Indonesia faces ‘life-threatening’ consequences of halt to US foreign aid

The funding freeze leaves critical health and humanitarian programmes in limbo, leading many to ask who can fill the support gap

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USAID health worker performs a routine health assessment before administering the COVID-19 vaccine to the patient at a mass vaccination clinic in Indonesia in 2021. Photo: USAID

Published: 10:30am, 28 Feb 2025

The effects of Washington’s freeze on nearly all US foreign aid are being felt acutely in Indonesia, with warnings that the impact on critical health and humanitarian programmes could prove “life-threatening” coming amid questions about who will fill the massive funding gap.

The US Agency for International Development (USAID) – which had almost all of its foreign aid funds frozen for 90 days shortly after US President Donald Trump was inaugurated on January 20 – supported a range of initiatives in Indonesia, including those related to health, environmental conservation, poverty reduction, disaster management, governance and democracy, and many others.

USAID had disbursed more than US$800 million to Indonesia since 2020, including US$153 million in 2023, according to data from the US Embassy in Jakarta.

Some of the health programmes funded by the agency include those dedicated to combat tuberculosis, HIV/Aids, stunting, providing vaccines, and improving access to primary healthcare.

Local officials have tried to downplay the impact of the funding freeze, saying Indonesia is resilient and has other sources of assistance.

“Of course there is an impact from [the USAID freeze], but we still have other donor countries that can be used as alternatives,” Health Minister Budi Sadikin told reporters on February 6.