Efficiency Review Options for Free Nutritious Meals Programme Following Rise in Global Oil Prices
Finance Minister Purbaya Yudhi Sadewa will monitor budget efficiency of the Free Nutritious Meals (Makan Bergizi Gratis, MBG) programme following global oil prices breaking through the US$100 per barrel mark. The government will assess the impact of rising global oil prices over the coming month.
However, he stated this step does not mean cutting the MBG budget. “So MBG will not be reduced, except for unproductive expenditures,” Purbaya said during a visit to Tanah Abang Market in Jakarta on Monday, 9 March 2026.
The state treasurer explained that budgets deemed unnecessary would be reviewed again. For example, procurement of new motorcycles and computers. He emphasised that the budgets to be evaluated are procurement of goods unrelated to food. Thus, spending on the free nutritious meals programme is guaranteed to be truly effective and efficient.
After one month, the government will recalculate oil prices and their impact. “So we can take appropriate policy. You trust me, I’m quite clever,” he said.
The option of cutting MBG spending was previously disclosed by Purbaya during an iftar meal with journalists at his office on 6 March 2026. This step was taken to curb the state budget deficit resulting from the surge in global oil prices.
At that time, Purbaya explained that based on calculations by the Finance Ministry, if oil prices breach US$92 per barrel, the state budget would face a deficit of around 3.6–3.7 per cent of gross domestic product (GDP).
He stated that Indonesia had previously experienced global oil prices surging to US$150–200 per barrel. That condition did not cause the economy to immediately collapse but slowed it.
Global oil prices breached the US$100 per barrel level on Monday, 9 March 2026. At the same time, at early trading, the Indonesian Composite Index (IHSG) fell 2.79 per cent to 7,374. This decline coincided with the rupiah weakening to Rp17,000 per US dollar at the opening of Monday trading.