Minister: Free Nutritious Meals Programme budget adjustments limited to non-productive expenditure
Jakarta — Finance Minister Purbaya Yudhi Sadewa has explained that budget adjustments to the Free Nutritious Meals Programme (MBG) will only be applied to non-productive expenditure, whilst spending on food procurement will remain untouched.
“The MBG programme will not be reduced in budget, except for non-productive elements,” Purbaya told journalists in Jakarta on Monday.
The State Treasurer stated that his office would continue to monitor MBG spending realisations on a regular basis. However, the policy approach will not involve budget cuts, but rather ensuring that allocated funds are spent effectively and efficiently.
“We will not cut the MBG budget, but we will ensure that spending is truly effective and efficient,” he said.
Previously, Purbaya had indicated that one available option to mitigate the impact of rising global oil prices is budgetary reallocation across government spending. A number of programme budgets with lower urgency levels could be redirected to meet fiscal health requirements.
He cited the Free Nutritious Meals Programme as an example where budgetary reallocation is possible. The budget shift would not affect the programme’s core function of providing food, but rather supporting activities such as providing motor vehicles for Nutrition Fulfilment Service Units (SPPG).
“The MBG programme is good, but we want to prevent spending on items that don’t directly support food provision, such as vehicle purchases,” the Finance Minister explained at a media briefing at the Ministry of Finance office in Jakarta on Friday, 7 March.
Budgetary reallocation has also been recommended by Bhima Yudhistira, Executive Director of the Centre for Economics and Law Studies (CELIOS). Bhima argued that in the current situation, budgetary reallocation represents a better approach than raising subsidised fuel prices to reduce fiscal pressure.
He recommended that the Government adjust spending on three programmes, including the Free Nutritious Meals Programme (MBG), Village/Neighbourhood Red and White Cooperatives (Koperasi Desa/Kelurahan Merah Putih), and the food estate programme.
Regarding MBG specifically, Bhima noted that scrutiny from global rating agencies Fitch Ratings and Moody’s Investors Service could serve as justification for cutting the programme’s budget.
As context, Brent crude oil prices reached 118 US dollars per barrel for the first time since 17 June 2022. This price is significantly higher compared to the average oil price in January 2026, where Brent crude (ICE) was at 64 US dollars per barrel and US WTI at 57.87 US dollars per barrel.