Prabowo and National Economic Council Discuss Rupiah Weakness and Free Meal Programme Cuts

President Prabowo Subianto summoned National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan and members Muhammad Chatib Basri, Septian Hario Seto, and Mochammad Firman Hidayat to the Presidential Palace. Chatib Basri stated that DEN provided a special report on macroeconomic developments and warned of the rupiah’s depreciation against the US dollar, which hit Rp 18,201 on Monday, 8 June 2026. He noted the weakening exchange rate would directly impact the lower middle class. ‘We conveyed that one important issue to watch is the risk of price increases that could occur due to the rupiah’s weakening,’ Chatib said. Beyond flagging the exchange rate risk, DEN suggested the government cut spending on large-scale projects, including the free nutritious meal programme (MBG), to restore public trust. ‘What must be done includes growing confidence and trust in the government. One step is budget efficiency, including in relation to MBG,’ said the former finance minister under President Susilo Bambang Yudhoyono. Luhut added that the council discussed evaluating MBG governance and optimising public service digitalisation through government technology (govtech), noting nearly 80 per cent of govtech systems were connected across eight ministries and agencies as of 1 June using AI. Septian Hario Seto reported that an independent survey on the MBG supply chain using random sampling found 86.9 per cent of operating SPPG units had only one small supplier. ‘On average, an SPPG partners with three MSMEs,’ he said. House Deputy Speaker Sufmi Dasco Ahmad confirmed the meeting focused on economic strategy and growth, not a cabinet reshuffle, despite speculation that Chatib Basri might replace Purbaya Yudhi Sadewa as State Treasurer amid the rupiah’s slide.