BPS Reveals MBG to Kopdes Merah Putih Boost Q1-2026 Economic Growth

Jakarta, VIVA – The Central Statistics Agency (BPS) has revealed that the Free Nutritious Meals (MBG) programme is contributing to Indonesia’s economic growth, recorded at 5.61% year-on-year in the first quarter of 2026.

BPS Chief Amalia Adininggar Widyasanti explained that the MBG’s contribution is reflected in the gross fixed capital formation (GFCF) component, driven by the construction of supporting infrastructure for Nutritional Fulfilment Service Units (SPPG). This has a positive impact on GFCF due to physical construction activities.

“In the first quarter of 2026, we have observed significant physical development of SPPG, and of course, these physical constructions and connectivity infrastructure are part of the contribution to GFCF,” Amalia said during a press conference in Jakarta on Tuesday.

Additionally, investments in SPPG are recorded as capital expenditure, including the construction of kitchens and the provision of supporting equipment. As is known, overall, GFCF is the second largest contributor to economic growth after household consumption, with a contribution of 1.79%.

This component also grew by 5.96%, driven by government investments, including the development of national priority programmes, as well as private investments. GFCF’s contribution to gross domestic product (GDP) stands at 28.29%.

Meanwhile, from the business field perspective, the construction of SPPG infrastructure and Red and White Village Cooperatives (Kopdes Merah Putih) has also boosted growth in the construction sector. This sector grew by 5.49% and contributed 0.53% to first-quarter 2026 economic growth.

“Construction grew stronger by 5.49%, in line with increased physical infrastructure development activities driven by higher realisation of government capital expenditure budgets for the construction sector, increased private construction activities, one of which is due to the addition of Nutritional Fulfilment Service Units or SPPG and also Red and White Village Cooperatives,” Amalia explained.

BPS recorded Indonesia’s economic growth in the first quarter of 2026 at 5.61% year-on-year. However, on a quarter-to-quarter basis, the economy contracted by 0.77% compared to the fourth quarter of 2025.

From the expenditure side, household consumption remains the main contributor to economic growth with a contribution of 2.94%.

“Indonesia’s economic growth in the first quarter of 2026 is also supported by the GFCF component with a growth source of 1.79%, while government consumption provides a growth source of 1.26%,” Amalia stated.