense Ministry, the National Police and the National Intelligence Agency (BIN). Others will need to downsize their programs, with the only exceptions being social assistance and personnel costs.
The Foreign Ministry is not, at least as far as news circulates, among those exempted. While the rationale behind the cuts is understandable, an indiscriminate reduction in the budget could significantly impact foreign policy, contradicting the image President Prabowo has been working to build.
Before implementing substantial budget cuts to foreign policy, at least two critical warnings must be considered.
First, foreign policy must be treated as a specialized area of public policy, as it is directly linked to national security and often involves a degree of urgency and emergency. The Foreign Ministry must have the capacity to prepare contingencies.
History has shown that Indonesia gained independence and survived the Cold War not only because of domestic perseverance but also due to the foreign policy efforts of its diplomats abroad. As global uncertainty increases, driven by intensifying competition among great powers, a dramatic budget cut to the Foreign Ministry could compromise both Indonesian foreign policy capabilities and contingency preparedness, especially when Indonesia’s foreign policy budget is already among the lowest compared with Group 20 and ASEAN-6 peers.
