Finance Minister Purbaya Sees Room for Efficiency in Free Nutritious Meals Programme Budget of Rp335 Trillion

Jakarta — Finance Minister Purbaya Yudhi Sadewa has stated there remains room for efficiency improvements in the Free Nutritious Meals Programme (MBG), which has received a budget allocation of Rp335 trillion.

Purbaya acknowledged that the MBG is a worthwhile programme as it assists many citizens, particularly those from lower-income groups. However, he maintained that the programme’s implementation could still be further optimised.

“We will improve the efficiency of MBG, in the way they spend. I think MBG is a good programme because not everyone is wealthy. It’s just that the implementation needs to be optimised,” Purbaya told reporters at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday.

He expressed the view that the MBG programme could operate effectively without having to fully absorb the Rp335 trillion budget allocation.

“I don’t think it needs to be Rp335 trillion,” he said.

The Finance Minister is currently developing a budget efficiency plan across various ministries and institutions (K/L) as part of efforts to keep the 2026 State Budget deficit below three per cent. The 2026 budget deficit risks widening due to pressure from global oil prices, which have been affected by the conflict involving Iran, the United States and Israel.

Purbaya explained that budget efficiency efforts will primarily focus on the Additional Cost Budget (ABT) allocation within each ministry and institution. According to him, the ABT allocations have significantly contributed to budget inflation and represent a potential area for spending cuts.

The State Treasurer noted that the Ministry of Finance will determine the initial steps that agencies should take in preparing their budget efficiency plans. This preparation is expected to take approximately one week.

“However, execution is not guaranteed. In terms of where cuts should be made, they will adjust their policies based on the Finance Ministry’s recommendations,” Purbaya explained.

Any decision on changes to budget design will continue to monitor developments in global oil prices in the coming period.