MBG Gets a Diet, Rp 40 T Lighter on the Budget
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.
Tags: Keywords:Related Articles
Indonesia Boosts Ministry Spending by $516 M as Budget Room Stays Tight
Indonesia raises ministry spending by Rp9.1 trillion in 2027 as officials stress the need to prioritize limited fiscal resources.BI Sets Timetable With Finance Ministry for Government Fund Flows
Bank Indonesia and the Finance Ministry have set a timetable for government fund placements and withdrawals to keep banking liquidity stablePurbaya Says MBG Spending Could Fall Below $11.3 Billion
Purbaya says the 2027 MBG budget could fall below Rp 200 trillion through greater efficiency, technology, and tighter oversight.Widespread Food Poisoning Cases Hit Indonesia’s Free Meals Program
Hundreds of schoolchildren across Indonesia have fallen ill after consuming meals from the government’s Free Nutritious Meals (MBG) program.Purbaya Says Ineffective Spending Drove Cuts to Regional Transfers
Finance Minister Purbaya said ineffective and misallocated local spending prompted Jakarta to cut direct transfers to regional governments.Danantara to Pay Rp 120 Trillion in State Dividends
Danantara will transfer Rp 120 trillion in dividends to the state treasury, strengthening Indonesia’s fiscal reserves for 2026.Free Meal Program Helps Drive Indonesia’s August Inflation, BPS Says
Indonesia’s free meal program helped boost chicken demand in August as annual inflation accelerated to 3.19%, BPS said.Free Meal Program Gets Lion’s Share of BGN’s $13.6 Billion 2027 Budget
Indonesia’s Nutrition Agency gets Rp 240 trillion for 2027, with 97% earmarked for the government’s free nutritious meal program.Purbaya Wants Welfare Data Overhauled Ahead of Fuel Subsidy Restrictions
Indonesia is overhauling its welfare database as it prepares to restrict subsidized fuel access for wealthier households.Nutrition Agency Chief Threatens Dismissal for MBG Program SOP Violations
Indonesia’s nutrition agency chief threatens dismissals over violations in Prabowo’s flagship free meal program.The Latest
SAR Team Expands Search for Missing Journalists Near Anak Krakatau
Indonesian rescuers have expanded the sea search for eight people, including five journalists, missing near Mount Anak Krakatau.Indonesian Stocks Gain at Open as Oil Prices Raise Profit-Taking Risks
Indonesian stocks opened higher before turning volatile as investors weighed rising oil prices, reserves and global market weakness.Court Hears of $5,000 Fee for Expedited Hajj Slots in 2023
A former Religious Affairs Ministry staffer testified that 181 pilgrims paid $5,000 each for expedited hajj departures in 2023.Five Journalists Reported Missing While Covering Anak Krakatau Eruption
Five journalists and two boat crew members are missing after losing contact while covering the Anak Krakatau eruption off Banten.Trump Tariffs Cripple EU Firms’ Confidence in ASEAN
As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.Most Popular
