Indonesia Introduces Rp 300 Billion Stunting Reduction Incentive Program

Financial Incentives for Regional Performance

The Indonesian Ministry of Finance has announced a significant fiscal incentive program aimed at encouraging regional governments to combat stunting. Through Minister of Finance Regulation No. 330/2025, the government is allocating Rp 300 billion to be distributed among regions demonstrating exceptional performance in reducing stunting cases. The regulation, effective as of November 10, 2025, outlines specific criteria for the distribution of these funds.

Distribution Criteria and Performance Metrics

The incentive program will reward regions based on their performance in stunting reduction, with a total of 3 provinces, 38 regencies, and 9 cities expected to receive funding. The selection will be based on rankings that highlight the most successful regional initiatives. This approach aims to encourage competition among regions while supporting national health objectives.

National Context and Policy Objectives

The incentive program aligns with Presidential Regulation No. 71/2021, which focuses on accelerating stunting reduction nationwide. By providing financial rewards to high-performing regions, the government aims to create a positive incentive structure that promotes best practices in stunting prevention and treatment at the local level.

Implementation and Monitoring

The Ministry of Finance will oversee the distribution of funds, ensuring that allocations are made according to the established criteria. Regional governments receiving these incentives are expected to continue their efforts in combating stunting, with the national government monitoring progress through established health metrics.