Indonesia’s Free School Lunch Plan: Boost or Burden?

Indonesia’s expected new president, Prabowo Subianto, is proposing a large-scale program to provide free lunches for students and pregnant women. This ambitious plan, estimated to cost $28.67 billion annually, has sparked debate about its potential impact on the economy.

Proponents, like Prabowo’s party official Rahayu Saraswati Djojohadikusumo, believe the program will be a boon. They say it will improve children’s health and education, leading to a 2.6% increase in economic growth by 2029. Additionally, the program would create millions of jobs through the construction of kitchens and sourcing of ingredients from local farms.

However, economists and rating agencies are concerned. They worry that Indonesia’s budget might not be able to handle the program’s cost, potentially jeopardizing the country’s fiscal responsibility. This concern is heightened by Prabowo’s own pledge to maintain fiscal prudence.

Djojohadikusumo acknowledges these concerns and suggests alternative funding options. These include reducing state spending on non-essential infrastructure projects and reallocating funds from existing welfare programs.

While Prabowo has declared victory in the recent election, official results won’t be announced until March 20th. If confirmed as president, Prabowo will take office in October. The fate of this free school lunch program, and its potential impact on Indonesia’s economy, remains to be seen.