Indonesian Political, Business & Finance News

Pekanbaru Mayor Says Free Nutritious Meals Programme Boosts Local Revenue

| Source: TEMPO_ID Translated from Indonesian | Economy

Pekanbaru Mayor Agung Nugroho has stated that the Free Nutritious Meals Programme (MBG) is one of the factors driving an increase in Pekanbaru City’s Locally Generated Revenue (PAD). The figure has risen from around Rp800 billion to approximately Rp1.2 trillion. “This increase in PAD is certainly influenced by many factors. One of them is the ongoing Free Nutritious Meals Programme. This programme has an impact on economic turnover in the region,” Agung said on Tuesday, 23 June 2026. He explained that the most noticeable impact comes from the food and beverage tax sector and 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. Furthermore, Agung assessed that the MBG programme has also created a multiplier effect for Pekanbaru City’s economy. The programme’s presence has encouraged the opening of new job opportunities and increased community business activity. “The economic dynamism emerging from this programme is quite good. Many sectors are moving, and that has an impact on adding job opportunities for the community,” he said. Regarding the possibility of a decline in school canteen income due to the MBG Programme, Agung asserted 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 impact of decline. School children still shop at the canteen. They still buy snacks, drinks, and other necessities available at the canteen,” Agung revealed. He hopes that various government programmes capable of moving the community’s economy can continue to run, thus providing broader benefits, both for the welfare of residents and for increasing regional revenue. “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.”

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