Likely new Indonesian president aims to introduce free school meals
The feeding plan for schoolchildren will cost up to $7.68bn in its first year
21 February 2024 - 14:39
by Agency Staff
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Jakarta — A plan by Indonesia’s likely new president Prabowo Subianto to provide free school lunches and milk will cost up to 120-trillion rupiah ($7.68bn) in its first year, his team said on Wednesday.
Prabowo has declared victory in last week’s presidential election in the world’s third-biggest democracy, after quick ballot counts by independent pollsters in sample polling stations showed he had won nearly 60% of votes.
The election commission is due to announce the formal result by March 20 and a new government will take office in October.
Some analysts have warned the cost for Prabowo’s signature campaign pledge, free meals for 82.9-million children, is high and could undermine Indonesia's track record of fiscal discipline.
His team has said the programme would cost 450-trillion rupiah ($28.79bn) when it reached its final stage in 2029.
During Prabowo’s first year, however, the programme would require between 100-trillion to 120-trillion rupiah in expenditure to provide well-balanced and healthy meals, said Budiman Sudjatmiko, a senior member of Prabowo’s team of experts, without providing further detail.
Prabowo’s team has estimated that at the final stage, the programme per year would require 6.7-million tonnes of rice, 1.2-million tonnes of chicken, 500,000 tonnes of beef, 1-million tonnes of fish, 4-million kilolitres of milk as well as vegetables and fruits, Budiman said.
The current design of the programme includes collaboration with farmers co-operatives and small businesses, which Budiman said could cut the programme’s total cost further. Investors are paying close attention to the details of the programme.
Bank Indonesia governor Perry Warjiyo was asked about risks from expansionary fiscal plans by the incoming government during Wednesday’s regular investor conference call, which the central bank hosted after deciding to keep interest rates unchanged in its policy meeting.
Warjiyo said laws banning Indonesia’s annual fiscal deficit from exceeding 3% of GDP would ensure prudent fiscal policy management.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Likely new Indonesian president aims to introduce free school meals
The feeding plan for schoolchildren will cost up to $7.68bn in its first year
Jakarta — A plan by Indonesia’s likely new president Prabowo Subianto to provide free school lunches and milk will cost up to 120-trillion rupiah ($7.68bn) in its first year, his team said on Wednesday.
Prabowo has declared victory in last week’s presidential election in the world’s third-biggest democracy, after quick ballot counts by independent pollsters in sample polling stations showed he had won nearly 60% of votes.
The election commission is due to announce the formal result by March 20 and a new government will take office in October.
Some analysts have warned the cost for Prabowo’s signature campaign pledge, free meals for 82.9-million children, is high and could undermine Indonesia's track record of fiscal discipline.
His team has said the programme would cost 450-trillion rupiah ($28.79bn) when it reached its final stage in 2029.
During Prabowo’s first year, however, the programme would require between 100-trillion to 120-trillion rupiah in expenditure to provide well-balanced and healthy meals, said Budiman Sudjatmiko, a senior member of Prabowo’s team of experts, without providing further detail.
Prabowo’s team has estimated that at the final stage, the programme per year would require 6.7-million tonnes of rice, 1.2-million tonnes of chicken, 500,000 tonnes of beef, 1-million tonnes of fish, 4-million kilolitres of milk as well as vegetables and fruits, Budiman said.
The current design of the programme includes collaboration with farmers co-operatives and small businesses, which Budiman said could cut the programme’s total cost further. Investors are paying close attention to the details of the programme.
Bank Indonesia governor Perry Warjiyo was asked about risks from expansionary fiscal plans by the incoming government during Wednesday’s regular investor conference call, which the central bank hosted after deciding to keep interest rates unchanged in its policy meeting.
Warjiyo said laws banning Indonesia’s annual fiscal deficit from exceeding 3% of GDP would ensure prudent fiscal policy management.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.