JAKARTA: Indonesian President Prabowo Subianto warned he will not tolerate corruption after firing the head of his flagship US$15 billion free meals programme aimed at alleviating poverty and malnutrition.
"I do not want the people’s money to be stolen,” Prabowo said in a speech to thousands of officials and partners of the free meals programme at an event in West Java late Wednesday (June 3). "There are no exceptions.”
Prabowo this week fired Dadan Hindayana as the head of Indonesia’s nutrition agency and two deputies, and a day later Hindayana was named as a key suspect in a corruption probe. The scandal is the biggest to involve an entity created since Prabowo took power in late 2024 with a pledge to root out corruption, and the president spoke in unusually personal terms.
"I was saddened because these were people I trusted and entrusted with important responsibilities,” he said, recalling advice from his late father, economist and former trade minister Sumitro Djojohadikusumo, to always side with the people when faced with difficult decisions.
He said it was difficult to sign the dismissal orders and didn’t want to comment further on the individuals pending the investigations, or to be seen as influencing the legal process.
Hindayana’s representatives haven’t been reachable for comment on the allegations of graft at the National Nutrition Agency, which have added to a litany of bad news to afflict South-East Asia’s economy. He has been detained along with two ex-deputies.
The rupiah hit a record low of 18,000 against the dollar early Thursday and stocks are near a five-year low. Investor concerns including an ongoing MSCI Inc. review of investability; the risk of credit rating downgrades; and the potential breach of fiscal deficit limits due to expensive plans like the free meals program.
The latest probe tests Prabowo’s commitment to tackling graft while protecting a signature welfare programme that has become central to his economic agenda.
"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, said Jimmy Berlianto, senior researcher at the Center for Indonesian Policy Studies.
"Prabowo should use this case to reshape the programme design into one that centres on locally-driven governance connecting directly to the local food system and beneficiary targeting.”
Prabowo made it clear to the assembled officials that, after hearing reports of what was allegedly going on at the free meals agency, he personally ordered the probe, summoning the heads of the Financial and Development Supervisory Agency and the Financial Transaction Reports and Analysis Center, along with several other officials.
After underlining the importance of providing free meals to allow children to grow healthily and handle school, he asked if any of those in the audience represented "bad partners” in the programme.
"As no bad partners are willing to raise their hands, consider yourselves warned,” Prabowo said, noting he is willing to give the attorney general, the Corruption Eradication Commission, or KPK, and other entities "whatever resources you need” to eradicate graft. - Bloomberg.
