Indonesia Diplomatic Grant Leadership

The International Development Cooperation Fund Institution (LDKPI), or Indonesian Agency for International Development (Indonesian AID), together with the Faculty of Social and Political Sciences at the University of North Sumatra (FISIP USU), held a talk show titled “Indonesian AID: Strengthening Economy, Deepening Diplomacy” on Tuesday, 2 September 2025. Conducted online via Zoom and streamed live through USU Media on YouTube, the event aimed to open public and academic dialogue about Indonesia’s role as an international grant donor. In the opening remarks, the Dean of FISIP USU, Dr. Hatta Ridho, said that students need to assess whether Indonesia is currently “worthy” of giving international grants not only in terms of budget but also in terms of impact, transparency, and swift diplomatic action. He called for grant policies to be more than diplomatic optics, insisting they deliver real benefits on the ground. 

Azhar Basyir, Head of the Legal and Institutional Relations Division at Indonesian AID, demonstrated that Indonesia’s roots in humanitarian diplomacy stretch back well before formal institutions were established: “In 1946, one year after independence, Indonesia already sent 300,000 tons of rice to India… But those aid efforts were sporadic and unorganized. Therefore, in 2019 Indonesian Aid was established to be more integrated and more strategic.” He also pointed out that aid is not always financial; material support and physical activities are included, such as vaccines and locally-produced biscuits, school renovations, and leadership training in the Pacific and Africa. Additionally: “It is important to note that these grants do not burden the annual state budget. Grants are given from the returns of the endowment fund investments that we manage.”

Prof. Drs. Heri Kusmanto, Secretary of the S3 Development Studies Program at FISIP USU, emphasized that foreign aid should not be mere charity but a political and economic instrument that also benefits Indonesia. He warned that lengthy bureaucratic processes can delay aid and reduce its effectiveness: “The main challenge is the lengthy bureaucracy, for example needing the approval of four ministers. As a result, aid can be delayed and lose its effectiveness. Therefore, mechanisms must be simplified.”

Public data supports that Indonesian AID has made significant achievements since its establishment. As of September 2024, Indonesian AID has distributed grants worth IDR 523.56 billion to 97 countries and foreign institutions through various grant programs, ranging from health, humanitarian, to training. Moreover, Prof. Heri reminded that academic evaluation is absolutely necessary so that the benefits of grants can be measured with precision, targeted correctly, and have meaningful impact for both recipients and Indonesia as the donor. This view responds to Azhar’s statement that humanitarian diplomacy yields mutual benefits, such as Indonesia’s shipment of oxygen concentrators to India during the COVID-19 pandemic and India’s response to Indonesia during the Delta wave. 

The talk show discussion also raised the issue of administrative mechanisms as a determining factor in the speed of international response. Students actively participated in the question and answer session, asking how the evaluation system works, how aid is implemented so that it is not delayed due to approvals from various parties, and how academics or researchers are involved in evaluating the impact of grants. Indonesia does have the capacity and intention to become an international donor, not only as a symbol of diplomacy but with tangible evidence. However, in order for Indonesia to be truly worthy in all aspects, focus needs to be directed towards effectiveness, transparency, and simplification of bureaucracy so that international momentum is not missed.

As a form of appreciation for active participation from students, the event concluded with the presentation of souvenirs to those involved in discussions and direct dialogues. The souvenirs symbolized that the input from the younger generation is valued and regarded as important by the organizers.