BI Supports Free Lunch Programs As Long As It Doesn't Create Instability

Senior Deputy Governor of Bank Indonesia Destry Damayanti at Peking University on Friday (8/3/2024) (ANTARA/Desca Lidya Natalia)

JAKARTA - Senior Deputy Governor of Bank Indonesia Destry Damayanti said BI supports the Free Lunch Program as long as it does not create financial instability.

"Bank Indonesia is an independent institution and the Free Lunch Program is a new government program, so as long as the program does not create instability in finance, Bank Indonesia supports it," said Destry when answering questions from public lecturers "Synergy and Innovation for Indonesia's Economic Resilience and Awakening" at Peking University Beijing, Friday (9/3) as reported by ANTARA.

One of the public lecturers, Chen, asked about the Free Lunch Program which was the mainstay of presidential and vice presidential candidates Prabowo-Gibran when he ran for the 2024 presidential election.

"Especially after COVID-19 the gap is getting higher so that the government also disburses social assistance in the form of money or goods, and the free lunch program provides assistance in the form of food for future generations of investments," added Destry.

This program is expected to cost up to IDR 460 trillion with a target of 82.9 million school children throughout Indonesia to help in overcoming malnutrition.

"So as far as this program is still within budget limits, BI supports it as long as it is still in the 'budget contract'," said Destry.

Destry said there has been no specific coordination with the new government for Bank Indonesia's future policies.

"I think whoever wins the key is policy sustainability," continued Destry.

Previously, the Head of the World Bank Representative for Indonesia and Timor-Leste Satu Kahkonen assessed that the Free Lunch Program needed to be carefully planned, especially in the budget aspect.

According to him, the government needs to first determine the exact form and target of the program, then compare it with the current resources.

The Free Lunch and Milk Program is a proposal from the presidential and vice presidential candidate pair number 2, Prabowo Subianto-Gibran Rakabuming Raka.

In the vision and mission document, the candidate pair explains that the Free Lunch Program aims to overcome the problem of tengkes (stunting) and will target pre-school students, elementary schools (SD), junior high schools (SMP), high schools (SMA), and Islamic boarding schools.

Nutrition assistance will also be given to pregnant women and toddlers throughout Indonesia to improve health and help the family's economy.

The program targets more than 80 million beneficiaries with 100 percent coverage by 2029.

The details of the Free Lunch and Milk Program have been discussed in the discussion of Macroeconomic Policy and the Principles of Fiscal Policy (KEM-PPKF) 2025.

The preparation of the 2025 State Budget is the last during the administration of President Joko Widodo (Jokowi), while the implementation of the 2025 State Budget will be carried out by the next government.