An independent policy audit has revealed that Indonesia’s flagship free nutritious meals program suffered an estimated Rp10.5 trillion in annual financial waste, according to findings released by the Jakarta-based think tank Center of Reform on Economics (CORE). The program, a signature initiative launched under President Prabowo Subianto to combat stunting and improve student nutrition, faces mounting fiscal scrutiny over procurement inefficiencies and distribution bottlenecks just months after rollout.

Financial Discrepancies in the National Meal Rollout

According to CORE Indonesia, the projected yearly loss stems primarily from inflated vendor pricing, centralized food supply chains that bypass local farmers, and high rates of food spoilage during transit. The free meal initiative, managed by the National Nutrition Agency (BGN), targets tens of millions of school children and pregnant women nationwide. However, researchers noted that rigid centralized kitchen models drove up logistics costs significantly compared to decentralized community-based catering approaches.

“The scale of the distribution network creates systemic vulnerabilities to overpricing and logistical loss,” said CORE senior economist Yusuf Rendy Manilet in the group’s evaluation report. The audit highlighted that regions outside Java experienced the highest rates of delivery inefficiencies, where remote geographic conditions exacerbated meal spoilage before reaching classrooms.

National Nutrition Agency Response and Policy Adjustments

In response to the financial loss estimates, National Nutrition Agency Head Dadan Hindayana stated that the agency is actively refining its operational guidelines to plug budgetary leaks. Speaking to reporters in Jakarta, Hindayana maintained that the administration remains committed to scaling up the program while tightening oversight on third-party vendors and regional kitchen operators.

“We take every evaluation seriously and are integrating stricter audit mechanisms at the kitchen level,” Hindayana said, noting that regional supply chains are shifting toward sourcing ingredients directly from local agricultural cooperatives to cut out middlemen.

Implications for Indonesia’s State Budget

The estimated Rp10.5 trillion waste represents a notable fraction of the initial budget allocated for the nationwide nutritional rollout, sparking debate among lawmakers in the House of Representatives (DPR). Members of the budget committee have called for quarterly transparency reports from the National Nutrition Agency to ensure taxpayer funds directly benefit school children rather than absorbing administrative inefficiencies.

Fiscal watchdogs emphasize that as the program scales toward reaching its full target demographic, addressing these supply chain vulnerabilities will determine whether the massive social welfare expenditure remains sustainable within the state budget.