Indonesia’s Membership in Trump’s Gaza Peace Board Could Cut Defense Budget by 9%

KN. Indonesia’s planned $1 billion contribution to the Board of Peace for Gaza, an international initiative initiated by US President Donald Trump, will be funded through the Defense Ministry’s budget, Finance Minister Purbaya Yudhi Sadewa said. “The funds will be taken through the Defense Ministry,” Purbaya told reporters in Jakarta. “If the allocation is insufficient, we will reorient spending. What matters is that we maintain prudent fiscal management.”

The contribution would reduce the Defense Ministry’s budget by about 9% from its total allocation of Rp 187.1 trillion ($11.1 billion) this year. The ministry’s budget is used to pay salaries for civilian staff and military personnel, as well as to strengthen Indonesia’s weapons systems and defense capabilities.

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