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Indonesia Says Peace Board’s Voluntary $1 Billion is for Gaza Reconstruction

Jayanty Nada Shofa
January 28, 2026 | 10:06 am
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President Prabowo Subianto signs the Board of Peace document on the margins of the annual World Economic Forum gathering in Davos on Jan. 22, 2026. The Indonesian leader sits next right to his American counterpart Donald Trump. (Photo Courtesy of Presidential Press Bureau)
President Prabowo Subianto signs the Board of Peace document on the margins of the annual World Economic Forum gathering in Davos on Jan. 22, 2026. The Indonesian leader sits next right to his American counterpart Donald Trump. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Foreign Minister Sugino said Tuesday that the US-led Board of Peace had asked for nations to make a voluntary payment of $1 billion to stay in the club forever, and the money raised would go into reconstructing the war-torn Gaza.

He, however, did not explicitly confirm nor deny whether Jakarta would financially contribute to the body.

US President Donald Trump’s Board of Peace for Gaza has been grabbing headlines since its launch in Davos last week. The committee aims to oversee the Gaza reconstruction.

Its $1 billion buy-in quickly became a hot topic, as members have to pay such a sum if they want to extend the three-year membership to a permanent seat. Foreign Affairs Minister Sugiono clarified that there was “no membership fee”. Any newcomer automatically earns the three-year term for free. However, the body does need money to rebuild the Palestinian enclave from scratch, and is now voluntary contributions from members for cash. 

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“The board aims to address the Gaza situation, including its redevelopment. But who will pay for the Gaza reconstruction? Where will the money come from? For this reason, countries are being invited to chip in and will receive permanent membership in return,” Sugiono told reporters shortly after meeting with lawmakers.

When Indonesia first announced membership last week, Foreign Ministry's spokesman Vahd Nabyl A Mulachela said at the time that there had "not been any talks of payment so far". 

Ex-Deputy Foreign Minister Dino Patti Djalal — who has been quite a sharp critic of Jakarta’s board entry — recently urged the government to clearly state that Indonesia would not make that $1 billion payment.

“The [$1 billion] price tag is 500 times bigger than Indonesia’s annual dues for the ASEAN Secretariat,” Dino said in a video statement. 

A futuristic blueprint for the post-war Gaza sits at the center of this megaproject. Washington has imagined Gaza as a futuristic dreamscape with coastal tourism and robust digital infrastructure, among others. 

Trump’s son-in-law Jared Kushner —  who has no formal role in the current administration — revealed that government contributions would make up the initial funding. He claimed that this could bring “amazing investment opportunities” for the private sector. Despite the grand plan, attracting investments all boil down to the security. 

“Without security, nobody is going to make investments. ... We need investments in order to start giving jobs. ... About 85% of Gaza's GDP [gross domestic product] has been aid for a long time. That's not sustainable,” Kushner said at the board's launch ceremony in Davos not long ago.

Aside from the $1 billion price tag, Indonesia has caught flak for being on the same board as Israel. Amidst these concerns, Sugiono reaffirmed that "Palestinian independence and sovereignty remain Indonesia's goal".

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