Indonesia Boosts School Meal Budget with 100 Trillion Rupiah Injection

Indonesia's government is significantly increasing its budget for a free school meals program by 100 trillion rupiah, aiming to boost economic growth. This expansion seeks to benefit 83 million citizens by year-end, though it raises concerns about potential impacts on the country's fiscal prudence.

Indonesia is injecting an additional 100 trillion rupiah into its free school meal program, a move projected to spur a nearly 2% rise in national economic growth. Initially catering to 17.5 million people at a cost of 71 trillion rupiah, the program's extension seeks to provide meals to 83 million people by the end of the year.

Finance concerns, however, shadow this ambitious venture. While President Prabowo Subianto's approval ratings have soared to 81% following the program's launch, financial markets worry about the debt incurred to fund this and its potential impact on Indonesia's fiscal stability. 

To counterbalance this financial burden, President Subianto has ordered government spending cuts amounting to 306.7 trillion rupiah, reallocating funds to support his flagship initiatives, including the construction of three million affordable homes annually, which will rely partially on investor funding and state-backed housing bonds with extended loan terms.

(With inputs from agencies.)