By: Deystia Ayesha Rae

On 5 January 2018, the Government of Republic of Indonesia has issued a Government
Regulation No. 1 of 2018 concerning Second Amendment of Government Regulation
No. 5 of 2009 concerning Financial Assistance for Political Parties (“GR 1/2018”)
which came into effect on the same day. In essence, GR 1/2018 introduces an increase
of financial assistance given to Political Parties annually based on the votes in House
of People’s Representative (Dewan Perwakilan Rakyat or “DPR”) and People’s
Regional Assembly (Dewan Perwakilan Rakyat Daerah or “DPRD”) elections.
The financial assistance under GR 1/2018 is granted to Political Parties which obtains
a seat in DPR and DPRD based on national votes count set by the General Elections
Commission (Komisi Pemilihan Umum or “KPU”). This financial assistance comes
from State Revenues and Expenditures Budget (Anggaran Pendapatan dan Belanja
Negara or “APBN”) and Regional Revenues and Expenditures Budget (Anggaran
Pendapatan dan Belanja Daerah or “APBD”).

Pursuant to Article 5 of GR 1/2018, the amount of financial assistance granted to
Central-level Political Parties which obtain seats in the DPR would be IDR 1,000 (one
thousand rupiah) per valid vote obtained from APBN. The amount of financial
assistance granted to Political Parties in a province which obtain seats in the DPRD
would be IDR 1,200 (one thousand two hundred rupiah) per votes, and for Political
Parties in a city or regency would be IDR 1,500 (one thousand five hundred rupiah)
obtained from APBD. While the previous regulations, Government Regulation No. 5 of
2009 and Government Regulation No. 83 of 2012, did not regulate the exact amount of
the financial assistance given to Political Parties. The said regulation only regulates
the formulation to determine the amount of financial assistance, which is based on the
calculation of the amount of financial assistance from APBN/APBD in the previous
year divided by the number of votes obtained from the elections of DPR/DPRD for the
Political Party which obtained seats in the previous period.
Pursuant to Article 9 of GR 1/2018, this financial assistance fund is prioritized to carry
out political education for members of Political Parties and society, this financial
assistance may also be used for the operations of the secretariat of Political Parties
which include: (i) general administration, (ii) subscription of electricity, water,
telephone, post services, and correspondence, (iii) data and archive maintenance; and
(iv) maintenance of office equipment.

The Political Parties are obliged to make an accountability report of financial receipts
and expenditures sourced from APBN or APBD annually to the Government after
being audited by the Audit Board of Republic of Indonesia (Badan Pemeriksa
Keuangan or “BPK”). Pursuant to Article 16 of GR 1/2018, Political Parties which
past the deadline or failed to submit the accountability report shall be liable to
administrative sanctions in the absence of financial assistance of APBN or APBD until
the accountability reports are reviewed by BPK.