Gov’t Revises Regulation on Funding for Political Parties

In an effort to strengthen political parties institutional system through the increase in funding for political parties as well as to create transparency and accountability of the management of funding for political parties, the Indonesian Government considers that several provisions in Government Regulation Number 5 of 2009 on Financial Assistance for Political Parties as amended by Government Regulation Number 83 of 2012 on the Amendment to Government Regulation Number 5 of 2009 need to be amended.

Based on those considerations, President Joko “Jokowi” Widodo on 4 January 2018 signed Government Regulation Number 1 of 2018 on Second Amendment to Government Regulation Number 5 of 2009 on Funding for Political Parties.

In the amended Government Regulation, it is stated that the amount of funding for political parties at the central level that receive seats at the House of Representatives (DPR) reaches Rp1,000,00 (one thousand) per valid vote. “The amount of funding as intended can be increased in accordance with the condition of state finance,” Article 5 Paragraph (2) of the Government Regulation states.

In the meantime, the amount of funding for political parties at the provincial level that receive seats at Regional House of Representatives  (DPRD), according to this Government Regulation, reaches Rp1.200,00 (one thousand two hundreds) per valid vote.

For provincial government whose budget allocation of funding for political parties has exceeded Rp1.200,00 (one thousand two hundreds) per valid vote, according to this Government Regulation, budget allocation for funding for political parties for the following year is the same as the amount of funding in the current budget year.

In the meantime, funding for political parties at regency/municipality level which receive seats at regency/municipality Regional House of Representatives  (DPRD) reaches Rp1.500,00 (one thousand five hundreds) per valid vote. For regency/municipality government whose budget allocation for the funding to political parties has exceeded Rp1.500,00 (one thousand five hundreds) per valid vote, according to this Government Regulation, budget allocation of funding for political parties in the following year is the same as the amount of funding in the current fiscal year.

“The amount of funding as intended (provincial and regency levels) can be increased in line with financial ability of regional governments after receiving approval from Minister of Home Affairs,” Article 5 paragraph (7) of the Government Regulation states.

The Government Regulation also states that the funding is prioritized for the implementation of political education for members of political parties and the public, as well as operational activities of the political parties.

Furthermore, the Government Regulation also states that political parties that violate deadline submission of the accountability report, they will receive administrative sanctions in the form of not being given funding from the State Budget/Regional Budget on the following fiscal year until the accountability report is checked by the State Audit Board (BPK).

“This Government Regulation begins to take effect on the date it is promulgated,” the Government Regulation states.

The Government Regulation was promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 5 January 2018. (Pusdatin/ES) (EP/YM/Naster)