Perludem: Political Party Funding Insufficient to Meet Party Needs

Perludem Executive Director Heroik Pratama stated that state funding for political parties, known as banpol, is not significant enough to assist with the operational needs of parties because the value is too low. “The percentage is no more than 5 per cent to meet the institutional needs of the party in running its organisational machinery,” Heroik said during a Perludem media discussion titled ‘E-Banpol: Transformation of Political Party Financial Governance’ on Friday, 3 July 2026. Based on Government Regulation Number 1 of 2018 concerning the Second Amendment to PP Number 5 of 2009 on Financial Assistance to Political Parties, at the DPR level, political parties receive Rp 1,000 per valid vote. Meanwhile, provincial DPRD receive Rp 1,200 per valid vote and district/city DPRD receive Rp 1,500 per valid vote. Besides banpol, political parties also collect membership fees and obtain funding from third parties. Nevertheless, he said, this still does not meet the parties’ needs. According to him, this results in party members seeking funds from illegal and unaccountable sources, one of which is through corruption. “With rent-seeking practices,” he said. Perludem also found that the mechanism for applying for banpol funds is not yet proportional compared to the amount of its value. In addition, the application reporting is too administrative and the administrative burden is too high. With this high administrative burden, banpol reporting becomes non-transparent. “It is not directly proportional to what is received by the party,” he said. Director General of Politics and General Government at the Ministry of Home Affairs Bahtiar handed over state funding for political parties amounting to Rp 20 billion to the Gerindra Party. Bahtiar handed the funds directly to the then Secretary General of Gerindra, Ahmad Muzani, at the Gerindra Party Central Leadership Council Office in Ragunan, South Jakarta, on Wednesday, 23 May 2025. After receiving the funds, Muzani expressed appreciation and thanks to the government for the assistance. The Chairman of the People’s Consultative Assembly explained that banpol is very important to support various party activities, including cadre education. “Although we realise that the funds do not yet fully cover the needs of the party’s activities in the future, this assistance still provides meaningful support for our party’s operations,” Muzani said, quoted from an official Gerindra Party statement from 2025. The visit by representatives of the Ministry of Home Affairs occurred several days after Deputy Chairperson of the Corruption Eradication Commission (KPK) Fitroh Rohcahyanto proposed that the government provide substantial funds from the State Revenue and Expenditure Budget (APBN) to political parties. He considered this policy could be an effort to eradicate corruption. One of the causes of corruption, according to him, is the high cost of the political system to become an official, from the village level to the president. Fitroh said that officials currently in their positions must have spent large amounts of capital, and even have backers. “What often happens in corruption cases is that the reciprocation when occupying a position will certainly provide convenience for the backers to become project implementers in the regions. This cannot be denied, and it often happens,” he said in a webinar organised by the KPK on Thursday, 15 May 2025. Coordinating Minister for Law, Human Rights, Immigration, and Corrections Yusril Ihza Mahendra assessed that the proposal to increase financial assistance for political parties is good. However, according to Yusril, the policy needs to be regulated proportionally so that no party is deliberately established just to obtain funding assistance. Yusril added that large parties should not become larger and small parties become smaller. “So we also have to think about a fair system,” Yusril told reporters at the Ombudsman Office in Jakarta on Thursday, 22 May 2025.