Indonesia is preparing to scale back President Prabowo Subianto’s flagship free meals programme, with officials weighing a budget cut of more than $2 billion and reductions in both kitchens and beneficiaries. According to two sources and an internal presentation, the National Nutrition Agency (NNA) is targeting a reduction of at least 15% to address mounting fiscal and governance pressures.
The planned move represents a significant shift for the programme, which has been central to concerns regarding Indonesia’s fiscal discipline. Two sources familiar with the plans told Reuters that the NNA is targeting a reduction of at least 40 trillion rupiah ($2.2 billion) from its current 268 trillion rupiah budget this year.
Why is the Indonesian government scaling back the free meals programme?
The potential rollback follows the identification of inefficiencies and recent governance issues within the agency. One source stated that a second source identified a “great deal of unnecessary spending” following the arrest of the former head of the nutrition agency on charges of mismanagement and alleged corruption.
Fiscal constraints also play a role in the proposed changes. The programme’s allocation was previously reduced to 268 trillion rupiah in May as the government sought more fiscal room in the aftermath of the Iran war.
“Budget cuts are necessary so the government could see objectively which spendings are actually essential,” a source told Reuters.
How many recipients and kitchens will be affected?
An internal review could reduce the number of programme beneficiaries to 49 million from the current 62.5 million, though a third source noted the assessment is ongoing and subject to change. According to a presentation intended for parliament, recipients will be cut by tightening social and economic criteria.
The scale of the programme’s reduction is reflected in both budget and infrastructure targets:
- Budget: A reduction of at least 40 trillion rupiah is targeted, though one source suggested the cut could reach 50 trillion rupiah.
- Kitchens: The agency will temporarily halt the addition of over 13,000 new kitchens.
- Current Capacity: Of the more than 27,000 kitchens currently operating, a source stated only around 21,000 are actually needed.
What happens next for the programme?
A final decision on the rollback plan is expected to be agreed upon within the next few weeks, according to sources who have discussed the plan with a parliamentary commission. The Ministry of Finance told Reuters it is “awaiting a budget sharpening plan” from the NNA and will coordinate on any rollout.
The programme may also undergo a structural transformation. One source suggested the initiative requires a “total redesign” involving a less-centralized system, such as building school-based kitchens similar to models used in Japan or China to reduce spending.
Frequently Asked Questions
How many people might lose access to the free meals programme?
An internal review could potentially reduce the number of recipients to 49 million from 62.5 million, according to a third source.
What is the estimated budget reduction for the NNA?
The NNA is targeting a reduction of at least 15% from its 268 trillion rupiah budget, which is approximately 40 trillion rupiah, though one source indicated the cut could reach 50 trillion rupiah.
Why is the government reducing the programme’s scope?
Sources cited the need to address fiscal limitations, identified inefficiencies, and recent governance issues, including the arrest of the former head of the nutrition agency on corruption and mismanagement charges.
How will these budget changes affect the programme’s long-term success?
