On January 20, 2025, President Donald Trump signed an executive order that put almost all international spending on a 90-day pause, during which all foreign aid programs will be reviewed, effectively freezing essential development aid funds. President Trump’s decision has significantly affected numerous civil society organizations in Indonesia. Many of these organizations rely on funding from the U.S. Agency for International Development (USAID) with $153.5 million allocated to Indonesia in 2024. This funding freeze has halted ongoing projects, leaving CSOs in a precarious position. In response to the funding freeze, some CSOs have had to implement unpaid leave for their staff, while others are managing to pay only half of their employees’ salaries until the review process concludes. The ramifications of this aid freeze extend beyond immediate financial concerns; they also threaten the livelihoods of those working within these organizations and jeopardize critical programs in health, education, and environmental conservation.
If the freeze leads to a permanent termination of US development aid in Indonesia, this would have profound implications for the civil society sector as a whole. Numerous projects to improve public services and address societal challenges would face immediate suspension or cancellation and many CSOs would be forced to downsize or close entirely, leading to job losses for staff members and reduced services provided to vulnerable populations. USAID has played a critical role in promoting democratic governance and accountability in Indonesia. The loss of this U.S. support could hinder efforts to combat corruption, promote human rights, and engage citizens in governance processes, potentially leading to democratic backsliding.