Economic Struggles in Indonesia: A Balancing Act of Free Meals and Rising Unemployment

Thu Jul 03 2025 18:18:38 GMT+0300 (Eastern European Summer Time)
Economic Struggles in Indonesia: A Balancing Act of Free Meals and Rising Unemployment

As Indonesia faces economic challenges, President Prabowo Subianto's commitment to free meals for students is met with criticism regarding its timing and implications on the nation's finances.


Amid a slowing economy and rising unemployment in Indonesia, President Prabowo Subianto's initiative to provide free school lunches is under scrutiny. Critics argue that redirecting funds to this program might exacerbate existing economic issues, as more citizens face job losses.



In Indonesia, the promise of free meals for students by President Prabowo Subianto is viewed with skepticism as the nation grapples with a faltering economy and increasing unemployment rates. While the president considers the lunch program an investment in the future, many are questioning the timing of such initiatives amidst rising job losses.

Take Nina Megayanti, for instance, who once led a comfortable life in Jakarta, enjoying meals with friends and traveling frequently until she was laid off from her marketing role in 2023. With her savings dwindling and her housing deposit lost, she found herself reflecting the plight of millions in Indonesia who are facing similar hardships.

The International Monetary Fund (IMF) has signaled a troubling forecast, predicting that Indonesian unemployment could reach 5 percent this year, one of the highest levels in Asia, trailing only China. Despite this grim outlook, the government claims that the economy is performing well, citing a growth rate of approximately 5 percent.

Since taking office, President Subianto has made fulfilling campaign promises a priority. His administration has committed to a nationwide free school lunch initiative and the establishment of affordable housing, alongside the creation of a new sovereign wealth fund. However, achieving these ambitious goals has led to significant budget reallocations, including austerity measures that challenge other essential public services.

Critics, including economist Awalil Rizky from the Bright Institute in Jakarta, assert that the administration is missing the mark on economic priorities. Rizky indicated that the growing unemployment rates are a clear indicator of the underlying economic troubles that cannot be overlooked.

Recently, the government also revised its estimate for economic growth in 2025 downward from 5.2 to 5 percent, reinforcing concerns regarding the sustainability of the current approach. Tensions are palpable as the citizens await the impact of government policies on their daily lives amid broader economic uncertainties.

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