DIGIVESTASI - Two major projects requiring substantial budgets will be implemented during the administration of President and Vice President-elect Prabowo Subianto and Gibran Rakabuming Raka. These two projects are the continuation of the Nusantara Capital City (IKN) development and the free nutritious meal program. However, which project is better for economic growth?

An economist from the Institute for Development of Economics and Finance (Indef), Eko Listiyanto, believes that the free nutritious meal program is more beneficial. This program, estimated to cost Rp 71 trillion in 2025, has greater potential to boost Indonesia's domestic economy.

“If I had to choose, I would go with the free nutritious meals,” Eko said in a discussion organized by Indef on Monday (8/7/2024).

According to Eko, Indef's study indicates that the IKN project will only have a limited economic impact on the Kalimantan region. On the other hand, the free nutritious meal program has the potential to provide broader multiplier effects.

“This project can drive higher economic growth, while according to Indef's study, IKN will only give a minimal boost,” he explained.

However, Eko warned that certain conditions must be met for the free nutritious meal program to have a positive impact on the economy. One condition is that Prabowo must involve micro and small businesses and limit the use of imported goods in its implementation.

“We must ensure that the free nutritious meal program runs without heavily relying on imports, such as milk, which could otherwise worsen our current account deficit,” he added.

Meanwhile, another Indef economist, Eisha Maghfiruha, stated that Prabowo and Gibran must be extra cautious in executing projects during their administration. This caution is necessary given the government’s debt, which has already reached Rp 8,000 trillion.

Eisha emphasized that when determining priority projects, the government must first ensure the readiness of funding sources. Second, they must ensure that the project significantly contributes to economic growth.

“Moreover, we need to focus on development and societal welfare, reducing social inequality, and creating jobs,” she said.

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