Country Risk

Increased state funding for political parties unlikely to reduce influence of politically connected individuals in Indonesia’s elections

17 January 2018


On 11 January 2018, Indonesia’s presidential palace announced an increase in state subsidies for political parties.

On 4 January 2018, President Joko “Jokowi” Widodo ratified the decree, which increases subsidies for political parties from USD0.01/vote to USD 0.07/vote at the national level, USD0.08/vote at the provincial level, and USD0.10/vote at the district level. This decree reverses a 2005 presidential decree whereby the level of financial assistance had been reduced from these stipulated rates to USD0.01/vote following frequent allegations of financial malpractice by the country’s political parties. This decree was promulgated by the Ministry of Law and Human Rights on 5 January 2018 and is therefore in effect already.

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