Free Nutritious Meals Programme Spending IDR 1.2 Trillion Daily; BGN Chief Responds to Finance Minister on Efficiency Measures
The Head of the National Nutrition Agency (BGN), Dadan Hindayana, has responded to a proposal by Finance Minister Purbaya Yudhi Sadewa to streamline the Free Nutritious Meals (MBG) programme.
The Finance Minister previously stated that there is scope to reduce the MBG budget allocation due to rising global oil prices, which have surged to USD 100 per barrel (approximately IDR 1,698,740 at the current exchange rate of IDR 16,950).
The escalation in oil prices is placing pressure on the state budget. Without intervention, there are concerns that the budget deficit could reach 3.7 per cent.
“The BGN will implement whatever decision the President makes,” Dadan stated on Monday (9 March 2026).
The proposed efficiency measures for MBG would involve reducing equipment expenses that do not affect food quality for beneficiaries. The 2026 MBG budget allocation has been confirmed at IDR 335 trillion.
“The National Nutrition Agency will manage the IDR 335 trillion budget to reach all beneficiaries across Indonesia, so that next year, God willing, the National Nutrition Agency will disburse IDR 1.2 trillion per day,” Dadan explained.
In addition to MBG efficiency measures, Finance Minister Purbaya is considering the continuation of electric vehicle incentives due to their impact on the state budget. According to him, if the effects of the incentives are positive, they will be continued; if not, they may be reviewed in accordance with the state’s financial capacity.
Purbaya must exercise caution regarding state finances at a time of global uncertainty. The budget could come under pressure if state spending is deployed without due consideration of the broader public interest.
Indonesia’s export sector is also receiving his attention, as maritime shipping, which serves as the primary transport mechanism, is being impacted by rising global oil prices.
“So we will calculate the extent of the impact on the deficit. If it is not too substantial, then there is no issue,” Purbaya concluded.