Prabowo Fires Nutrition Chief Over Corruption Probe, June 05

President Prabowo Subianto fired Dadan Hindayana, head of Indonesia’s National Nutrition Agency, after investigators named him as a graft suspect. Two deputies were also dismissed and arrested. The scandal strikes at Prabowo’s signature US$15 billion free meals programme, launched to feed 82.9 million children and pregnant women. The probe tests his anti-corruption stance while threatening a welfare scheme central to his economic agenda.

What the Corruption Charges Allege

Investigators alleged that Dadan and two former deputies rigged verification processes to approve unqualified foundations as programme partners. These foundations received billions of rupiah per day in incentives. The officials also allegedly interfered in procurement, influencing work plans so specifications did not match actual needs. Questionable purchases included over 20,000 electric motorcycles worth around US$56 million, 32,000 pairs of shoes, 31,000 tablets and 5,400 units of 75-inch televisions deemed unnecessary and overpriced.

Prabowo’s Response and Anti-Corruption Message

Prabowo said in a speech on June 3 that he does not tolerate corruption and will not allow people’s money to be stolen. He described being saddened by the betrayal of officials he trusted. Prabowo warned over graft while declining to comment on individuals pending investigation to avoid influencing the legal process. The scandal marks the largest corruption case involving an entity created since he took office in late 2024.

Challenges to Indonesia’s Economy

The rupiah hit a record low of 18,000 against the dollar on June 4, and stocks are near five-year lows. Investor concerns include an ongoing MSCI investability review, potential credit rating downgrades, and possible breach of fiscal deficit limits due to expensive programmes like the free meals scheme. The graft probe will not stop the programme but could see tighter access and oversight. The free meals initiative has also faced criticism over food poisoning cases affecting at least 33,000 children as of April.

Programme Continues Despite Scandal

Prabowo remains committed to the free meals programme, which aims to prevent malnutrition and stunting among schoolchildren and pregnant women. The agency will refocus efforts by cutting back on new kitchens and redirecting resources to more remote areas. The scandal provides an opportunity to improve implementation and strengthen controls, though the scale and cost of the scheme remain under scrutiny given Indonesia’s economic pressures.

Final Thoughts

The corruption probe tests Prabowo’s anti-corruption pledge while threatening a central welfare programme. With Indonesia’s rupiah at record lows and investor concerns mounting, the scandal adds pressure to an already fragile economy.

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