MBG Budget Under Threat of Cuts Amid Oil Prices, Says Head of the National Nutrition Agency (BGN)

Jakarta – The government is weighing options to cut the budget for the Makan Bergizi Gratis (MBG) program, which this year is allocated Rp 335 trillion. This step would be among scenarios if a surge in world crude oil prices widens the 2026 state budget deficit beyond the 3 per cent safe threshold.

Responding to the reports, Dadan Hindayana, head of the National Nutrition Agency (BGN), said he had not received any official instruction regarding cuts to the president Prabowo Subianto’s priority program. ‘As of now, there has been no instruction regarding this,’ he told Kontan.co.id on Sunday (8/3/2026). However, Dadan said the agency would cooperate with any fiscal policy decided by the central government, especially in maintaining the stability of the state budget amid global economic uncertainty. He assured BGN would comply with the policy directions set by the government. ‘BGN will carry out whatever is outlined,’ he said.

Earlier, Finance Minister Purbaya Yudhi Sadewa said the government had run a stress test on the possibility that global oil prices could reach an average of $92 per barrel per year due to escalating Iran–Israel and US tensions. The results indicated the budget deficit could widen to 3.6 per cent of GDP if prices stayed at that level for the year. ‘We have exercised that if oil prices average $92 for a year, the deficit would be 3.6 per cent,’ Purbaya told reporters during a Breaking Fast event at the Finance Ministry in Central Jakarta on Friday (6/3/2026). ‘If that happens, we will take steps to prevent it. Where could we cut savings? For example, MBG.’

Nevertheless, Purbaya stressed that any such savings would not affect the main MBG program budget, particularly for providing meals to beneficiaries such as schoolchildren, pregnant women, and the elderly. He said efficiency would be directed at supporting expenditures not directly linked to meal provision. ‘What’s clear is the MBG program is certainly good, but we want to prevent spending that does not directly support meals. For instance, buying motorcycles for all SPPG or computers,’ he explained.