Indonesian Political, Business & Finance News

Pekanbaru Mayor Says Free Nutritious Meal Programme Boosts Local Revenue

| Source: DETIK Translated from Indonesian | Economy
Pekanbaru Mayor Says Free Nutritious Meal Programme Boosts Local Revenue
Image: DETIK

Pekanbaru Mayor Agung Nugroho stated that the Free Nutritious Meal Programme (MBG) is one of the factors driving an increase in the city’s Locally Generated Revenue (PAD). According to Agung, Pekanbaru’s PAD has experienced a significant increase, rising from around Rp 800 billion to approximately Rp 1.2 trillion. “This increase in PAD is certainly influenced by many factors. One of them is the ongoing Free Nutritious Meal Programme. This programme has an impact on economic turnover in the region,” Agung said on Tuesday (23/6/2026). He explained that the most noticeable impact comes from the food and beverage tax sector as well as several regional levies related to community economic activity. “Especially on food and beverage taxes and levies. In fact, revenue from food and beverage tax in the first quarter rose by 32 per cent. With this programme, economic activity has increased, thereby contributing to regional revenue,” he clarified. Additionally, Agung assessed that the MBG programme also creates a multiplier effect for Pekanbaru’s economy. The programme’s presence encourages the opening of new jobs and increases community business activity. “The economic dynamism emerging from this programme is quite good. Many sectors are moving, and that has an impact on adding jobs for the community,” he said. When asked about the possibility of a decline in school canteen revenue due to the MBG programme, Agung confirmed that this situation has not occurred in Pekanbaru. According to him, students continue to make transactions at school canteens even after receiving free nutritious meals from the government programme. “There is no significant decline. School children still shop at the canteen. They still buy snacks, drinks, and other necessities available at the canteen,” Agung revealed. He expressed hope that various government programmes capable of moving the community’s economy can continue to run, providing broader benefits for both citizens’ welfare and regional revenue growth. “We hope the economy continues to grow. When economic activity increases, the impact will also be felt by the community and the regional government through an increase in PAD,” he concluded.

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