On February 20, 2025, the Dutch Minister for Foreign Trade and Development presented a policy letter to the House of Representatives outlining a new approach to international development. The government announced a structural reduction in international development spending by €2.4 billion starting in 2027, reducing the budget from 0.62% of gross national income (GNI) in 2024 to 0.44% by 2029. This shift reflects a strategic focus on aligning international development efforts with Dutch interests, prioritizing trade and economic growth, security and stability, and migration management. The policy emphasizes leveraging Dutch expertise in areas like water management, food security, and health while narrowing efforts to a limited number of countries, mainly near Europe.
Key changes include phasing out projects related to gender equality, education, sports, and culture while scaling down climate and civil society initiatives. However, humanitarian aid will remain a cornerstone of Dutch foreign policy. The government aims to foster partnerships that mutually benefit the Netherlands and recipient countries by enhancing trade links, supporting local businesses, and addressing global challenges like migration and instability.
The Dutch policy shift has implications for Indonesia’s CSO’s enabling environment in terms of accessible and sustainable resources. It will reduce funding for CSOs focusing on gender equality, education, climate action, or cultural projects that face funding cuts as these areas are deprioritized. This jeopardizes ongoing programs and limits their ability to address critical local issues. Furthermore, reduced funding for civil society initiatives could, in the long term, weaken CSOs’ ability to advocate for marginalized communities or address systemic issues like gender inequality or climate change.
Dutch’s policy shift represents a structural transformation that could reshape how international aid operates in Indonesia, affecting both civil society capacity and broader development outcomes. The €2.4 billion reduction in Dutch international development spending will structurally limit resources available for Indonesian CSOs. Moreover, by tying aid to trade and economic goals, the policy redefines development cooperation into a transactional model that prioritizes donor benefits over recipient needs. In addition, as a prominent donor country, the Netherlands’ policy shift may influence other nations to adopt similar approaches, further constraining resources for Indonesian CSOs.