Prabowo Fires Free Meals Program Head Amid Graft Probe

President Prabowo Subianto has taken a firm stance against corruption, dismissing the head of his administration's ambitious $15 billion free meals program following a corruption probe. Dadan Hindayana, who led Indonesia's nutrition agency, along with two deputies, were removed from their positions this week.

Hindayana was subsequently named a key suspect in the ongoing investigation into alleged graft at the National Nutrition Agency. President Prabowo expressed personal sadness over the dismissals, stating, "I do not want the people’s money to be stolen. There are no exceptions." He recalled advice from his late father to always prioritize the people's interests.

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I do not want the people’s money to be stolen. There are no exceptions.

The scandal represents the most significant corruption case to involve an initiative launched since Prabowo took office in late 2024 with a pledge to eradicate corruption. The situation puts pressure on the president's commitment to tackling graft while simultaneously safeguarding a signature welfare program that is crucial to his economic policies.

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I was saddened because these were people I trusted and entrusted with important responsibilities.

Investor confidence in Indonesia has been shaken by the scandal, contributing to a litany of bad news for the Southeast Asian economy. The rupiah hit a record low against the dollar, and stock prices are near a five-year low. Concerns include potential credit rating downgrades and the risk of exceeding fiscal deficit limits due to costly programs like the free meals initiative.

President Prabowo personally ordered the probe after receiving reports of alleged wrongdoing. He summoned top officials from financial oversight bodies to investigate. The case is seen as a critical test for Prabowo, who must navigate the investigation while ensuring the program's integrity and effectiveness. Analysts suggest this case could lead to program design changes, potentially focusing more on local governance and food systems.

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Given the increasing pressure on Indonesia’s economic condition and fiscal capacity, I think we’re bound to see some further changes to the programme’s design.