Indonesia’s free meals drive leaves remote kitchen investors deep in debt
Initial guidelines promised investors returns of 120% above upfront costs over four years, but around 700 government-contracted remote kitchens are still awaiting repayment.
Remote Indonesian villages are grappling with significant financial burdens as they struggle to repay investors in a government initiative to provide free meals for schoolchildren and pregnant women. The Free Nutritious Meal Program (MBG) has faced numerous challenges since its launch last year, including poor governance, supply chain issues, and food poisoning outbreaks, leading to idle kitchens and investors owing millions of dollars.
Sigit Buludawa, a 34-year-old lawyer and investor in Torosiaje, a remote fishing village on Sulawesi island, built a kitchen in November using his own money and loans from unlicensed lenders. He now faces mounting debts and no clarity on when he might receive reimbursement, leaving his idle kitchen and equipment at risk.
The programme, which aims to serve 83 million Indonesians, took off at a high with plans for nearly 28,000 kitchens, boasting up to 100% returns on investment. However, the government has since cut the budget and restructured payments, leading to delays and confusion.
Struggling kitchen owners have taken drastic measures to protect their investments, with some even resorting to protests in Jakarta. The National Nutrition Agency (NNA) overseeing the programme has been forced to sack its head and undergo a series of management changes, leaving uncertainty over its future direction and the fate of the kitchens and investors involved.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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