Indonesia weighs US$2b cut to Prabowo’s signature free meals programme

JAKARTA, June 25 — Indonesia is preparing to scale back President Prabowo Subianto’s flagship free meals programme, with officials weighing another budget cut of more than US$2 billion (RM8.2 billion) along with reductions in kitchens and beneficiaries, according to two sources familiar with the matter and an internal presentation.

The planned move marks one of the clearest indications yet of mounting fiscal and governance pressures on Prabowo’s most important and expensive campaign pledge, which has been central to concerns about Indonesia’s fiscal discipline.

Two sources familiar with the plans told Reuters the National Nutrition Agency (NNA), which runs the programme, is targeting a reduction of at least 15 per cent from its 268 trillion rupiah (US$16 billion) budget this year — equivalent to about 40 trillion rupiah — after identifying inefficiencies.

One of them said the cut could be 50 trillion rupiah.

The two sources said the exact reduction was not known. But a third said an internal review could cut recipients to 49 million from 62.5 million, though the assessment is ongoing and subject to change.

The sources spoke on condition of anonymity as the matter was still private.

A spokesman for the Ministry of Finance told Reuters in a written reply today that it is “awaiting a budget sharpening plan” for the programme from the NNA, and will coordinate on any implementation.

The NNA and the president’s office did not immediately respond to Reuters’ requests for comment.

The details of the rollback plan, including the cut in recipients and internal discussions, have not been reported before. — Reuters