BUSINESS – Indonesia’s government has revised its budget for the flagship school and maternal free meals program, slashing funding from the original US$28 billion annual plan to approximately US$21 billion, according to a recent report by The Straits Times.
This decision arrives alongside an aggressive US$18.8 billion austerity initiative led by President Prabowo Subianto, aimed at reallocating resources toward key national priorities. Earlier this year, an order mandated budget cuts across government ministries—particularly targeting non-essential expenses such as office travel, air conditioning, and consultancy fees—to support critical social programs . As a result, the government has only managed to disburse about 2.6% (4.4 trillion rupiah, or roughly US $270 million) of the total allocated funding as of mid-June.
The reduced budget means the ambitious goal of reaching 82 million recipients—including students and expectant mothers—remains underfunded. Reports indicate that only around 4.9 million individuals have received meals through 1,716 catering units to date. Voices of concern have emerged from sectors such as education, with student protests branded “Dark Indonesia” challenging the decision to defund higher education and infrastructure programs in favor of the meals initiative. One student activist remarked, “What the public needs is education and healthcare … we need proper education to get proper jobs”.
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Economic experts warn that while redistributing budget to vital social schemes is necessary, the depth of cuts may threaten foundational services and infrastructure. Kevin O’Rourke of Reformasi Information Services stated, “While Prabowo has amassed formidable support budget cuts that impinge on existing programs will likely prove contentious”. Similarly, University of Indonesia economist Jahen Rezki cautioned that excessive austerity could undermine economic stability.
The government’s austerity strategy extends across all levels, exemplified by the Economic Affairs Ministry turning off lights to signal budget discipline, while the Public Works Ministry faced up to 80% reductions, impacting road and bridge maintenance. With the revised free meals funding and broader cuts, authorities are also contemplating supplementary funding of approximately 100 trillion rupiah to fully execute the program—raising concerns about fiscal sustainability and national debt accumulation.
As public scrutiny intensifies, the effectiveness of Indonesia’s strategic budget restructuring hinges on balancing immediate social benefits with long-term economic priorities, including education, infrastructure, and debt management.
Source: The Straits Time
