Prabowo's free-meal plan stirs investor fears about Indonesia's finances

Students eat their meals during the trial of a free-lunch programme for students at a junior high school in Tangerang, on the outskirts of Jakarta, Indonesia, February 29, 2024. REUTERS/Stefanno Sulaiman/File photo

JAKARTA/SINGAPORE (Reuters) - Indonesia's President-elect Prabowo Subianto wants to give school children free meals, but the plan and his pledge to be 'daring' on spending have the country's debt and currency markets on edge.

Prabowo and his team have tried to distance themselves from any suggestions of fiscal profligacy, and to assure market participants the incoming government respects the legal debt limits that cap its budget deficit at 3% of economic output.