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Bisnis | Ekonomi - Posted on 04 February 2026 Reading time 5 minutes
Finance Minister Purbaya Yudhi Sadewa said that the membership fee for the Board of Peace, an initiative established by former U.S. President Donald Trump, will be financed through the Ministry of Defense’s budget allocation. Indonesia’s participation in the forum was marked by President Prabowo Subianto’s signing of the Board of Peace Charter in Davos, Switzerland, on January 22, 2026. The membership contribution is set at US$1 billion, equivalent to approximately Rp16.76 trillion, or nearly Rp17 trillion.
Purbaya explained that the funding mechanism will be channeled through the Ministry of Defense. However, he noted that if the ministry’s budget proves insufficient, the government will reallocate funds from other budget items, although he has yet to specify which posts would serve as backups. He emphasized that maintaining overall budget stability remains a key priority.
For reference, the Ministry of Defense’s budget for 2026 is set at Rp187.1 trillion. The bulk of this allocation is designated for defense modernization, including the procurement of military equipment across all service branches, non-weaponry needs, and the development of supporting infrastructure. These provisions are stipulated in Presidential Regulation No. 118 of 2025, enacted on November 28, 2025, which divides the budget into defense functions amounting to Rp186.6 trillion and education functions totaling Rp490 billion.
Source: cnbcindonesia.com
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