At least 400 investors who borrowed money to construct more than 1,500 kitchens in remote parts of Indonesia are facing delayed or altered reimbursement terms after the government sought to reduce costs for President Prabowo Subianto's national free meal program, according to Reuters.
Indonesian kitchen investors face delayed repayments under Prabowo's free meal program
At least 400 investors who borrowed money to construct more than 1,500 kitchens in remote parts of Indonesia are facing delayed or altered reimbursement terms after the government sought to reduce costs for President Prabowo Subianto's national free meal program, according to Reuters.
One of those investors is Sigit Buludawa, 34, a lawyer who built a kitchen in the fishing village of Torosiaje, in Gorontalo province on the coast of Sulawesi island, at a cost of 1.8 billion Indonesian rupiah ($100,000). Buludawa completed the kitchen in November using his own money and loans from unlicensed lenders.
The kitchen sits on stilts above the waters of Tomini Bay. Buludawa told Reuters during a visit to the low-income village that unlicensed lenders — commonly described as loan sharks — are now pressing him over the debt.
Prabowo's free meal initiative, described as his flagship program, targets 83 million Indonesians including school children and pregnant and breastfeeding women. The program required what Reuters characterized as massive infrastructure investment, and included a government plan incentivizing private investors to help fund kitchen construction in remote areas on reimbursement terms.
"My reputation has been badly damaged, and the losses are enormous," Buludawa said.
- The source does not state the specific nature of the changes or delays to reimbursement terms, including new timelines or revised payment amounts.
- The source does not include a response or statement from the National Nutrition Agency or any other government body regarding the delayed or changed reimbursement terms.
- The source does not state the total amount of money borrowed by Buludawa or the repayment terms of his loans from unlicensed lenders.
- The source does not state how many of the more than 1,500 kitchens are currently operational or how many investors have received any reimbursement.
- The source does not state the government's stated rationale for seeking to reduce program costs.
- The source text supplied appears truncated; some material may be missing.
Read the original at The Japan Times