Jakarta. Indonesia’s planned $1 billion contribution to the Board of Peace for Gaza, an international initiative initiated by US President Donald Trump, will be funded through the Defense Ministry’s budget, Finance Minister Purbaya Yudhi Sadewa said on Tuesday.

“The funds will be taken through the Defense Ministry,” Purbaya told reporters in Jakarta. “If the allocation is insufficient, we will reorient spending. What matters is that we maintain prudent fiscal management.”

The contribution would reduce the Defense Ministry’s budget by about 9% from its total allocation of Rp 187.1 trillion ($11.1 billion) this year. The ministry’s budget is used to pay salaries for civilian staff and military personnel, as well as to strengthen Indonesia’s weapons systems and defense capabilities.

President Prabowo Subianto confirmed Indonesia’s participation in the board following meetings with Trump and other heads of state on the sidelines of the World Economic Forum in Davos late last month.

The Board of Peace for Gaza was formed as a multilateral platform aimed at facilitating post-conflict stabilization, humanitarian coordination, and longer-term reconstruction efforts in Gaza. The initiative brings together a small group of participating countries and leaders, with a stated goal of promoting ceasefire arrangements, humanitarian access, and political dialogue amid the prolonged conflict in the Palestinian territory.

According to Indonesian officials, the proposed $1 billion contribution would secure Indonesia’s membership in the board for a three-year period, effectively making it a permanent member during that term.

However, Foreign Minister Sugiono said separately that board members are not formally obligated to pay mandatory membership fees.

“There is no obligation for member states to pay a contribution,” Sugiono said without clarifying whether Indonesia would ultimately provide financial support.

On the same day, Prabowo met with Muslim leaders in Jakarta to explain the government’s decision to join the peace board. The move has drawn domestic criticism, with opponents arguing that the initiative risks aligning Indonesia too closely with US and Israeli interests and failing to adequately represent the aspirations of the Palestinian people.

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