Public Discussion: USAID Freeze for Indonesia and Alternative Solutions

Depok, February 12, 2025—Human Initiative, in collaboration with the Social Welfare Science Student Association (HMIKS) of FISIP UI, organized a public discussion titled “USAID Freeze: What Are the Impacts on Indonesia’s Humanitarian and Development Programs?” The panelists and attendees exchanged insights on the implications of the USAID aid suspension (USAID Freeze). The discussion aimed to explore alternative solutions in response to this issue in Indonesia.

The event was held at the Mochtar Riyadi Auditorium, FISIP UI, and was attended by participants from various sectors, including media, humanitarian organizations, and students. The discussion featured experts in social and humanitarian fields, including Rahmawati Husein (Indonesian Humanitarian Development Alliance), Victor Rembeth (Humanitarian Forum Indonesia), and Asra Virgianita (International Relations, FISIP UI).

USAID Assistance and Expert Perspectives

The U.S. government’s decision to halt USAID funding has raised concerns about its impact on Indonesia’s development and welfare programs. Victor Rembeth explained that the policy has been in effect since January 25, 2025. “As of January 25, all USAID programs must cease under a ‘Stop Work Order,’” he stated.

Andjar Radite, Vice President of Human Initiative, emphasized that USAID has been a crucial source of humanitarian aid for Indonesia. He noted that USAID has invested approximately $800 million USD in Indonesia’s welfare programs.

Furthermore, Rahmawati Husein highlighted that in 2024 alone, Indonesia received $153.52 million USD (around IDR 2.5 trillion) in USAID aid, primarily allocated for health and education programs. Given this significant contribution, many stakeholders view the policy as a major challenge to Indonesia’s ongoing welfare initiatives.

Impact on Indonesia’s Welfare Programs

The suspension of USAID funding poses a serious risk to Indonesia’s humanitarian and development efforts. One immediate effect is the reduction of financial aid, which could hinder or even terminate programs that previously relied on USAID support.

Moreover, humanitarian organizations that partnered with USAID are now directly affected. This may lead to an increase in domestic fundraising efforts, potentially sparking competition among NGOs. “There is a possibility that UN agencies, NGOs, and INGOs that previously received USAID funding will now seek donations from the Indonesian public, leading to competition among organizations,” said Rahmawati Husein.

Alternative Solutions to Address the USAID Freeze

Despite the USAID aid suspension, the U.S. is not Indonesia’s largest donor. “The U.S. is neither the biggest nor the sole donor to Indonesia, so the impact of this decision should not be too significant,” Rahmawati Husein remarked. Supporting this view, Asra Virgianita added, “In terms of aid to Indonesia, the U.S. ranks fifth among donor countries.”

This suggests that while the USAID Freeze presents challenges, its overall impact should be manageable. Nonetheless, humanitarian organizations can adopt alternative measures to mitigate the situation. Rahmawati Husein emphasized that NGOs should collaborate in fundraising efforts to support humanitarian programs. Additionally, she encouraged organizations to develop self-sustaining and innovative fundraising strategies.

Victor Rembeth reinforced this perspective, stating that while USAID assistance has ceased, there are still valuable lessons and resources that can be utilized. He urged the public to continue their humanitarian efforts, regardless of USAID’s withdrawal. “We have already made progress, and we must continue building upon it. Stopping now means withholding empathy. Let’s keep sharing and spreading kindness,” he concluded.