Indonesia's Bold Free Lunch Initiative Amid Economic Uncertainty

Thu Jul 17 2025 13:26:52 GMT+0300 (Eastern European Summer Time)
Indonesia's Bold Free Lunch Initiative Amid Economic Uncertainty

As Indonesia grapples with rising unemployment, President Prabowo Subianto's promise of free school lunches faces scrutiny and criticism from economic analysts.


The Indonesian government is pushing forward with a free school lunch program while facing economic challenges, including an anticipated rise in unemployment. Critics argue that the administration's focus on social programs may overlook the pressing economic distress experienced by citizens.

In Jakarta, where economic struggles are palpable, Nina Megayanti's life changed drastically as she faced unemployment after being laid off from her marketing position. Her challenges reflect a broader crisis affecting millions across Indonesia. The International Monetary Fund has warned of an impending increase in unemployment rates, indicating that the country may soon have the second-highest rate in Asia, trailing only China.

Despite these dire predictions, President Prabowo Subianto maintains that the economy is thriving. He points to an annual growth rate of nearly 5% as a sign of resilience. However, since taking office, he has made significant financial decisions to fund his flagship initiatives, including a nationwide free school lunch program and affordable housing by rerouting billions from government budgets. This austerity has led to considerable cuts across various sectors, including public works and education, and has resulted in the termination of thousands of government contractor positions.

Critics, including economists like Awalil Rizky from the Bright Institute, have voiced concerns over the government's optimistic view of the economy, suggesting that employment data reflect a much more troubling reality. The IMF's latest projections have further underscored this sentiment, estimating a rise in Indonesia’s unemployment rate to 5% from the previous year, as well as a revised economic growth outlook for 2025.

President Prabowo’s plans for free meals and housing are seen by some as noble investments in the country’s future, but many fear such measures may ultimately fail to address the immediate hardships faced by the Indonesian populace amidst rising financial strain.

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