The Indonesian government is set to scale back President Prabowo Subianto’s flagship free school meals program, citing the need for fiscal 'efficiencies' as budgetary pressures intensify due to the ongoing war in the Middle East and rising oil prices [1]. Specifically, free school meals on Saturdays will be discontinued, marking a significant reduction in the initiative aimed at nourishing young Indonesians [1].
In addition to the rollback of the free meals program, Jakarta is expected to raise export duties on coal and nickel, two key commodities, as part of broader efforts to shore up government finances [1]. While no specific figures were provided regarding the scale of the export duty increases or the total reduction in the free meals program’s budget, officials have indicated that further belt-tightening measures are likely, including potential cuts to ministries' budgets [1].
The government emphasized that these changes are intended to ensure more efficient spending while still prioritizing key welfare programs [1]. The rollback and potential new export duties are seen as part of a broader strategy to preserve fiscal stability amid external shocks, which could have significant implications for Indonesia’s commodity markets and public sector spending in the coming months [1].
CONCLUSION
Indonesia’s decision to scale back its free school meals program and consider higher export duties on coal and nickel reflects mounting fiscal pressures driven by external factors such as the Middle East conflict and rising oil prices. These measures signal a shift toward tighter government spending and could impact both commodity markets and public sector budgets. Market participants should monitor further fiscal policy adjustments as Indonesia seeks to maintain stability.