Market outlook diverges on grains, proteins as Indonesia launches free meals program

Indonesia’s free meals program officially began on Jan. 6, with over half a million recipients, yet market participants hold mixed outlooks on agricultural commodities to be affected by the multi-billion dollar rollout. The free meals program, part of Indonesian President Prabowo Subianto’s 2024 election manifesto, aims to provide nutritious meals to schoolchildren and pregnant women. The ambitious goal is to feed 82.9 million people — nearly 30% of Indonesia’s expected population — by 2029. Officials involved in the program have highlighted its benefits, from tackling childhood malnutrition to reducing poverty. The program hopes to involve local farmers in its supply chain and generate new jobs as the government seeks to staff thousands of public kitchens to feed beneficiaries. However, local market participants have noted that increased consumption demand from the free meals program could put several sectors in a sticky situation, primarily by pushing local prices of ...