Indonesian Political, Business & Finance News

BPS states MBG contributes to Q1 2026 economic growth

| Source: ANTARA_ID Translated from Indonesian | Economy
BPS states MBG contributes to Q1 2026 economic growth
Image: ANTARA_ID

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

The contribution of MBG is reflected, among other things, in the Gross Fixed Capital Formation (PMTB) component, in line with the construction of supporting infrastructure for Nutrition Fulfilment Service Units (SPPG).

BPS Head Amalia Adininggar Widyasanti explained that the addition of SPPG units has a positive impact on PMTB due to physical construction activities.

“In the first quarter of 2026, we also observed quite massive physical construction of SPPG, and of course, these physical constructions and connectivity infrastructure are part of the contribution to PMTB,” said Amalia during a press conference in Jakarta on Tuesday.

In addition, investments in SPPG are recorded as part of capital expenditure, both for building kitchens and providing supporting equipment.

As is known, overall, PMTB was 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 investment, including the construction of national priority programmes, as well as private investment. PMTB’s contribution to gross domestic product (GDP) reached 28.29%.

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

“Construction grew stronger at 5.49%, in line with increased physical infrastructure construction activities driven by increased realisation of government capital expenditure budgets for the construction sector, increased private construction activities, one of which is due to the increasing number of Nutrition Fulfilment Service Units or SPPG and Merah Putih Village Cooperatives,” explained Amalia.

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 was also supported by the PMTB component with a growth source of 1.79%, while government consumption provided a growth source of 1.26%,” said Amalia.

From the business field side, the five sectors with the largest contributions to total GDP in the first quarter of 2026 were manufacturing at 19.07%, trade at 13.28%, agriculture at 12.67%, construction at 9.81%, and mining at 8.69%.

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