Indonesia's Economy
Free Meals and Fiscal Rules
How Indonesia's 2025 free nutritious meals programme aims to feed tens of millions of children, its huge costs, and Indonesia's 3 percent deficit rule.
President Prabowo Subianto launched a free nutritious meals programme in January 2025.
The plan
- Free meals for schoolchildren, pregnant women and young children.
- Target: tens of millions of beneficiaries.
- Budget of tens of trillions of rupiah, rising sharply.
Goals
- Reduce stunting, which affects a large share of Indonesian children.
- Support local farmers and kitchens.
Concerns
- Cost strains the budget.
- Food safety incidents: some students fell ill.
- Implementation capacity.
The 3 percent rule
Indonesia has a legal deficit cap of 3 percent of GDP, adopted after the 1998 crisis, giving it a reputation for fiscal discipline. Big programmes test this rule.
Comparison with India
India’s PM POSHAN (mid-day meal) scheme has fed schoolchildren for decades.
The school kitchen
A central kitchen in Java prepares thousands of meals of rice, vegetables and eggs, delivered daily to nearby schools.
Thinking big programmes don't face fiscal limits
Indonesia's 3 percent deficit cap constrains spending.
Key takeaways
- Indonesia launched free nutritious meals in January 2025.
- It aims to reduce stunting.
- Costs and food safety are concerns.
- A 3 percent deficit cap constrains the budget.
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