How Effective is Foreign Aid to Indonesia? : Case Study Prabowo Subianto’s Free Lunch Program for School Children, Children Below 5, and Pregnant Women, Funding from China

Abstract

ABSTRACT

This paper will discuss Indonesia as a recipient of foreign aid from many countries, including the new player in foreign aid, China. In writing this essay, I use Poor Economics by Banerjee and Duflo, The Great Escape by Deaton, and additional references. In November 2024, the newly inaugurated President of Indonesia, Prabowo Subianto, alongside the President of China, Xi Jinping, witnessed the signing of a Memorandum of Understanding (MoU). China agreed to fund the ‘Food Supplementation and School Feeding Programme in Indonesia’, Prabowo Subianto’s controversial working program. This paper will analyse the effectiveness of foreign aid in Indonesia, specifically the future of the Free Meal Program funded by China. In this essay, I draw on dependency theory and empirical references. The expected conclusion is that foreign aid might provide immediate relief to food-insecure Indonesians, but it will create dependency and room for corruption. Furthermore, China might prioritise its national interest over Indonesia’s long-term development goals.