Jakarta. Indonesia and dozens of other states have urged Israel to release billions of dollars in withheld Palestinian tax revenue. 

Israel has been holding back from transferring the clearance revenues to the Palestinian Authority, thereby hampering basic service provisions. Just about two weeks ago, Palestine revealed that Israel still owed it $4.4 billion in withheld tax revenues, which accumulated over the past 10 months. As the withheld money grows, so does the fear of a deepening financial crisis. Indonesia and many other friendly nations, including Saudi Arabia and Spain, rolled out a lengthy joint statement on Tuesday, condemning Israel’s West Bank moves. Criticisms also specifically targeted the paused transfers.

“[We] call for the immediate release by Israel of the withheld tax revenues due to the Palestinian Authority. Those revenues must be transferred to the Palestinian Authority, according to the Paris Protocol,” the foreign ministerial joint statement reads.

“Those revenues must be transferred to the Palestinian Authority, according to the Paris Protocol, and they are vital for the provision of basic services for the Palestinian population in Gaza and in the West Bank.”

Israel has been collecting taxes on behalf of the Palestinian Authority following a deal reached in the 1990s. These taxes include tariffs, purchase taxes, and value-added taxes on imported goods from Israel and the rest of the world. The revenues are the Palestinian Authority’s source of income, thereby granting Israel a financial tool to exercise control. This is also not the first time for Israel to draw flak from the international community for skipping the transfers.

As Palestinians cool their heels for the much-needed money, news outlet Al-Jazeera — quoting the Palestinian Central Bureau of Statistics and the country’s central bank — reported that the economy remained “mired in deep recession” throughout 2025. Gaza’s gross domestic product (GDP) contracted by 84% versus 2023 levels. GDP in the occupied West Bank dropped 13% over the period. Overall GDP levels also still fell short of their pre-war baseline.

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