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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Fact Check: Indonesia secures investments, not loans, for specific programs from South Korea and Japan

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • Claims circulating on social media allege Indonesia secured over Rp500 trillion in loans from South Korea and Japan for the Free Nutritious Meal (MBG) program and Village Cooperatives (KDMP).
  • Fact-checking reveals Indonesia has secured investment commitments totaling IDR 574 trillion from these countries, but they are designated for sectors like energy, industry, and oil/gas, not MBG or KDMP.
  • The photo accompanying the claims shows President Prabowo Subianto with South Korean President Lee Jae-myung, but the context is a condolence message, not a loan agreement for the specified programs.

Social media posts circulating since August 6, 2026, falsely claim that Indonesia has secured new loans totaling over Rp500 trillion from South Korea and Japan. These alleged funds are purportedly intended to finance the Free Nutritious Meal (MBG) program and the Red-and-White Village Cooperative (KDMP).

The narrative is often accompanied by a photograph of President Prabowo Subianto shaking hands with South Korean President Lee Jae-myung. Some posts also assert that Indonesia's total government debt has exceeded Rp15,000 trillion. However, fact-checking by Tempo has debunked these claims.

While Indonesia has indeed secured investment commitments amounting to IDR 574 trillion from South Korea and Japan, these funds are not earmarked for the MBG or KDMP programs. Investments from South Korea, totaling Rp173 trillion, are directed towards the energy and green transition sectors, industry, manufacturing, and the digital economy. Japanese investments, amounting to IDR 401 trillion, target the oil and gas sector, financial services, and creative industries.

The photograph used in the posts, showing President Prabowo with President Lee, actually depicts a moment of condolence. The image originated from a TikTok post by Kompas.com and captures President Lee offering condolences to President Prabowo regarding the deaths of three Indonesian soldiers in Lebanon due to an Israeli attack. This exchange occurred during Prabowo's visit to South Korea on April 1, 2026.

The Indonesian government funds the MBG program through the education sector budget, allocating Rp240 trillion for it in the 2027 State Budget. Financing for KDMP facilities in 2026 comes from bank loans extended to PT Agro Industri Nasional (Agrinas), with a ceiling of up to Rp3 billion per unit.

DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.