Jakarta. Indonesia vows to remain a donor to the UNRWA as Jakarta makes annual multi-million-dollar contributions to the UN Palestinian refugee agency that is now grappling with a massive budget deficit.

Foreign Minister Sugiono represented Indonesia -- a staunch supporter of Palestine -- at UNRWA’s yearly ministerial meeting in New York on Thursday afternoon local time. UNRWA has been the main humanitarian provider in Gaza under Israeli aggression. Sugiono acknowledged the “financial shortfalls” that had hit UNRWA, while highlighting how important it is to save the agency due to its importance for millions of Palestinians.

“Sustained and predictable funding is the lifeline of UNRWA’s operations. Indonesia remains committed to contributing to UNRWA, both through our government and other innovative channels,” Sugiono told the forum.

The UNRWA reported that Indonesia had contributed $3.2 million to UNRWA throughout last year. About $2 million of the money went to the Palestinian Flash Appeal between April and December, while Indonesia gave the remaining $1.2 million of cash to the agency’s program budget. 

UNRWA’s commissioner-general Philippe Lazzarini warned that the agency’s cash shortfall could exceed $200 million between Q4-2025 and Q1-2026, something that he attributed to the US cutting its foreign aid. Lazzarini, however, did not mention the US, once the UNRWA’s top donor, by name. Israel accused a dozen of UNRWA’s staff of taking part in the October 7 attack by Hamas, thus leading to the funding pause by the US. Lazzarini also revealed that the UNRWA had been trying to pay its staff salaries by implementing austerity and cost control measures amounting to $150 million.

“Unlike in previous years, the projected income in the first quarter of 2026 is far too low to absorb any deficit from 2025. In the absence of a significant influx of new funding, the delivery of critical services to millions of Palestinian refugees across the region will be compromised before the end of the year,” Lazzarini said.

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