Jakarta. Indonesia does not plan on stopping its multibillion-dollar free meal rollout despite Fitch’s concern that feeding tens of millions of people can strain fiscal health.

Chief Economic Minister Airlangga Hartarto said on Thursday that Indonesia had only “just started” the program, with the first trays of meals only making their way to students in January 2025.

“And so, we shall continue its rollout,” Airlangga told reporters in Jakarta.

In its latest assessment, Fitch had cut Indonesia’s credit rating outlook from stable to negative. The credit rating agency maintained Indonesia’s “BBB” rating, which is the second-lowest investment grade rating.  The downgrade followed a similar review by Moody’s. Fitch reported that the free lunches were some of the factors that had cost Indonesia its stable outlook.

Airlangga claimed that studies had shown a massive and well-implemented school-feeding program could “deliver $7 returns in every $1 invested”. He went on to say that other countries are already serving up government-aided lunches. This includes the US, which lets students from low-income families have school lunches at no cost or subsidized price. The Indonesian government also sees the initiative as a long-term investment.

“We can’t get rid of our long-term [goals] just for something short-term,” Airlangga said.

Fitch forecasted that Indonesia’s budget shortfall would reach 2.9% of gross domestic product (GDP), hence beating the government’s 2.68% target. The government’s efforts to propel growth and reduce lingering tensions following August 2025 nationwide protests will likely lead to higher social spending, including the free meal whose price tag stands at 1.3% of Indonesian GDP for 2025-2029.

For this year alone, Indonesia is allocating Rp 335 trillion ($19.8 billion) to the free meal program. As of Feb. 21, the government has spent about 10.9% of that cash, or around Rp 36.6 trillion ($2.2 billion). The meals are intended for Indonesian schoolchildren, pregnant mothers, and toddlers. The government is mulling expanding its reach to the elderly. The program had helped President Prabowo Subianto rise to victory in the 2024 three-horse presidential race. 

At the recent Davos forum, Prabowo claimed that the number of bellies filled by the program was on track to “surpass McDonald’s”. The retired army general wants to distribute 82.9 million daily meals within this year, topping the American fast food giant, which feeds 68 million people every day. Beyond making sure that kids do not go to class hungry, Prabowo is banking on this program for job creation.

“More than 61,000 micro, small, and medium enterprises, as well as cooperatives, are now part of this supply chain. We are creating more than 600,000 jobs just in the kitchens,” Prabowo said, when addressing Davos earlier this year.

This will more than double to 1.5 million direct jobs when the program reaches its peak, not to mention the additional economic boon with the involvement of vendors and suppliers.