Free Nutritious Meals Budget Not Subject to Efficiency Cuts
The Coordinating Minister for the Economy, Airlangga Hartarto, has announced that the government will implement budget efficiency measures across ministries and agencies whilst maintaining the 2026 state budget deficit below set thresholds. However, flagship programmes, including the Free Nutritious Meals (MBG) scheme, will not be cut.
Hartarto stated that nutritious meals represent a long-term investment. “Priority programmes remain unchanged. All will continue because they represent long-term investment,” he said during an iftar meal with media representatives at the office of the Coordinating Ministry for the Economy in Jakarta on Monday, 16 March 2026.
According to Hartarto, President Prabowo Subianto has instructed the government to maintain the budget deficit below 3 per cent of Gross Domestic Product (GDP). He has also coordinated with ministries and agencies to calculate the extent of government expenditure that will be reduced.
The total budget to be saved has not been finalised and will be determined by President Prabowo. “However, we, together with the Finance Minister and several ministers from major agencies, have prepared what can be made more efficient,” he said.
Previously, proposals to increase the state budget deficit had surfaced to address the predicted prolonged impact of the Iran-Israel conflict. However, in an exclusive interview with Bloomberg titled “Prabowo Open to Breach Indonesia Deficit Cap Only During Crisis”, Prabowo described the fiscal deficit limit as a tool that helps the government remain cautious in formulating and implementing budget policy.
Senior economist at Bright Institute, Awalil Rizky, stated that President Prabowo’s desire for greater fiscal prudence, if implemented consistently, would help address some challenges. However, it is unlikely to be sufficient for current conditions.
Other available options with more measurable risks include cutting large-budget priority programmes. These programmes include MBG, Village Red and White Cooperatives, defence equipment procurement, and special allocation expenditure. If necessary, the government bureaucracy could be restructured, such as reducing the number of ministries and agencies. “Increasing deficits and incurring large debts is not the right choice,” Rizky said.
This year, the government has allocated Rp335 trillion for MBG, an increase compared to last year’s Rp71 trillion. The substantial free nutritious meals funding in 2026 is being used to pursue a target of 82.9 million beneficiaries.
As of 9 March 2026, the Finance Ministry reported that Rp44 trillion of the Free Nutritious Meals (MBG) programme budget had been spent. This allocation has reached 61.62 million beneficiaries.