Airlangga Guarantees Priority Programmes Funding Untouched Despite Iran-Israel War Risks

JAKARTA — Coordinating Minister for Economic Affairs Airlangga Hartarto has assured that budgetary allocations for priority programmes under President Prabowo Subianto will not be reduced, despite the government implementing contingency measures against potential impacts from conflict between Iran and the United States-Israel.

Priority programmes that will not face budget reductions include the Free Nutritious Meals Programme (MBG) and the Red and White Village Cooperatives (KDMP).

“Flagship programmes will not be altered in any way. Everything is proceeding as planned because these represent long-term investments,” Airlangga said at the Coordinating Ministry for Economic Affairs on Monday, 16 March 2026.

This policy decision aims to maintain the State Budget deficit within a safe threshold of 3 per cent.

Should conflict persist for five to six months, through to an estimated September 2026, the 2026 budget allocation has already been determined and the deficit will be maintained below 3 per cent.

“As long as the conflict has not yet reached five months, we are still in a scenario of budget cuts and we are maintaining the maximum deficit threshold at 3 per cent,” Airlangga stated.

According to Dadan, he has discussed the MBG budget allocation with other ministries and institutions. The outcome is that the MBG budget has been maintained at previous levels.

“We have already discussed this matter. At present, we have not made any changes and are awaiting developments in the situation,” Dadan said at the Coordinating Ministry for Economic Affairs office.