Political parties in Indonesia receive regular funding annually; however, it is only reserved for political parties which hold seats in parliament. Its allocation is based on the amount of total votes received in the last election. Funds are received from the government at the national, provincial and district/city level. It has been provided by law that the public funding received by political parties should be allocated for the political education of party members and of the citizens. The use of public funds requires political parties to report their finances regularly, particularly in relation to election campaigns; which must be made public 10 days after the report on the audit result has been received.
Aside from the public funding, political parties may also receive donations from companies/corporation with a maximum limit of Rp 7,500,000,000.00 (seven billion and five hundred million rupiahs) per company/corporation within a year’s period. But no limit has been provided by law for donations of companies/corporations for candidates. While state-owned companies are banned from donating to political parties and candidates, no mention was made regarding companies which have partial government ownership or those having government contracts. Individuals who are members and non-members of political parties may also offer donations; but non-members are limited to donating an amount of Rp1, 000,000.00 (one billion rupiahs) per person within one year. Trade Unions are banned from donating to political parties but not to candidates.
Donations from contributors whose identities are not clear are not allowed, particularly when they are participating in the elections.
In relation to election matters, donations from individuals to political parties are limited to Rp 1,000,000,000; while companies are allowed up to Rp. 5,000,000,000. Donations of individuals to candidates is the same as those to political parties, while companies to candidates are allowed to contribute to a maximum limit of 500,000.000,000.
Indonesia does not set a limit on election spending but it focuses its regulation on the total amount contributed.
Political Finance Datebase. (n.d.). Retrieved from International IDEA: http://www.idea.int/political-finance/country.cfm?id=101
PDF : Campaign Finance in Indonesia (IFES: 2000)
PDF : Conjuring Zones of Insecurity: Post-Conflict Election Campaigning by Text Message in Aceh, Indonesia (EISF: 2014)
Link : Campaign finance, strategy and accountability (New Mandala: 2014)
Link : Limit set for campaign funds in local elections (The Jakarta Post: 2015)