Free meals program potentially boosts aggregate demand: Minister

Jakarta (ANTARA) - National Development Planning Minister Rachmat Pambudy stated that the free nutritious meals program has the potential to increase the aggregate demand.

“Nutritious meals (program) has only been running for 3 months, and even in that short period of time, it has given hope. At least there is aggregate demand in areas where the program has been implemented,” Rachmat stated during a working meeting with Commission XI of the Indonesian House of Representatives in Jakarta on Tuesday (March 18).

He illustrated that the free meals program incurs a daily cost of only around Rp50 million per day to feed three thousand children. This translates to a potential additional economic turnover of around Rp1.5 billion.

This program could also contribute to increased regional funding. For instance, in a village in the Java region with around 9,000 to 30,000 students, village funds could rise from originally Rp1 billion to Rp6 billion per village.

“This is the theory that has been practised in several villages,” Rachmat stated.

Hence, he urged House members to oversee the free meals program's execution within their respective electoral districts to support its successful implementation.

The Ministry of National Development Planning is currently developing a dashboard to monitor the program's aggregate demand.

"The dashboard is to see the aggregate demand and management of the nutritional agency to ensure that the kitchen can really implement this program," Rachmat stated.

The government has agreed on a total budget of Rp71 trillion this year, with a total of 17 million recipients of the program.

The free meals program is expected to create jobs, boost farmers' incomes, and increase people's purchasing power, potentially contributing an additional 0.1 percentage points to annual economic growth.

In the 2024-2029 period, the government aims to serve 82 million recipients, including 44 million schoolchildren and 4 million pregnant women.

The program requires support from 48 thousand kitchens/service units across Indonesia, as well as annual carbohydrate and protein supplies of 12.7 million tons.