Saturday, February 15, 2025

Economists warn of challenges, implications of free nutritional meals policy

Reading Time: 2 minutes
Gusty da Costa

Journalist

Editor

Interview

The Free Nutritious Meals (MBG) program, a major initiative by the Prabowo Subianto-Gibran Rakabumung Raka administration, has drawn concerns from economists and policymakers over its financial sustainability and implementation challenges.

Economist Wijayanto Samirin warned that the MBG program could strain Indonesia’s budget.

“Nearly US$32 billion per year will be allocated for the Free Nutritious Meals program, despite ongoing fiscal constraints,” Samirin said as quoted in a statement on Thursday, February 13, 2025.

The program’s budget has surged from US$4.5 billion to $10.8 billion, leading to budget cuts in health, education, and infrastructure.

“The government must be cautious, as the public will become highly critical if MBG is not properly executed,” Samirin said.

He reminded the government to ensure sustainability of the program, while citong that once the MBG program is implemented, it cannot be reversed without severe public backlash.

“If the [meals] composition is reduced or adjustments are made, citizens will protest,” he said.

Economic, implementation challenges

Didik J. Rachbini, Rector of Paramadina University, on the other hand warned of potential flaws in MBG’s execution.

“Although fulfilling a campaign promise is necessary, managing a supply chain for millions of children is a complex task,” he noted.

A key issue is rent-seeking behavior, with concerns that large businesses may monopolize the program benefits, while sidelining small food vendors.

“If Prabowo prioritizes remote and malnourished regions first, the program could be more effective,” Rachbini said.

Nutritional, psychological concerns

Meanwhile, Fatchiah E. Kertamuda, Vice Rector of Paramadina University, raised concerns about MBG’s nutritional adequacy for different age groups.

“Has the Nutrition Fulfillment Service Unit (SPPG) been fully established and prepared to operate nationwide?” she asked.

She emphasized the need for strong coordination between central and local governments, as well as schools and communities.

“Is a proper monitoring and evaluation system in place?” she said, while warning that improper execution could impact children’s mental and physical development.

With these concerns in mind, experts asks the Prabowo administration to refine its strategy, ensuring the program’s long-term sustainability and effectiveness while maintaining fiscal responsibility.

Gusty da Costa

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

Inpex Corp, Japan’s largest oil and gas exploration company is targeting a Final Investment Decision for its Abadi liquefied natural gas (LNG) project in Indonesia by 2027.
Minister of Finance Sri Mulyani Indrawati has ensured that budget efficiency policy imposed on ministries and government institutions will not hinder the national economic growth target this year, but can instead encourage economic growth to exceed the target set at 5.2 percent.
Indonesian Army Chief of Staff General Maruli Simanjuntak has brushed aside the normative and legal questions on the appointment of Major General Novi Helmy Prasetya for the civilian post of State Logistics Agency (Bulog) chief, saying that the Army general was no longer an active member of the Indonesian Military (TNI) since being appointed as President Director of Bulog on February 7, 2025.
Residents living around the mining operations in Central Halmahera, North Maluku staged a protest at the coastal area of Lelilef Village, Weda Tengah District, on Thursday, February 13, 2025, expressing distrust towards the impact of the visit by Commission XII of the House of Representatives (DPR) to the Weda Bay Industrial Park (IWIP) last December.
A report by Transparency International reveals that Indonesia’s score in the 2024 Corruption Perceptions Index (CPI) remains at 37, placing it among countries struggling with significant corruption issues.
PT Freeport Indonesia (PTFI) is accelerating the process of repairing smelter facilities by installing replacement equipment at the Java Integrated Industrial and Ports Estate (JIIPE), Gresik, East Java.