{
    "success": true,
    "data": {
        "id": 1593777,
        "msgid": "purbaya-cuts-mbg-funds-if-oil-price-reaches-safe-threshold-1772809212",
        "date": "2026-03-06 20:35:16",
        "title": "Purbaya Cuts MBG Funds If Oil Price Reaches Safe Threshold",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's Finance Minister Purbaya Yudhi Sadewa says the government could trim MBG funding for free nutritious meals if global oil prices surge to US$92 per barrel, potentially widening the state budget deficit beyond its safe limit of 3.6% of GDP. He stresses MBG savings would not affect its main food-aid mandate, but other expenditures and infrastructure projects could be deferred or cut, with some costs possibly shifted to next year.",
        "content": "<p>Jakarta, CNBC Indonesia \u2013 Finance Minister Purbaya Yudhi Sadewa has\nopened the option of making savings in the MBG budget for free\nnutritious meals if world oil prices surge to US$92 per barrel as a\nresult of the Iran\u2013Israel\u2013US conflict, which could push the state budget\ndeficit beyond the safe threshold to as high as 3.6% of GDP.<\/p>\n<p>\u201cWe have run the exercise that if oil prices average US$92 for a\nyear, the deficit would be 3.6% or more,\u201d Purbaya said in his Jakarta\noffice on Friday, 6 March 2026.<\/p>\n<p>\u201cIf that happens, we will take steps to ensure it does not occur.\nWhere could savings come from? For instance, savings in MBG,\u201d he\nasserted.<\/p>\n<p>\u201cNevertheless, MBG budget savings will not touch the ceiling for its\nmain function, i.e., providing meals to schoolchildren, pregnant women,\nand the elderly.<\/p>\n<p>\u201cMeanwhile other budgets, such as procurement of goods, would become\ntargets for savings or have their allocations cut if the deficit widens\ndue to the rise in oil prices rather than increasing the price of\nsubsidised fuel.<\/p>\n<p>\u201cThe MBG programme is clearly good, but we want to guard against\nspending that does not directly support the food aspect. For example,\nbuying motorcycles\u2014if all SPPG funds were replaced with motorcycles,\nthey\u2019d be happy; I would be the one to lose. And for example if we buy\ncomputers, all SPPG would be given computers,\u201d he said.<\/p>\n<p>\u201cIn addition to MBG savings should the deficit widen, Purbaya said he\nwould also trim budgets for infrastructure projects that can be carried\nover into multiple years. For instance, the Ministry of Public Works.\nThere may be expenditures that can be shifted to next year. Various\nprogrammes they have, such as bridges and schools,\u201d he said.<\/p>\n<p>\u201cAs is known, MBG\u2019s budget for this year amounts to Rp 335 trillion\nwith a target of 82.9 million recipients. This budget is higher than\n2025\u2019s Rp 71 trillion with a target of 17.9 million recipients.\u201d<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/purbaya-cuts-mbg-funds-if-oil-price-reaches-safe-threshold-1772809212",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}