Indonesia Slashes Free Meals Program Budget Amid Cost Concerns

Indonesia plans to significantly cut its free-meals program budget by around 40 trillion rupiah ($2.2 billion) amid concerns about costs and governance. The budget reduction is intended to help maintain the fiscal deficit below 3% of GDP, with adjustments pending based on the National Nutrition Agency's recommendations.

Indonesia plans to trim its free-meals program budget, potentially by 40 trillion rupiah ($2.2 billion) this year, as the government grapples with cost and governance concerns.

Purbaya Yudhi Sadewa, the finance minister, confirmed discussions with the National Nutrition Agency, which oversees the program. Final budget figures will be communicated after consulting President Prabowo Subianto. 'Significant savings' are expected, Sadewa indicated, though the precise cut remains under deliberation.

The program, initially targeted to deliver meals to 83 million citizens, had its 2023 budget set at 335 trillion rupiah, marking a substantial expense. Currently, Jakarta considers further reductions amid fiscal pressures due to rising oil prices and a weakened rupiah.