Jakarta. The government is weighing a major efficiency overhaul of its Free Nutritious Meals (MBG) program that could save up to Rp 40 trillion ($2.37 billion) annually, as fiscal pressures mount amid global uncertainties.

Finance Minister Purbaya Yudhi Sadewa said the proposed savings would come from reducing the program’s implementation from six days to five days a week, an adjustment calculated internally by the National Nutrition Agency (BGN). The MBG program is allocated Rp 335 trillion ($19.8  billion) in the 2026 state budget.

“There is efficiency in the MBG program. Initial estimates are around Rp 40 trillion, although the figure is still rough and could be higher,” Purbaya said at the Finance Ministry in Jakarta on Wednesday.

He stressed that the initiative was proposed by BGN itself, not imposed by the Finance Ministry, as part of broader efforts to safeguard fiscal sustainability. The savings are expected to be redirected to more urgent government priorities.

“This is not a cut from us. They proposed it themselves, saying efficiencies are still possible under current conditions. So it’s not fair to say BGN is turning a blind eye; they are actively seeking efficiencies,” he said.

Purbaya added that the Rp 40 trillion estimate reflects annual savings and is separate from the government’s broader plan to trim Rp 80 trillion in spending across ministries and agencies. He signaled that the central government may step in to enforce cuts if ministries fail to submit their own proposals.

Separately, State Secretary Prasetyo Hadi said the government has reallocated nearly Rp 800 trillion in spending to cushion the impact of geopolitical tensions in the Middle East. President Prabowo Subianto has also ordered an additional Rp 81 trillion in budget efficiencies.

Despite the sweeping austerity measures, Prabowo assured that priority programs such as MBG will continue, framing the initiative as a long-term investment in human capital.

“I will hold on as much as possible. Instead of money being corrupted, it’s better that people can eat. I am fully convinced we are on the right path, and our funds are there. I am staking my leadership on this,” the president said.

The government pointed to its experience in past fiscal consolidation. In 2025, it secured Rp 306.69 trillion in savings, comprising Rp 256.1 trillion from ministry and agency spending and Rp 50.5 trillion from regional transfers.

Prabowo added that mitigation measures are already in place to shield the domestic economy from escalating tensions in the Middle East.

“I have capable ministers and a strong team. We have taken steps. We are not waiting for a crisis before responding,” he said.

Add as a preferred source on Google +