Jakarta. An analyst recently warned that Indonesia’s peacekeeping mission in Gaza could have financial implications on its burgeoning deficit, as the world’s largest Muslim-majority country gears up to send 8,000 troops in the coming months.

Indonesia is pushing ahead with US President Donald Trump’s plan to set up a multinational force that will safeguard the humanitarian efforts in Gaza. An Indonesian official is set to be the second-in-command for the International Stabilization Force (ISF). But beyond questions over the force’s operations, Muhammad Zulfikar Rakhmat — the Indonesia-Middle East affairs analyst representing the think-tank Celios — pointed out how there remained a possibility that the ISF could inflict financial damage.

“Our defense budget keeps on rising. The question is, can the dispatch of an 8,000-strong contingent fatten up our spending and tighten our fiscal room? Our fiscal deficit already hit 2.92% in 2025, and the government wants to keep it at 2.68% this year,” Zulfikar told a virtual press briefing on Monday.

“Sending troops outside the UN mandate could lead to Indonesia having to bear all the operational and logistics costs. It is still unclear whether [the ISF] has a cost-sharing scheme.”

Indonesia has sent peacekeepers under the UN banner in the past. However, the global organization has set up a reimbursement system. Countries volunteering uniformed personnel to the peacekeeping operations get reimbursed by the UN at $1,428 per soldier monthly as of July 2019.

“So the ISF will likely put pressure on our state budget. … Early on the mission, not only will we have to send a huge team of personnel, but also heavy and medical equipment, among others. … Given Gaza’s poor infrastructure, the troops will have to set up a base camp, and this calls for a substantial investment and long-term funding,” Zulfikar said.

For Indonesia, it’d be better not to rush with the deployment by making thorough fiscal assessments beforehand. Jakarta should also consider having the peacekeepers under the UN banner to avoid fiscal risks, according to Zulfikar. 

Indonesia’s fiscal deficit stood at 0.21% of the gross domestic product (GDP) by end-January 2026, government data showed. This was already higher than the 0.09% budget shortfall registered in the same period last year. At the start of 2025, Indonesia had targeted to keep the full-year deficit capped at 2.53%, but later decided to raise it to 2.78%. The country ended the year with a 2.92% deficit, nearing the legal cap of 3% of GDP.

Indonesia’s defense budget stands at a copious amount of Rp 337 trillion ($20 billion) this year. The Defense Ministry gets about Rp 187 trillion; some Rp 5.5 trillion goes to the armed forces’ operations. 

Foreign Ministry’s spokesman Vahd Nabyl A Mulachela recently signaled that Indonesia would likely bankroll at least parts of the Indonesian troops’ Gaza operations using its state money. However, he said the “budget and amount is still in coordination.”

Prabowo has said that Indonesia’s ISF contribution could reach 8,000 soldiers, but was willing to raise those figures “if necessary”.

Just a few days ago, Trump announced that the Board of Peace had collected $7 billion in Gaza relief pledges from members. The peace board, of which Indonesia is part of, is asking members to make a voluntary contribution of $1 billion to bankroll the Gaza reconstruction. Washington has also pledged $10 billion to the group. The Board of Peace is another initiative besides the ISF that came out of Trump’s 20-point peace plan for Gaza. This international body undertakes the peace-building functions in Gaza, and likely beyond the Palestinian enclave.