Prabowo's Free School Meal Plan Raises Investor Concerns in Indonesia

The President-elect's proposed spending initiatives prompt fears of fiscal instability and market reactions.

Prabowo Subianto's plan to provide free meals to schoolchildren is estimated to cost $4.35 billion in 2025.
Investors are concerned about potential fiscal risks and the stability of Indonesia's debt and currency markets.
The Indonesian rupiah has depreciated, and bond yields have risen amid fears of increased government spending.
Prabowo's administration aims to balance the budget by increasing fiscal revenue and improving tax compliance.
Uncertainty remains over the replacement of Finance Minister Sri Mulyani Indrawati, adding to market unease.