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Indonesia’s Financial Buffers Strain Under Prabowo’s Big Spending Plans

Source: ft.com

President Prabowo Subianto's new government plans heavy spending on cash handouts and food aid for millions of poor families.
Indonesia's $160bn reserve fund faces rapid depletion from these costly programs.
Economists warn this could weaken the rupiah and spark inflation if not managed carefully.

Indonesia's new president, Prabowo Subianto, wants to launch ambitious welfare programs like monthly cash payments to 82 million people and free meals for schoolchildren. These plans aim to fight poverty but risk draining the country's financial safety nets. The article explores how this spending push tests Indonesia's economic stability after years of careful saving.