MBG Budget Efficiency Continues, Rupiah Closes Stronger at Rp 17,922 per US Dollar
The rupiah exchange rate against the US dollar strengthened at the end of the week, amid the government’s narrative of considering further budget efficiency for the Free Nutritious Meals (MBG) programme. The MBG is indeed one of the government’s priority programmes that consumes a massive budget, thereby affecting the State Revenue and Expenditure Budget (APBN) deficit condition. Consequently, the programme has become the fiscal policy most scrutinised by the market.
Citing Bloomberg, the rupiah reversed course to strengthen by 21 points or 0.12 percent to the level of Rp 17,922 per US dollar at the close of trading on Friday (26/6/2026). At the start of trading, the Garuda Currency had briefly weakened sharply towards the level of Rp 17,990 per US dollar, nearly touching Rp 18,000 per US dollar again, as had occurred in early June 2026.
‘The market responded positively to the government considering further efficiency and budget cuts for the flagship MBG programme to maintain fiscal stability,’ said Currency and Commodities Observer Ibrahim Assuaibi in a statement to reporters on Friday (26/6/2026).
On the other hand, Bank Indonesia (BI) also strengthened its market intervention aggressively through three main lines: the spot market, Domestic Non-Deliverable Forward (DNDF), and the Government Securities (SBN) market, as an effort to dampen volatility and prevent the rupiah’s depreciation, which had recently approached its all-time low above Rp 18,000 per US dollar.
‘What the market needs now is a clear anchor of expectations that exchange rate stability remains the top priority, supported by close coordination between monetary and fiscal policy,’ he explained.
It is known that Minister of Finance Purbaya Yudhi Sadewa revealed the National Nutrition Agency (BGN) is preparing the continuation of budget efficiency for its programme. The efficiency plan was conveyed directly by Head of BGN Nanik S Deyang during a meeting with him at the Ministry of Finance Office in Jakarta on Thursday (25/6/2026).
Purbaya has not yet disclosed the amount of the MBG budget to be saved again. However, he mentioned the figure is quite significant.
‘Yesterday I met the Head of BGN. She came here and reported that there will be further savings from the MBG programme. I think it is quite significant, but let the Head of BGN announce it later,’ said Purbaya during a Media Briefing agenda at the Ministry of Finance Complex in Jakarta on Friday (26/6/2026).
Although further cuts will be made, Purbaya assured that the savings implemented by BGN will not affect the menu portions of the MBG programme.
‘No (change), it remains the same. So it is actually ensured that the food remains nutritious. We’ll see, I am not a nutritionist. What is clear is that the human resources are being improved. If I am not mistaken, they will hire more nutritionists there,’ Purbaya clarified.