DEN Chairman Says Govtech Can Boost MBG Efficiency

National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan stated that implementing government technology (govtech) can help improve the efficiency of the Free Nutritious Meals (MBG) programme management. The DEN is currently developing this govtech as a digital ecosystem to integrate ministry and government agency data for monitoring and evaluating various government programmes. ‘For instance, with existing data, the MBG implementation can identify which regions require assistance and which should be second priorities, and so on,’ Luhut Binsar Pandjaitan said in Jakarta on Monday. He highlighted the MBG budget of Rp268 trillion this year, reduced from an initial allocation of Rp335 trillion, stressing the need for evaluation to ensure the programme operates efficiently. He argued that a pilot test should have been conducted before full implementation, given the programme’s daily expenditure of up to Rp1 trillion, which, if properly utilised, could stimulate the local economy. ‘Indonesia has never before had daily spending of Rp1 trillion reaching local traders and SMEs, which impacts the economy,’ Luhut said. Unlike the MBG rollout, the DEN is prioritising large-scale testing for govtech development. The technology is currently being piloted in 42 regencies and one province, including Banyuwangi in East Java. Due to the system’s implementation, they found the Social Assistance (bansos) programme in the regency was only 77% effective in targeting the right recipients. ‘Imagine how inefficient the system is. Thanks to govtech, we identified many who should receive aid but didn’t, and vice versa. However, after one month of implementation, we have already improved the distribution,’ Luhut said. He stated that all ministry and government agency data will begin to connect and integrate into the govtech system from 1 June 2026. The data will then be harmonised and organised using artificial intelligence (AI) before the system is officially launched by President Prabowo Subianto in October 2026. He is confident the govtech system will assist President Prabowo in making more accurate, swift, and detailed decisions on programmes and policies to support the government’s Asta Cita agenda. ‘Therefore, the President should not receive incorrect data,’ Luhut added.