Indonesia’s president promised free meals for every student in the country. But unemployment is rising, and some analysts say he’s making matters worse.The New York Times reports that Indonesia’s president has promised to provide free meals for every student in the country. However, as unemployment rates continue to rise, some analysts argue that his actions may be exacerbating the situation.
Nina Megayanti, a former marketing employee in Jakarta, used to live a comfortable life, enjoying meals with friends and taking trips abroad. However, after losing her job in 2023, she struggled to make ends meet and depleted her savings.
Unfortunately, Megayanti is not alone in her struggles. The International Monetary Fund has warned that Indonesia’s unemployment rate is expected to become the second-highest in Asia, after China’s. Despite this, the government maintains that the economy is stable, citing a 5 percent annual growth rate.
Since taking office in October, President Prabowo Subianto has been focused on fulfilling his campaign promises, which include implementing a nationwide free school lunch program and providing affordable housing. To fund these initiatives, he has redirected billions of dollars in government funds, cut budgets, and demanded austerity measures from various ministries. He has also terminated contracts with thousands of government contractors. However, critics argue that the president’s priorities are misplaced, as the country’s economy heavily relies on government spending.
Economist Awalil Rizky from the Bright Institute, an independent think tank in Jakarta, believes that the government is in denial about the state of the economy. He points to the rising unemployment rates as evidence that the situation is not as good as the government claims.
The I.M.F. has projected that Indonesia’s unemployment rate will reach 5 percent this year, up from 4.9 percent in 2024. Additionally, the government has lowered its estimate for economic growth in 2025 to around 5 percent, down from 5.2 percent.
It is clear that Indonesia is facing economic challenges, and the government’s actions may not be enough to address them. As the country continues to grapple with rising unemployment, it is crucial for leaders to reassess their priorities and take effective measures to support the economy and its citizens.
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