Prabowo Criticises Double Standards of MBG Critics, Highlights Transfer Pricing

President Prabowo Subianto has launched a sharp critique against parties who accuse the Free Nutritious Meals (MBG) programme of being a waste of the budget. Prabowo questioned why far larger economic leakages, such as transfer pricing and under-invoicing, receive minimal scrutiny from experts.

"Feeding Indonesian children, pregnant women, and the elderly is considered wasteful. But thousands of trillions that evaporate, that leave Indonesian soil every year for 34 years, there is no comment. No expert protests," Prabowo said at the State Palace in Jakarta on Monday (20/7).

The President explained that transfer pricing and under-invoicing are manipulations carried out by companies to shift profits to countries with low tax rates. These actions aim to minimise the tax burden of business groups but are highly detrimental to the state due to the significant loss of potential tax and customs revenue.

On the other hand, Prabowo lamented the negative narrative directed at the MBG programme. He noted that some parties predicted the economy would collapse and the Rupiah exchange rate would weaken as a result of the programme.

"But we want to feed children, at least a quarter of whom are clearly stunted. Most also do not eat at school. We are accused of waste, we are told the economy will collapse, share prices will crash, the currency will weaken," he stressed.

Prabowo revealed that data regarding economic leakages through falsified trade reports and smuggling came from various international institutions, not compiled unilaterally by the government.

The President added that the government remains convinced the MBG programme is part of the constitutional mandate to improve public welfare. He emphasised that national economic policy is based on Article 33 and Article 34 of the 1945 Constitution, which oblige the state to manage the economy for the people’s prosperity and to care for the poor and abandoned children.

This statement was delivered during the mid-year Plenary Cabinet Session, which serves as an evaluation forum for the performance of the Red and White Cabinet, ahead of the President’s state address in August 2026.