{
    "success": true,
    "data": {
        "id": 1645526,
        "msgid": "mbg-distribution-cut-to-5-days-here-are-the-actual-effects-1774936318",
        "date": "2026-03-31 12:20:00",
        "title": "MBG Distribution Cut to 5 Days, Here Are the Actual Effects",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian government is considering reducing the free nutritious meal (MBG) programme from daily to five days a week as part of broader budget efficiency measures amid economic pressures from the ongoing Iran-Israel-US conflict, potentially saving up to Rp40 trillion. Economists warn that while this fiscal adjustment may ease budgetary strains, it carries significant social risks, particularly in nutritionally vulnerable regions, and could cumulatively dampen domestic demand and economic growth if not implemented precisely. This move highlights the delicate balance between fiscal prudence and supporting key drivers of Indonesia's economy, such as household consumption.",
        "content": "<p>Jakarta, CNBC Indonesia - Several domestic economists assess that\nthere are risks in the proposal from the National Nutrition Agency (BGN)\nplanning to cut the number of days for free nutritious meal (MBG)\ndistribution as part of the government\u2019s budget efficiency policy. This\nproposal has reached Finance Minister Purbaya Yudhi Sadewa from BGN. The\nbudget efficiency is said to address risks of economic and fiscal\npressures due to the ongoing Iran-Israel and United States war, which is\ncausing volatility in energy prices and supplies. Purbaya explains that\nthe MBG budget efficiency is not yet part of the total efficiency value\nset by President Prabowo Subianto at Rp81 trillion. With the efficiency\nof one day of MBG distribution, Purbaya states that BGN has estimated\nthe savings could reach around Rp40 trillion. According to economist\nfrom the Center of Reform on Economics (CORE) Yusuf Rendy Manilet, the\ngovernment indeed has few choices other than making broader spending\nadjustments. However, the savings impact from one programme alone is\nrelatively small if not followed by wider efficiency. \u201cIf only MBG is\nadjusted, the impact on the fiscal is relatively small,\u201d Yusuf told CNBC\nIndonesia, quoted Tuesday (31\/3\/2026). On the other hand, Yusuf assesses\nthat efficiency in MBG can also slow real economic activity. When many\ngovernment programmes are held back or scaled down simultaneously, the\neffect will directly be felt in domestic demand. This is often\nunderestimated. \u201cSo it\u2019s not just about reducing one programme, but the\ncumulative effect of overall government spending tightening,\u201d Yusuf\nsaid. Head of the Center for Macroeconomics and Finance at Indef, M.\nRizal Taufikurahman, also assesses that reducing the frequency of MBG\ncannot be seen merely as budget cutting. According to him, this policy\nrisks social impacts if implemented uniformly without considering\nregional conditions, especially areas with high nutritional\nvulnerability. \u201cThat means fiscally, this step can indeed reduce\nspending pressure, but it is not a fundamental solution. Especially\nsocially, it is risky if implemented uniformly without considering\nregional conditions, particularly areas with high nutritional\nvulnerability,\u201d Rizal told CNBC Indonesia, quoted Tuesday (31\/3\/2026).\nFurthermore, Rizal assesses that risks will emerge if efficiency is too\naggressive and targets spending directly related to people\u2019s purchasing\npower. In a global condition still full of pressures, policies like this\ncould instead hold back domestic consumption, which has been the main\npillar of Indonesia\u2019s economic growth. \u201cWith external pressures such as\nrupiah weakening, potential energy inflation rise, and export\nmoderation, then imprecise efficiency policies could turn into growth\nsuppressors, not stability supporters,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/mbg-distribution-cut-to-5-days-here-are-the-actual-effects-1774936318",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}