Airlangga Affirms Free Nutritious Meals and Red-White Village Cooperative Programmes Unaffected by Budget Efficiency

The government is currently developing a budget efficiency plan for various ministries and institutions as part of efforts to maintain the 2026 national budget deficit below 3 per cent.

However, Coordinating Minister for Economic Affairs Airlangga Hartarto assured that the Free Nutritious Meals (MBG) programme and the Red-White Village Cooperative (KDMP) will not be affected by the budget efficiency policy.

He stated that the government will not reduce funding for flagship programmes. “Budgets for flagship programmes will not be cut at all,” said Airlangga at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Monday, 16 March 2026.

According to him, several flagship government programmes are not targets of efficiency measures because they have long-term investment value for the national economy and public welfare.

Meanwhile, efficiency efforts will be directed at expenditure items that could provide additional fiscal space. Therefore, Airlangga acknowledged that the government is currently evaluating such potential expenditure items.

This prompted Airlangga to convene a Limited Coordination Meeting (Rakortas) involving several ministries, including the Ministry of Finance on Monday afternoon, 16 March 2026.

This step represents President Prabowo Subianto’s directive to maintain the national budget deficit below 3 per cent.

“Clearly, the President’s directive is to maintain the deficit at 3 per cent. And earlier there was a special coordination meeting to address follow-up actions from yesterday’s plenary session,” said Airlangga.

However, the government has not yet set a final figure for the budget efficiency of ministry and institutional spending. The decision will be announced by Prabowo later.