Indonesia Allocates $19.9 Billion for Free Meal Rollout This Year
Jakarta. President Prabowo Subianto’s ambitious meal rollout is getting a massive annual budget allocation of Rp 335 trillion, or approximately $19.9 billion, this year.
Senior minister Airlangga Hartarto recently said that the Rp 335 trillion would help “secure the program”, while adding that the meal rollout aimed to feed 82 million individuals within 2026. The government is also banking on this program to spur the economy as countless public kitchens — also known by their acronym SPPG — take part in preparing the meals meant to feed schoolkids, pregnant mothers, and toddlers.
“This SPPG kitchen system is extraordinary. Payments are made upfront, so it enables the kitchens to easily produce the meals and keep track of their cashflows. This even allows them to set up more kitchens,” Airlangga told a conference in Jakarta on Tuesday, as reported by the state news agency Antara.
He went on to say that about Rp 80 trillion out of the Rp 335 trillion budget would be distributed quarterly to the grassroots level.
“This will certainly have an impact on economic growth,” Airlangga said, while citing increased consumption, production, and job creation as some of the effects.
Estimates showed that the program could create jobs for up to 3 million people. This aligns with the rule of thumb that every one percent increase to the economic growth can can create around 400,000 new jobs. The free meal program also has the potential to boost economic growth to up to 7%. Assuming half of this potential is realized, this program could still contribute an additional 3% to the economy this year, according to Airlangga.
"This will be able to leverage economic growth in line with the government's target," he stated.
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