Indonesia Introduces Financial Incentives for Stunting Reduction

Government Allocates Rp 300 Billion for Successful Regions

The Indonesian government has announced a significant initiative to combat stunting by allocating Rp 300 billion in fiscal year 2025 as financial incentives for regions that have demonstrated success in reducing stunting rates. This program is formalized through the Minister of Finance Decree No. 330/2025, which outlines the allocation, requirements, and distribution details for these fiscal incentives.

Supporting National Health Objectives

The decision to provide these incentives is driven by the need to support national efforts in reducing stunting, as mandated by Presidential Regulation No. 71/2021. The regulation emphasizes the importance of coordinated efforts across different levels of government to address this critical health issue. By offering financial rewards to high-performing regions, the government aims to encourage continued progress and foster a competitive environment that drives improvement across all regions.

Implementation Details

The Ministerial Decree specifies that the allocated funds will be distributed based on regional performance in stunting reduction. The decree came into effect on November 10, 2025, marking a significant step in the government's multi-faceted approach to addressing stunting. This initiative not only provides financial support but also recognizes and motivates regional governments to maintain their efforts in improving health outcomes.

Broader Implications

This financial incentive program is part of a comprehensive strategy to tackle stunting, a major public health challenge in Indonesia. By linking financial rewards to performance, the government is creating a results-driven approach that could potentially accelerate progress in reducing stunting rates across the country. The success of this program will likely depend on effective implementation, transparent monitoring, and continued commitment from both central and regional governments.