Jakarta. Indonesia is squeezing up to Rp 20 trillion ($1.17 billion) in savings from its Free Nutritious Meals (MBG) program as part of a sweeping reform drive targeting Rp 263.4 trillion ($15.5 billion) in total budget efficiencies.

Chief of Economic Affairs Minister Airlangga Hartarto said the MBG program is being refined to improve efficiency while maintaining its role in strengthening human capital.

The program will focus on providing fresh meals five days a week, while allowing flexibility for boarding schools, underdeveloped regions, and areas with high stunting rates.

“The program is designed to provide fresh meals five days a week, while taking into account exceptions such as dormitories, disadvantaged regions, and areas with high stunting prevalence,” Airlangga said.

He added that efficiency gains from the program could reach up to Rp 20 trillion.

The MBG adjustment is part of a broader policy package under directives from Prabowo Subianto, which will be implemented in phases starting April 1, 2026, to strengthen fiscal resilience and improve the effectiveness of government spending.

A major component of the reforms is the prioritization and refocusing of ministry and agency budgets, with potential savings estimated between Rp 121.2 trillion and Rp 130.2 trillion. Funds are being redirected from lower-priority spending, such as official travel, meetings, and ceremonial activities, toward more productive uses, including disaster rehabilitation in Sumatra.

“Budget reallocations are being made from less productive spending toward programs that have a more direct impact on society,” Airlangga said.

On the operational side, the government will introduce a weekly work-from-home policy every Friday for civil servants and cut official vehicle usage by up to 50%, while exempting operational and electric vehicles.

Airlangga said the WFH policy could generate Rp 6.2 trillion in direct fuel compensation savings, while public fuel spending could decline by around Rp 59 trillion.

In the energy sector, the rollout of the B50 biodiesel program starting July 1, 2026, is expected to reduce fossil fuel consumption by up to 4 million kiloliters, with estimated savings of Rp 48 trillion from lower fuel use and subsidies.

Taken together, the reforms form part of a broader structural transformation aimed at building a more efficient, productive, and resilient economy, while ensuring state spending delivers more tangible benefits to the public.

Add as a preferred source on Google +