Private investors face mounting debts and idle kitchens as reimbursement problems hit Prabowo’s flagship nutrition program.
Indonesia’s ambitious Free Nutritious Meals program was designed to improve nutrition for millions, but in remote communities, some of the private investors recruited to build its kitchens say the initiative has left them facing severe financial losses and uncertain prospects.
Hundreds of Remote Kitchens Affected
More than 1,500 kitchens were built by investors in remote areas after they were encouraged to participate in President Prabowo Subianto’s Free Nutritious Meals, or MBG, program, according to Reuters. Investors expected reimbursement for construction costs and potential returns, but hundreds have encountered uncertainty as payment arrangements and program requirements changed.
Some Investors Borrowed Heavily
The financial consequences have been particularly serious for operators who borrowed money to establish kitchens. In Torosiaje, Gorontalo, investor Sigit Buludawa spent about US$100,000 on a facility but had yet to receive reimbursement, Reuters reported. Some investors elsewhere reportedly turned to high-cost informal lenders, leaving them exposed to mounting debts when expected payments failed to materialize.
Budget Cuts Add to Uncertainty
The difficulties come as the government has substantially reduced the MBG program’s 2026 budget. Initially allocated Rp335 trillion, funding was later reduced to Rp229 trillion, with officials signaling that further efficiency measures remained possible. The program originally targeted 83 million recipients, including schoolchildren and pregnant women.
Some Kitchens Have Guaranteed Repayment
Not every operator faces the same situation. Reuters reported that about 700 kitchens have contracts guaranteeing repayment, while others remain caught in inspection and administrative processes. Some operators also faced difficulties accessing documentation after the National Nutrition Agency’s online portal was shut down, adding uncertainty for investors seeking recognition and reimbursement.
Program Already Faces Wider Problems
The investor dispute adds to broader challenges surrounding MBG since its launch in January 2025. The program has faced food safety incidents, logistical problems and governance concerns, while authorities recently permanently suspended 833 kitchens for failing to meet requirements or violating standards. The National Nutrition Agency has also undergone leadership changes amid a corruption investigation.
Indonesia’s free meals program remains one of President Prabowo’s most ambitious policies, but the experiences of indebted kitchen investors expose significant weaknesses in its implementation. Ensuring clear contracts, predictable reimbursement and stronger governance will be essential if the government wants to expand nutrition services without transferring excessive financial risk to local partners.
Sources: Asia One (2026) , Reuters (2026)
Keywords: Indonesia Free Meals, MBG Program, Kitchen Investors, Prabowo Subianto, National Nutrition Agency, Investor Debt
