Habibie Democracy Dialogue

Details

As a key element in the democratic system, political parties in Indonesia face a crisis of public trust. Various surveys show that political parties are consistently at the bottom in terms of public trust in public institutions. This low trust is influenced by the party's poor performance, the involvement of cadres in corruption cases, and the dominance of rent practices that make the party a vehicle of power. In this context, improving the funding system for political parties needs to be a strategic agenda.

 

The state has allocated financial assistance through the State Budget/Regional Budget regulated in Government Regulation No. 1 of 2018, however, the proportion is still very limited; about 1.5% of the total state budget. Dependence on private funding sources and the party's internal elite makes cadres vulnerable to high political cost practices and contributes to the party's weak accountability and financial governance. Regulation-wise, financial arrangements for political parties are available but have not been effective in implementation. The main problems lie in the disproportionate allocation of public assistance, incomplete financial reporting mechanisms, and weak monitoring and sanctions instruments. Ideally, state assistance aims to strengthen party institutions and break the dominance of the oligarchs, but this has not been achieved.

 

As argued by Marcus Mietzner (2021), the non-functional party funding system contributes to the emergence of new parties controlled by big financiers, exacerbating the representation crisis. Therefore, the reform of political party financial regulations is an urgency for democracy. Political party reform should include political party financial reform. There is a need for fair allocation of assistance, transparent management, and strengthening supervision and sanctions, as part of efforts to encourage party institutionalization and strengthen democracy with integrity.

 

Facing changes in the Political Party and Election Law, the issue of party financial governance is important to encourage a more inclusive, accountable and responsive political system. As a contribution to these efforts, The Habibie Center facilitates an open and constructive dialogue space in response to these dynamics. Supported by Konrad-Adenauer-Stiftung (KAS) Indonesia and the Ministry of Home Affairs of the Republic of Indonesia, it will hold the fourth series of the Democracy Dialogue in 2025 entitled "Paying for Democracy: Realizing Transparency, Accountability, and Strong Funding for Political Parties" to encourage dialogue between stakeholders.

 

Democracy Dialogue Panelists:

1. Dr. Nihayatul Wafiroh, M.A

Deputy Chairman of Commission IX of the House of Representatives of the Republic of Indonesia

Chairman of the Central Board of the Nation Women, Partai Kebangkitan Bangsa

2. Drs. Syarmadani, M.Si

Director of Domestic Politics of the Ministry of Home Affairs

Directorate General of Politics and General Government, Ministry of Home Affairs

3. Prof. Firman Noor

Senior Associate Fellow of The Habibie Center and Political Researcher, Social Research and Innovation Agency

 

Moderator:

Delia Wildianti, M.I.P

Researcher at the Center for Political Studies, University of Indonesia

 

📍 Venue: The Habibie Center Building – South Jakarta