Luhut Says Prabowo's Free Meal Program Helps Push Economic Growth to 8%

TEMPO.CO, Jakarta - The Chairperson of the National Economic Council (DEN), Luhut Binsar Pandjaitan, expressed optimism that Indonesia’s economic growth could still reach 8 to 9 percent.

This is despite projections from international institutions such as the World Bank and the International Monetary Fund (IMF), which forecast Indonesia’s growth at 4.7 percent this year—a downward revision from the earlier estimate of 5.1 percent.

Luhut said that the projected 8 percent growth remains attainable due to programs introduced by President Prabowo Subianto. One example is the Free Nutritious Food (MBG) program, which has been allocated a budget of Rp171 trillion. He added that the budget for this program could increase to Rp300 trillion next year.

“This program can directly promote equitable distribution, thereby creating new economic nodes,” Luhut said when speaking to reporters at the International Conference on Infrastructure (ICI) 2025 at JCC Senayan on Thursday, June 12, 2025.

He emphasized that if implemented properly, the program could significantly contribute to economic growth. Luhut also noted that the DEN team tasked with overseeing the MBG program has reported encouraging progress. However, he stressed that the program must continue to be monitored collectively.

“If we remain consistent with this, in my opinion, the 8 to 9 percent figure for economic growth in 2028, 2029, and 2030 can still be achieved,” said Luhut.

Earlier, economist Achmad Nur Hidayat from UPN Veteran Jakarta urged the government to respond seriously to the latest economic projections issued by the IMF and the World Bank. “The IMF correction should be taken as a serious warning that our economic policies need to be reconstructed with a new foundation,” said Achmad in a written statement received by Tempo on Sunday, April 27, 2025.

Achmad argued that the slowdown in economic growth is not solely driven by external factors. While he acknowledged that the trade policies of U.S. President Donald Trump have had an impact, he said these are not the only cause.

As the founder of the Narasi Institute, Achmad proposed five new strategies to strengthen Indonesia’s economic performance. First, he said the government must implement smart protection for domestic industries by targeting import substitution and building an innovation ecosystem based on local technology.

Second, he called for a more selective and progressive fiscal approach. Instead of expanding traditional subsidies, the government should prioritize productivity-driven spending, including vocational education, support for micro, small, and medium enterprises, and incentives for high value-added manufacturing.

Third, Achmad recommended policies that support the middle class, noting that this group is both a driver of consumption and a source of economic stability.

Fourth, he urged the government to restructure long-term debt and reassess unproductive infrastructure projects. He advised shifting the focus toward essential public needs, such as transportation, sanitation, and renewable energy.

Fifth, Achmad stressed the importance of redesigning investment incentives with a clear focus on attracting investments that generate quality employment and enable technology transfer. He also recommended that the government strengthen oversight of speculative investments.

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