Prabowo's free meals programme saved from spending cuts
The budget efficiency plan is causing protests over job cuts at state broadcasters and scholarships freeze this year. The Ministry of Public Works faces the worst cuts. The government also froze funding for the construction of the new capital, Nusantara, pending parliamentary approval of the spending review plan.
Jakarta (AsiaNews) – Indonesia’s controversial budget efficiency plan is having a major impact on jobs and scholarship programmes.
President Prabowo Subianto's government has introduced drastic measures to rein in public spending, affecting key sectors, like state broadcasting, education and public works.
One of the most contested decisions concerns the planned mass layoffs of employees of Radio Republik Indonesia (RRI) and the TVRI national television network. Redundancies have been met with strong opposition from employees, who are concerned about their uncertain future.
Politician Erik Hermawan explained that the main goal of these measures is to optimise public spending, allowing the government to repay the foreign debt due this year and finance the president’s free school meal programme (Makan Bergizi Gratis).
“Priority programmes and activities are now under intense scrutiny across all ministries and state agencies,” Hermawan stated.
Among the most affected bodies is the Ministry of Religious Affairs (Kemenag RI), which will see a IDR 14 trillion cut from the initial budget of IDR 78 trillion.
Minister Nasaruddin Umar expressed concern about the impact of the cuts on Hajj pilgrimage services, interfaith dialogue initiatives and social tolerance programmes.
The Education Endowment Fund (LPDP) was also heavily penalised. The 2025 ministerial scholarship programme, intended to support civil servants pursuing postgraduate studies abroad, was officially halted, even though the application period was announced on 10 January. On 31 January, the Ministry of Finance confirmed the cancellation.
The Minister of Research, Higher Education, Science, and Technology, Satryo Soemantri Brodjonegoro, confirmed that his ministry will have to adapt to the new efficiency criteria. "We are committed to supporting the state’s budget efficiency programme," he said.
The ministry will experience a reduction of IDR 22.5 billion, making it the second hardest hit ministry after Public Works, which will face a cut of almost IDR 82 trillion.
The austerity measures will also impact the new capital Nusantara (IKN) in East Kalimantan.
Several parliamentarians have called for a funding freeze for the new city, launched by former President Joko Widodo, considering it a non-priority project.
A member of the House Budget Committee declared his support for the measure, saying that the transfer of the capital was not an urgent priority, and the decision to transfer could be delayed to 2028, Prabowo's last year in office.
The Minister of Public Works, Doddy Hanggodo, said that funding for new capital were frozen, pending parliamentary approval of the budget efficiency plan. “Funds will be released only if the efficiency plan is approved by Parliament,” he stated.
Presidential Spokesman Hasan Nasbi denied rumours that the project would stop permanently. “That’s not true. A budget freeze only means that the funds have not yet been disbursed,” he explained.
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