Fitch Worried MBG Burdens the State Budget, Airlangga: Rockefeller Says It Generates
Jakarta, CNBC Indonesia - The Indonesian government has responded to the concerns of international rating agencies, Fitch Ratings, about the free nutritious meals programme (MBG), which they say will burden the state budget in the long term.
As is known, the concern was part of Fitch Ratings’ consideration in revising Indonesia’s rating outlook from stable to negative, with the sovereign credit rating currently at BBB, or investment grade.
Coordinating Economic Minister Airlangga Hartarto said, contrary to Fitch Ratings’ assessment, the World Bank and the Rockefeller Institute of Government view government investment in MBG as adding sevenfold value to Indonesia’s economy.
“Well, if several studies by the World Bank and by the Rockefeller Foundation show that with mass and well-run MBG implementation a 1 dollar investment yields 7 dollars,” Airlangga said at the Menara Batavia complex, Jakarta, Thursday (5 March 2026).
Therefore, rather than treating MBG as a burden on the national budget, the government sees it as a long-term investment to strengthen the capacity of human resources. He added that many countries have implemented the programme.
“So it is an investment and many countries do it. Even the United States does it, so this is a long-term and medium-term challenge that cannot be eliminated for the short term,” he asserted.
Fitch Ratings had previously announced a revision of the outlook for Indonesia’s debt rating to negative from previously stable.
Meanwhile, Indonesia’s debt rating itself, based on the latest assessment in March 2026, remains BBB, i.e., investment grade.
“This outlook revision reflects the increasing policy uncertainty and the erosion of consistency and credibility of Indonesia’s policy mix amid rising centralisation of policy-making authority. It could weaken medium-term fiscal prospects, damage investor sentiment, and place pressure on external reserves,” according to the official statement. Wednesday (4 March 2026).