The logical fallacy of Indonesia paying $1 billion to the Board of Peace

Indonesia may commit to paying $1 billion — roughly Rp17 trillion — to the U.S.-backed Board of Peace. This is not diplomacy, humanitarian aid, or peacebuilding. It asks Indonesians to fund the aftermath of destruction caused overwhelmingly by Israel and the United States, while creating no mechanism to prevent future violence or hold the aggressors accountable.

Rp17 trillion, likely drawn from the state budget, is staggering. It could pay hundreds of thousands of teachers, fund essential services, or support major social programs. By comparison, it is 66 times larger than Indonesia’s last U.N. contribution and roughly 500 times Indonesia’s ASEAN contribution. This is a nation-scale expenditure with immediate domestic consequences.

Indonesia cannot absorb this payment without serious repercussions. The country already faces massive debt obligations, with interest consuming a quarter of tax revenue, while social protection grows slowly and defense spending surges. Allocating billions to a foreign council with no tangible return would strain fiscal discipline, risk widening the deficit, and force emergency cuts in education, healthcare, subsidies, and regional transfers. Citizens’ welfare and essential public services could be compromised for symbolic international prestige.

The contribution provides no measurable economic benefit. It does not generate revenue, strengthen fiscal capacity, or produce tangible returns. Social programs and regional development initiatives risk being delayed or underfunded to cover the cost. Nationwide nutrition programs, cooperative development, and other flagship projects already demand vast resources; adding the BoP payment worsens fiscal pressure and threatens macroeconomic stability.

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The moral case is stark. Indonesian Foreign Minister Sugiono claims the payment is for Gaza’s reconstruction, but the destruction was caused almost entirely by Israeli military operations backed by the United States. Indonesia had no role in the destruction, yet its citizens are expected to foot the bill. Even worse, the funds are reportedly intended to disarm Hamas while leaving Israel armed, punishing the powerless and empowering the dominant. This is not peacebuilding; it is injustice.

The Board of Peace is dominated by U.S. interests. Other countries have refused participation, warning that it undermines legitimate multilateral institutions. Indonesia is paying billions for a seat where its influence is minimal, and where Palestinians remain powerless.

This decision also contradicts Indonesia’s tradition of independent, active diplomacy. Paying for prestige with no leverage or accountability is subservience disguised as influence. Public funds are being diverted to finance a foreign policy stunt that delivers neither security nor justice.

If Indonesia truly wants to support Gaza, it should direct funds through accountable humanitarian channels with measurable impact. Financial support must insist on accountability from those responsible for the violence. Writing a $1 billion check to a council that disarms the powerless while leaving the dominant actor untouched is catastrophic, reckless, and indefensible. Public money exists to protect citizens and advance justice, not subsidize destruction caused by others.

This is not diplomacy. It is folly. Before billions of rupiah are diverted from education, healthcare, and social protection to pay for consequences Indonesia did not cause, the government must reconsider. The state budget is a lifeline for citizens, not a global political slush fund. Spending it this way betrays the people it is meant to serve.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.