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Indonesia places a $28bn bet on free school meals

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Indonesia places a bn bet on free school meals

This article is part of the FT’s Financial Literacy and Inclusion Campaign joint seasonal appeal with Magic Breakfast

Before dawn in the highlands of West Java, dozens of kitchen staff are hard at work making free meals for more than 3,000 schoolchildren in the Indonesian town of Warungkiara.

From 3am, as rain pours outside, employees arrive at a kitchen in a one-storey building to chop and cook hundreds of kilogrammes of fruit, vegetables, rice and eggs. From about 7am, when the town’s children start heading to schools, the kitchen is ready to begin distributing food to students.

Warungkiara’s kitchen is a pilot project. Thousands like it will be rolled out across the country beginning this month as part of President Prabowo Subianto’s flagship programme to provide free lunch for all school children and pregnant mothers. 

Fully implemented, it will be one of the world’s largest free meals programmes, reaching more than 82mn people at an estimated cost of $28bn a year.

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It is a sum expected to strain Indonesia’s already-stretched government finances. But Prabowo, who took office in October, has touted the programme as a solution to improve children’s nutrition and boost local economies — which he hopes will have a ripple effect on economic growth and development in the world’s fourth most-populous country.

“This is a long-term investment in human capital,” said Dadan Hindayana, head of the newly created national nutrition agency, which will oversee the free meals programme. 

“Children who have never seen balanced meals will get to enjoy [such meals] at least once a day, every day. It will impact their growth,” he told the Financial Times in an interview in Jakarta. 

Nasrudin, a field co-ordinator for the free nutritious meal programme © Mas Agung Wilis Yudha Baskoro/FT
Yuni Munggaranti stands in the kitchen, holding a tray with compartments containing various food items.
Yuni Munggaranti, a nutritionist working with the programme © Mas Agung Wilis Yudha Baskoro/FT

Dadan also said the programme would boost productivity across Indonesia as the government increases sourcing of food products.

That could help Prabowo meet his ambitious goal of boosting annual growth from 5 per cent to 8 per cent — though economists say other reforms and investments are also needed.

Prabowo promised the free lunches during his election campaign, but the pledge was dismissed by critics as a populist measure. However, others say there are real benefits, particularly for children’s health and academic performance.

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Stunting — impaired growth and development in children from poor nutrition and repeated infections — has been an issue in Indonesia for decades. Government data shows the prevalence of stunting dropped from 37 per cent in 2013 to 21.5 per cent in 2023, but it remains a problem with longer-term impact. 

The OECD says stunting can lead to lasting impairments to physical and cognitive abilities, as well as disadvantages for health, life expectancy, skills and jobs.

It says infant malnutrition has contributed to poor education performance in primary schools: in 2022 as in previous years, Indonesian students scored significantly worse than the OECD averages in mathematics, reading and science.

The free lunch programme, along with other efforts, “will better prepare children for learning and growing”, the OECD said in a report in November.

A worker in a test kitchen prepares meals by distributing a mixture, possibly scrambled eggs, into compartmentalised trays
The kitchen feeds about 3,000 students every day © Mas Agung Wilis Yudha Baskoro/FT

The pilot project at Warungkiara, a town of 66,000, got under way shortly before Prabowo won February’s presidential election, and illustrates the kind of social and economic impact that the government hopes to trigger. 

Run by a think-tank called Indonesia Food Security Review, which is advising the government on how to implement the programme nationally, it employs about 50 people including cooks, drivers and cleaners. It distributes meals to 20 schools, six days a week. A nutritionist helps design the meals.

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Pahmi Idris, the kitchen manager, said the pilot project had created local jobs and boosted income for staff who were previously housewives, unemployed or worked in the informal sector. All produce is sourced from local farmers and suppliers, Pahmi said.

“Locals who previously did not have income now work here,” he told the FT. Farmers, hawkers and small retailers in the town have seen their income double and farmers are expanding to meet the kitchen’s demand, he added. 

Fahmi Idris stands in a kitchen in Warungkiara Village
Kitchen manager Pahmi Idris: ‘Locals who previously did not have income now work here’ © Mas Agung Wilis Yudha Baskoro

Schools that receive the free meals also said they had seen an improvement in attendance.

“Over time, the absence rate has been decreasing. This also influences the learning process,” said Iswah Ismatullah, principal at the Himmatussalam Islamic high school, which has 109 students.

Primary school head Atmaja, who goes by one name, said some students take a portion of the free meals home to share with siblings or their parents, most of whom are farmers or do odd jobs. 

The Warungkiara kitchen is seen as the benchmark for the programme’s national rollout, but expansion across the vast archipelago of 17,000 islands will face many challenges.

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Indonesia will have to avoid the pitfalls seen in India, which runs the world’s largest free meals programme, catering to 118mn students. Indian government officials and others say the programme has been mismanaged in some places.

Setting up kitchens, sourcing food and distribution in some remote islands could also prove difficult. Dadan from the national nutrition agency said the government could rope in the police, military and non-governmental organisations to help. Indonesia plans to set up nearly 30,000 kitchens, each serving about 3,000 students, when the programme reaches full scale by 2027.

“This is a massive programme that will need the involvement of all parties,” he said.

Two young students smile and enjoy a free lunch
Students at Warungkiara have a free lunch of noodles and vegetables © Mas Agung Wilis Yudha Baskoro/FT

Another big hurdle is finance. An average meal is expected to cost Rp10,000 per day, and the total $28bn cost is expected to include setting up the kitchens and other operational costs.

Indonesia has budgeted Rp71tn ($4bn) for the first year of the programme, but expanding it will test Jakarta’s fiscal strength. Rating agencies say more borrowing could hurt the country’s credit rating.

“The gradual rollout of the free meal programme may add to some recent pressures on Indonesia’s government finances,” said Thomas Rookmaaker, head of Asia-Pacific sovereigns at Fitch Ratings.

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On a recent visit to China, Prabowo signed an agreement with Beijing to support funding for the programme, though the governments did not provide details. 

Any fiscal strains are a distant concern in Warungkiara. Eneng, who works in the pilot kitchen, said the programme had helped increase her family’s income.

“This (kitchen] really helps. The women around here previously did not have any income. Now that we’re working here, we can help our husbands and children,” she said, peeling garlic along with other women in preparation for the next day’s meals.

“As for our children, we are assured that they will have healthy meals. It gives parents peace of mind.”

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U.S. soldier charged with suspected Polymarket insider trading over Maduro raid

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U.S. soldier charged with suspected Polymarket insider trading over Maduro raid

Smoke rises from Port of La Guaira in Venezuela on Jan. 3, 2026 after U.S. forces seized the country’s president, Nicolas Maduro and his wife.

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Federal prosecutors on Thursday unsealed an indictment against a U.S. Army soldier, accusing him of using his insider knowledge of the clandestine military operation to capture Venezuelan leader Nicolás Maduro in January to reap more than $400,000 in profits on the popular prediction market site Polymarket.

The Justice Department says Gannon Ken Van Dyke, 38, who was stationed at Fort Bragg, in North Carolina, was part of the team that planned and carried out the predawn raid in Caracas earlier this year that resulted in the apprehension of Maduro.

The Department of Justice and the Commodity Futures Trading Commission filed the actions against Van Dyke, the first time U.S. officials have leveled criminal charges against someone over prediction market wagers.

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According to the indictment, Van Dyke now faces counts of wire fraud, commodities fraud, misusing non-public government information and other charges.

Trading under numerous usernames including “Burdensome-Mix,” Van Dyke allegedly traded about $32,000 on the arrest of Maduro, resulting in profits exceeding $400,000.

“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Those entrusted to safeguard our nation’s secrets have a duty to protect them and our armed service members, and not to use that information for personal financial gain.”

Van Dyke’s defense lawyer is not yet publicly known. Polymarket did not return a request for comment.

The charges against Van Dyke come at a sensitive time for the prediction market industry, which has been growing exponentially, despite calls in Washington and among state leaders for the sites to be reined in.

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Van Dyke is the first to be charged in the U.S. for suspected Polymarket insider trading, but Israeli authorities in February arrested several people and charged two on suspicion of using classified information to place bets about military operations in Iran on Polymarket.

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Senate Adopts GOP Budget, Laying the Groundwork to Fund ICE and Reopen DHS

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Senate Adopts GOP Budget, Laying the Groundwork to Fund ICE and Reopen DHS

The Senate early Thursday morning adopted a Republican budget blueprint that would pave the way for a $70 billion increase for immigration enforcement and the eventual reopening of the Department of Homeland Security.

Republicans pushed through the plan on a nearly party-line vote of 50 to 48. It came after an overnight marathon of rapid-fire votes, known as a vote-a-rama, in which the G.O.P. beat back a series of Democratic proposals aimed at addressing the high cost of health care, housing, food and energy. The debate put the two parties’ dueling messages on vivid display six months before the midterm elections.

Republicans, who are using the budget plan to lay the groundwork to eventually push through a filibuster-proof bill providing a multiyear funding stream for President Trump’s immigration crackdown, used the all-night session to highlight their hard-line stance on border security, seeking to portray Democrats as unwilling to safeguard the country.

Democrats tried and failed to add a series of changes aimed at addressing cost-of-living issues, seizing the opportunity to hammer Republicans as out of touch with and unwilling to act on the concerns of everyday Americans.

Here’s what to know about the budget plan and the nocturnal ritual senators engaged in before adopting it.

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The budget blueprint is a crucial piece of Republicans’ plan to fund the Department of Homeland Security and end a shutdown that has lasted for more than two months. After Democrats refused to fund immigration enforcement without new restrictions on agents’ tactics and conduct, the G.O.P. struck a deal with them to pass a spending bill that would fund everything but ICE and the Border Patrol. Republicans said they would fund those agencies through a special budget bill that Democrats could not block.

“We can fix this with Republican votes, and we will,” said Senator Lindsey Graham, Republican of South Carolina and the Budget Committee chairman. “Every Democrat has opposed money for the Border Patrol and ICE at a time of great peril.”

In resorting to a new budget blueprint, Republicans laid the groundwork to deny Democrats a chance to stop the immigration enforcement funding. But they also submitted themselves to a vote-a-rama, in which any senator can propose unlimited changes to such a measure before it is adopted.

The budget measure now goes to the House, which must adopt it before lawmakers in both chambers can draft the legislation funding immigration enforcement. That bill will provide yet another opportunity for a vote-a-rama even closer to the November election.

Democrats took to the floor to criticize Republicans for supercharging funding for federal immigration enforcement rather than moving legislation that would address Americans’ concerns over affordability.

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“This is what Republicans are fighting for,” said Senator Chuck Schumer, Democrat of New York and the Democratic leader. “To maintain two unchecked rogue agencies that are dreaded in all corners of this country instead of reducing your health care costs, your housing costs, your grocery costs, your gas costs.”

Democrats offered a host of amendments along those lines, all of which were defeated by Republicans — and that was the point. The proposals were meant to put the G.O.P. in a tough political spot, showcasing their opposition to helping Americans afford high living costs. Fewer than a handful of G.O.P. senators crossed party lines to support them.

The G.O.P. thwarted an effort by Mr. Schumer to require that the budget measure lower out-of-pocket health care costs for Americans. Two Republicans who are up for re-election this year, Senators Susan Collins of Maine and Dan Sullivan of Alaska, voted with Democrats, but the proposal was still defeated.

Republicans also squelched a move by Senator Ben Ray Lujan, Democrat of New Mexico, to create a fund that would lower grocery costs and reverse cuts to food aid programs that Republicans enacted last year. Ms. Collins and Mr. Sullivan again joined Democrats.

Also defeated by the G.O.P.: a proposal by Senator John Hickenlooper, Democrat of Colorado, to address rising consumer prices brought on by Mr. Trump’s tariffs and the war in Iran; one by Senator Edward J. Markey, Democrat of Massachusetts, to require the budget measure to address rising electricity prices, and another by Mr. Markey to create a fund to bring down housing costs.

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Senator Jon Ossoff, a Democrat who is up for re-election in Georgia, also sought to add language requiring the budget plan to address health insurance companies denying or delaying access to care, but that, too was blocked by Republicans.

While Republicans had fewer proposals for changes to their own budget plan, they also sought to offer measures that would underscore their aggressive stance on immigration enforcement and dare Democrats to vote against them.

Mr. Graham offered an amendment to allocate funds toward a deficit-neutral reserve fund relating to the apprehension and deportation of adult immigrants convicted of rape, murder, or sexual abuse of a minor after illegally entering the United States. It passed unanimously.

Senator Josh Hawley, Republican of Missouri, sought to bar Medicaid payments to Planned Parenthood, which provides abortion and other services, and criticized the organization for providing transgender care to minors. Senator John Kennedy, Republican of Louisiana, also attempted to tack on the G.O.P. voter identification bill, known as the SAVE America Act. Both proposals were blocked when Democrats, joined by a few Republicans, voted to strike them as unrelated to the budget plan.

The Republicans who crossed party lines to oppose their own party’s proposals for new voting requirements were Ms. Collins along with Senators Mitch McConnell of Kentucky, Lisa Murkowski of Alaska and Thom Tillis of North Carolina.

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Ms. Collins and Ms. Murkowski also opposed the effort to block payments to Planned Parenthood.

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Who is John Phelan, the US Navy Secretary fired by Pete Hegseth?

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Who is John Phelan, the US Navy Secretary fired by Pete Hegseth?

The firing of US Navy Secretary John Phelan is the latest in a shakeup of the American military during the war on Iran, now in its eighth week.

The Pentagon said Phelan would leave office immediately.

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“On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy,” said chief Pentagon spokesperson Sean Parnell. “We wish him well in his future endeavours”.

His firing comes at a critical moment, with US naval forces enforcing a blockade on Iranian ports and ships, and maintaining a heavy presence around the Strait of Hormuz, through which 20 percent of the world’s oil and gas passes during peacetime.

Although the Pentagon gave no official reason for the dismissal, reports indicate the decision was linked to internal disputes, including tensions with Defense Secretary Pete Hegseth.

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Phelan’s removal is part of a broader pattern of dismissals and restructuring within the US military under President Donald Trump’s administration – including during the current war.

So, who is John Phelan, and what impact could his firing have on US military strategy?

Who is John Phelan?

As the US Navy’s top civilian official, Phelan had various responsibilities, including overseeing recruiting, mobilising and organising, as well as construction and repair of ships and military equipment.

He was appointed in 2024 as a political ally of Trump, despite having no prior military or defence leadership experience.

Before entering government, Phelan was a businessman and investment executive, as well as a major Republican donor and fundraiser — a background that is fairly common among Trump appointees and advisers. The US president’s two top diplomatic negotiators, for instance, are Steve Witkoff — a real estate businessman with no prior diplomatic experience – and Trump’s son-in-law, Jared Kushner.

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According to the Reuters news agency, Phelan’s tenure quickly became controversial. He faced criticism for moving too slowly on shipbuilding reforms and for strained relationships with key Pentagon figures, including Hegseth and his deputy, Steve Feinberg.

rump with U.S. Marine Corps Lieutenant General Michael Borgschulte and Secretary of the Navy John Phelan (R) before the game between the Navy Midshipmen and the Army West Point Black Knights at M&T Bank Stadium [File: Tommy Gilligan/Imagn Images/Reuters]

In addition, Phelan was reportedly under an ethics investigation, which may have weakened his standing in the administration.

Navy Undersecretary Hung Cao, who was also reported to have a difficult relationship with Phelan, has become acting secretary. Fifty-four-year-old Cao is a 25-year Navy veteran who previously ran as a Republican candidate for the US Senate and House of Representatives in 2022 and 2024 respectively, but was unsuccessful on both occasions.

Democrats have criticised Phelan’s removal, calling it “troubling”.

“I am concerned it is yet another example of the instability and dysfunction that have come to define the Department of Defense under President Trump and Secretary Hegseth,” said Senator Jack Reed, the top Democrat on the Senate Armed Services Committee.

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Who else has the Trump administration fired since the war with Iran began?

Phelan’s removal is the latest in a series of senior military leaders being fired or are leaving during the US-Israeli war on Iran, in addition to others since Trump was re-elected.

Among the most notable dismissals was Army Chief of Staff General Randy A. George, in the first week of April. George was appointed in 2023 under former US President Joe Biden.

According to reports, Hegseth also fired the head of the Army’s Transformation and Training Command, a unit concerned with modernising the army, and the Army’s chief of chaplains. The Pentagon has not confirmed their dismissal.

Why is Phelan’s dismissal significant?

The 62-year-old’s removal comes during a fragile ceasefire with Iran, as the ⁠⁠US continues to move more naval assets into the region.

The Navy is central to enforcing Trump’s blockade of Iranian ports to restrict Iran’s oil exports and apply economic pressure on Tehran, as the US president looks eager to wrap up the war, which is deeply unpopular to many Americans.

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However, there are no indications that Trump is willing to end the blockade or other naval operations in the Strait of Hormuz, as negotiations between Washington and Tehran have come to a standstill.

Tensions have escalated in recent days after the US military seized an Iranian container ship. The US claimed it was attempting to sail from the Arabian Sea through the Strait of Hormuz to the Iranian port of Bandar Abbas.

Tehran responded by describing the attack and hijack as an act of “piracy”.

Iran has since captured two cargo ships and fired at another.

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