Jakarta. The United States Agency for International Development (USAID) has been a crucial source of funding for Indonesia’s development programs, disbursing more than $800 million since 2020. However, the future of these programs is now uncertain following US President Donald Trump’s executive order to pause all foreign aid for 90 days to assess its alignment with American foreign policy.

The decision has raised concerns about the potential impact on several key USAID-funded initiatives in Indonesia, particularly in public health, water and sanitation, disaster recovery, and governance. In 2024 alone, USAID allocated $153.5 million in assistance, up from $151.6 million in 2023. The agency’s highest recorded funding for Indonesia was in 2011, reaching $279.4 million.

Foreign Affairs Ministry spokesman Rolliansyah "Roy" Soemirat said Indonesia has not received any official notification from the US government regarding the status of USAID funding or which programs might be affected. He said Indonesia views international aid as supplementary and believes the country has the financial capacity to sustain its development without heavy reliance on foreign assistance.

USAID Programs at Risk: 

Health Programs 
One of the most significant USAID initiatives in Indonesia is the Together Towards Elimination and Freedom From TB (USAID BEBAS TB) program, launched in July 2023. The five-year, $70 million initiative aims to improve tuberculosis (TB) detection, diagnosis, treatment, and prevention, supporting Indonesia’s goal of eliminating TB by 2030. USAID BEBAS TB focuses on four high-burden provinces: North Sumatra, West Java, Central Java, and East Java. The funding freeze could disrupt essential technical assistance and treatment programs that benefit millions.

In addition to TB efforts, USAID has played a critical role in supporting HIV/AIDS programs in Indonesia. The agency contributes to the Global Fund through the US President’s Emergency Plan for AIDS Relief (PEPFAR), helping provide life-saving treatment for millions of people with HIV.

Water and Sanitation Projects
USAID has also been a major force in improving access to clean water and sanitation in Indonesia. Under its Global Water Strategy Indonesia High Priority Country Plan, announced in July 2023, USAID committed more than $50 million to provide safe and climate-resilient drinking water and sanitation services to over one million Indonesians by 2027. The agency also pledged to mobilize $300 million in investments for the sector while strengthening 100 water and sanitation institutions.

The funding freeze could also impact the USAID Indonesia Urban Water, Sanitation, and Hygiene Market (IUWASH Pasar) project, a five-year, $10 million initiative designed to improve access to safe drinking water and sanitation for underserved communities. Along with the $44 million IUWASH Tangguh program, these initiatives aim to benefit 1.5 million Indonesians.

Governance and Transparency Initiatives
USAID has also supported governance and transparency initiatives in Indonesia. In March 2022, the agency launched the Effective, Efficient, and Strong Governance (ERAT) program, a five-year, $38.5 million initiative aimed at enhancing public service delivery, increasing transparency, and combating corruption in local governments. The program supports democratic governance, accountability, and human rights in Indonesia.

With the funding freeze, the continuity of these governance reforms is now in question. Experts warn that without sustained support, Indonesia’s progress in anti-corruption measures and public sector accountability could be at risk.

Disaster Recovery and Reconstruction Efforts
Since the 2004 Indian Ocean tsunami, USAID has played a key role in Indonesia’s disaster recovery and reconstruction efforts. Between 2006 and 2011, the agency contributed millions of dollars through the Tsunami Recovery and Reconstruction Fund, assisting more than 580,000 people in Aceh. USAID helped rebuild the 146-kilometer Banda Aceh-Calang road, revive the Gayo coffee industry, and strengthen disaster mitigation strategies in Indonesia.

The uncertainty surrounding USAID funding raises concerns about Indonesia’s ability to respond effectively to future natural disasters, as the agency has historically provided swift and substantial assistance during crises

USAID Cancels Job Openings Due to Budget Cuts
USAID Indonesia has canceled several job openings due to budget restrictions, according to its Instagram post on Jan. 24, 2025. The affected positions include an Infectious Disease Advisor, Project Management Specialist – Tuberculosis, and Project Management Specialist – Urban Resilience Lead. USAID Indonesia stated that these positions may be reopened in the future, allowing candidates to reapply when opportunities arise.

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