MBG Under Fitch Spotlight, Airlangga: It Is a Long-Term Investment Programme

Jakarta, VIVA – Coordinating Minister for Economic Affairs, Airlangga Hartarto, responded to the scrutiny by rating agency Fitch Ratings of the Makan Bergizi Gratis (MBG) programme. Fitch assessed that increasing social spending, including MBG, could add pressure on the government’s fiscal space, and thus they included it as one of the notes revising the outlook for Indonesia’s debt rating from stable to negative. Airlangga responded by saying that the MBG Programme is a long-term investment programme that can yield economic and social impacts for Indonesia. “That (MBG) is an investment, and many countries do it. Even the United States does it,” Airlangga said in the Tanah Abang area, Central Jakarta, on Thursday, 5 March 2026. He also referred to several studies from the World Bank and the Rockefeller Foundation, which show that each one dollar of investment in the MBG programme could generate economic benefits of up to seven dollars. The programme has also been implemented in various countries, including the United States, as part of investments in human capital development. “Thus this is a long-term and medium-term challenge that we cannot eliminate the long term just for the short term,” he said. In its report, Fitch estimated Indonesia’s fiscal deficit in 2026 at around 2.9 percent of gross domestic product (GDP). Budget pressure is driven, among other things, by increased government spending, including the free nutritious meals programme, which is projected to reach around 1.3 percent of GDP. Although the outlook was downgraded, Fitch kept Indonesia’s debt rating at BBB or still within investment grade. The agency noted that Indonesia’s macroeconomic stability remains relatively maintained, with a moderate government debt ratio.