Hundreds of investors say delayed reimbursements and changing payment terms have left kitchens idle and debts mounting.
JAKARTA, INDONESIA — WEB DESK: Indonesia’s ambitious free meals programme has left hundreds of private kitchen investors facing mounting debts after government reimbursements were delayed and payment arrangements were repeatedly changed, according to a Reuters investigation published Thursday.
The programme, championed by President Prabowo Subianto, aims to provide free meals to 83 million Indonesians, including schoolchildren as well as pregnant and breastfeeding women. To support the initiative, investors were encouraged to build kitchens, particularly in remote and underdeveloped areas.
But the financial burden has fallen heavily on some investors who borrowed money to finance construction.
Investors left waiting for reimbursement
Sigit Buludawa, a 34-year-old lawyer in the remote fishing village of Torosiaje in Gorontalo province, spent about 1.8 billion rupiah ($100,000) to build a kitchen on stilts above Tomini Bay.
Buludawa said he used his own money and loans from unlicensed lenders to finance the facility. Although the kitchen underwent government inspection in February, he said he has yet to receive reimbursement. His outstanding debt of about 1 billion rupiah ($55,000) has continued to accumulate interest.
Buludawa is among at least 400 investors who borrowed money to build more than 1,500 kitchens in remote areas, according to interviews, public documents and government contracts reviewed by Reuters.
Around 700 kitchens reportedly have official contracts guaranteeing repayment, while another 800 completed facilities are awaiting final government inspection.
Payment terms repeatedly changed
The original scheme offered investors full reimbursement and an additional return of at least 100% of their initial investment through incentives and rental payments over four years.
Government officials also told investors that payments would be made within 35 to 45 days following government appraisal.
However, payment arrangements subsequently changed.
In March, the National Nutrition Agency restructured the system so that 60% would be paid after construction, with the remainder released in two instalments after requirements were met. In May, the agency changed the system again, moving toward daily incentive payments spread over two years.
The changes created uncertainty for investors who had already taken on substantial loans.
Programme faces budget cuts and governance problems
The free meals initiative has also faced wider challenges, including supply-chain problems, reports of mass food poisoning, governance concerns and reductions in government spending.
The programme’s budget was initially set at 335 trillion rupiah for the year before being reduced to 268 trillion rupiah. It was later cut further to 229 trillion rupiah as authorities introduced efficiency measures.
The government also froze plans for 13,000 additional kitchens.
In June, authorities raided offices of the National Nutrition Agency. Its first head, Dadan Hindayana, was dismissed and arrested amid a corruption investigation. Following his arrest, several kitchen owners said they lost access to an online portal containing contracts, appointment letters and repayment account information.
Remote communities still waiting for meals
The financial problems have had consequences beyond the investors.
Torosiaje’s kitchen was intended to serve around 400 schoolchildren, as well as pregnant and breastfeeding women. Yet the facility has remained idle despite being equipped with stoves, refrigerators and serving trays.
In another remote village, Sandalan, agricultural produce collector Zaenuri Mustofa accumulated around 700 million rupiah in debt after building a kitchen and said he still owed contractors.
Residents meanwhile remain hopeful that the programme will eventually begin serving their children.
Questions over programme priorities
Education watchdog Ubaid Matraji said the difficulties highlighted weaknesses in the programme’s budget management and its approach to private-sector participation.
He also argued that resources had been concentrated in major cities such as Jakarta, where food access and nutrition levels are generally better, rather than in remote areas where the need may be greater.
The National Nutrition Agency did not respond to Reuters’ request for comment, according to the report.
The agency’s new chief, Sudaryono, has said remote areas and regions with high child-stunting rates will be prioritised, but investors are still waiting for details on how outstanding payments and unused kitchens will be addressed.
For the investors who borrowed heavily to build the facilities, the uncertainty has become a financial crisis of its own, while the communities the programme was designed to help continue waiting for regular access to free meals.
