Jakarta, The PRAKARSA – Ahead of the implementation of the 4th Financing for Development Conference (UN FfD4) on 30 June – 3 July 2025 in Seville, Spain — which will be the first meeting since 2015 — various civil society organizations in Indonesia are calling on the Indonesian Government to take a strategic role in encouraging reform of the global financial system that is fair, transparent, and pro-people.
UN FfD4 is the UN forum for developing policies for financing sustainable development. The conference is crucial amid the debt crisis, global fiscal imbalances and climate finance shortfalls, highlighting the need for a more inclusive and democratic international financial system, especially for developing countries.
Several civil society organizations concerned with Indonesia's state finance issues — including debt, taxes, and fair budgets — have come together to strengthen their collective voices in addressing the structural crisis that threatens sustainable development. Some of the civil society organizations include; Indonesia for Global Justice (IGJ), the People's Coalition for the Right to Water (KrUHA), the International NGO Forum on Indonesian Development (INFID), Publish What You Pay Indonesia (PWYP) Indonesia, the National Secretariat of the Indonesian Forum for Budget Transparency (Seknas FITRA) and The PRAKARSA.
We have committed to 1) Monitoring public debt policies so that they do not become a burden for future generations and remain in favor of people's welfare, 2) Encouraging progressive reform of global and national tax systems and reducing inequality, 3) reflecting public budget allocations that support the provision of basic people's rights and environmental preservation.
We also see the importance of the FfD4 momentum for the Indonesian government to:
- Pushing back the UN's role in the global financial architecture policy-making system. And encouraging the global community's spirit to focus on the situation. global south which reflects real challenges in global policy today with increasing criticism of development approaches that are seen as too Western-oriented, and often ignore local and historical contexts in the Global South.
- Actively support negotiations for the establishment of United Nations Framework Convention on Sovereign Debt or the UN Framework Convention on Sovereign Debt, as a real step to build a fair and transparent sovereign debt reconstruction mechanism under the auspices of the UN.
- Advocating for global tax justice through support for the establishment of United Nations Tax Convention or the UN Tax Convention which strengthens the position of developing countries and provides equal space for developing countries in the formulation of global tax policies, which have so far been dominated by exclusive forums such as the OECD.
- Ensure public budget by prioritizing productive public spending and ensuring allocation to meet sustainable development targets (SDGs) and the national climate agenda.
“The issue of debt, taxes and budget is not just about numbers. It is about people's sovereignty, social justice and the future of the earth,” [Komang Audina Permana Putri, Program Coordinator of Indonesia for Global Justice] emphasized. In addition, financial issues are not isolated risks but rather systemic threats to Indonesia's development.
We also emphasize that the momentum of UN FfD4 must be used to fight for structural improvements, not just empty commitments. We declare the Indonesian Government to side with the people and dare to push for change at the global level. It is time for Indonesia to take a strategic role in building a fair and sustainable financial future.
Therefore, Indonesia must stand with other developing countries to ensure that future debt crises are resolved with justice, not austerity. In addition, it is important to push for global tax reform as a concrete step to create fiscal justice globally and ensure that every country has the capacity to finance the sustainable development agenda.
Contact person:
- Komang Audina Permana Putri, Indonesia for Global Justice (IGJ), audina@igj.or.id
- Meliana Lumbantoruan – Publish What You Pay Indonesia (PWYP) Indonesia – meliana@pwypindonesia.org
- Sigit Karyadi Budiono, People's Coalition for the Right to Water (KRuHA), sigit@kruha.org
- Siska Barimbing, National Secretariat of the Indonesian Forum for Budget Transparency (Seknas FITRA), siska.bar1mb1ng@gmail.com
- Bona Tua Parlinggomon P. – International NGO Forum on Indonesian Development (INFID) – bona@infid.org
- Ema Kurnia Aminnisa – The PRAKARSA - eaminnisa@theprakarsa.org