JAKARTA – Indonesian President Prabowo Subianto warned he will not tolerate corruption after firing the head of his flagship US$15 billion (S$19.25 billion) free meals programme aimed at alleviating poverty and malnutrition.

“I do not want the people’s money to be stolen,” Prabowo said in a speech to thousands of officials and partners of the free meals programme at an event in West Java late on June 3. “There are no exceptions.”

Prabowo this week fired Dadan Hindayana as the head of Indonesia’s nutrition agency and two deputies, and a day later Hindayana was named as a key suspect in a corruption probe.

The scandal is the biggest to involve an entity created since Prabowo took power in late 2024 with a pledge to root out corruption, and the president spoke in unusually personal terms.

“I was saddened because these were people I trusted and entrusted with important responsibilities,” he said, recalling advice from his late father, economist and former trade minister Sumitro Djojohadikusumo, to always side with the people when faced with difficult decisions.

He said it was difficult to sign the dismissal orders and didn’t want to comment further on the individuals pending the investigations, or to be seen as influencing the legal process.

Hindayana’s representatives haven’t been reachable for comment on the allegations of graft at the National Nutrition Agency, which have added to a litany of bad news to afflict South-east Asia’s economy.

He has been detained along with two ex-deputies. 

The rupiah hit a record low of 18,000 against the dollar early on June 4 and stocks are near a five-year low.

Investor concerns including an ongoing MSCI Inc review of investability; the r...