Indonesia trims its free-meals program to save money

Indonesia is scaling back one of President Prabowo Subianto's proudest projects, the free-meals program for schoolchildren, to save money as its budget comes under strain. As Nikkei Asia reports, the government is cutting parts of the program in the name of "efficiencies," and free meals on Saturdays are being stopped.

The pressure is coming from outside as much as inside. A war in the Middle East pushed up oil prices and hurt Indonesia's finances, since the country imports much of its fuel. To bring in more money, the government also plans to raise export duties, the taxes charged on goods sent abroad, on coal and nickel, two of Indonesia's biggest exports.

The retreat is notable because the free-meals plan, known as MBG, was a signature promise, meant to feed tens of millions of children and pregnant women every day. Trimming it, even at the edges, is a sign of how tight the budget has become. It also set up a tension that would grow through the year, between a costly flagship program and the money to pay for it.

Why it matters

If your child gets meals at school, changes like dropping Saturday servings hit home directly. The pullback also shows the government making hard trade-offs as fuel costs and a weak budget squeeze its plans. Watch whether the cuts go deeper, or whether the program is shielded while other spending gives way.