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View all search resultsFree meal program’s fiscal, monetary impact “limited”: INDEF
The Jakarta-based think tank found the program would lift GDP by just 0.15-0.17 percent at its peak in the early 2040s before the impact gradually wanes.
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A student prays before lunch on Jan. 6, 2025, the first day of the government’s free nutritious meal program at State Senior High School 11 in East Jakarta. (AFP/Aditya Irawan)
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resident Prabowo Subianto’s flagship free nutritious meal program has a limited impact on fiscal and monetary conditions and only a modest effect on economic growth, according to a new study by the Institute for Development of Economics and Finance (Indef).
The Jakarta-based think tank said the program should be repositioned as a long-term human capital investment rather than as a tool to quickly lift economic growth.
“The free meals program has a positive macroeconomic impact, but the gains are very small and transitional,” said M. Rizal Taufikurahman, head of Indef's macroeconomics and finance center, at an online briefing on Thursday.
“The main benefit is reflected in increased intergenerational welfare and household consumption, while the impact on output and fiscal indicators is temporary.”
Read also: Prabowo claims 8% growth is possible through free meals program
Indef’s assessment, based on an “overlapping generations” model used to evaluate long-term fiscal policy, found the program’s contribution to gross domestic product would peak at a marginal 0.15-0.17 percent in the early 2040s before fading.
Rizal said the gains would help underpin Indonesia’s long-term development agenda as the country marches toward its 2045 centennial milestone.
