Jakarta, CNBC Indonesia - The Indonesian government has responded to\nthe concerns of international rating agencies, Fitch Ratings, about the\nfree nutritious meals programme (MBG), which they say will burden the\nstate budget in the long term.<\/p>\n
As is known, the concern was part of Fitch Ratings\u2019 consideration in\nrevising Indonesia\u2019s rating outlook from stable to negative, with the\nsovereign credit rating currently at BBB, or investment grade.<\/p>\n
Coordinating Economic Minister Airlangga Hartarto said, contrary to\nFitch Ratings\u2019 assessment, the World Bank and the Rockefeller Institute\nof Government view government investment in MBG as adding sevenfold\nvalue to Indonesia\u2019s economy.<\/p>\n
\u201cWell, if several studies by the World Bank and by the Rockefeller\nFoundation show that with mass and well-run MBG implementation a 1\ndollar investment yields 7 dollars,\u201d Airlangga said at the Menara\nBatavia complex, Jakarta, Thursday (5 March 2026).<\/p>\n
Therefore, rather than treating MBG as a burden on the national\nbudget, the government sees it as a long-term investment to strengthen\nthe capacity of human resources. He added that many countries have\nimplemented the programme.<\/p>\n
\u201cSo it is an investment and many countries do it. Even the United\nStates does it, so this is a long-term and medium-term challenge that\ncannot be eliminated for the short term,\u201d he asserted.<\/p>\n
Fitch Ratings had previously announced a revision of the outlook for\nIndonesia\u2019s debt rating to negative from previously stable.<\/p>\n
Meanwhile, Indonesia\u2019s debt rating itself, based on the latest\nassessment in March 2026, remains BBB, i.e., investment grade.<\/p>\n
\u201cThis outlook revision reflects the increasing policy uncertainty and\nthe erosion of consistency and credibility of Indonesia\u2019s policy mix\namid rising centralisation of policy-making authority. It could weaken\nmedium-term fiscal prospects, damage investor sentiment, and place\npressure on external reserves,\u201d according to the official statement.\nWednesday (4 March 2026).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fitch-worried-mbg-burdens-the-state-budget-airlangga-rockefeller-says-it-generates-1772690390", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }