Indonesian Political, Business & Finance News

Procuring Weapons and Free Nutritious Meal Programme: Finance Minister Reveals Secret to State Budget Stability

| | Source: REPUBLIKA Translated from Indonesian | Economy
Procuring Weapons and Free Nutritious Meal Programme: Finance Minister Reveals Secret to State Budget Stability
Image: REPUBLIKA

Finance Minister Purbaya Yudhi Sadewa has ensured that all strategic government programmes, ranging from the procurement of main weaponry systems (alutsista) to the Free Nutritious Meal (MBG) programme, have been meticulously calculated to avoid burdening the State Budget (APBN). Purbaya emphasised that the government continues to maintain the budget deficit below the maximum limit of three per cent of Gross Domestic Product (GDP).

“We have calculated the budget; the deficit is below 3 per cent of GDP,” said Purbaya after attending the handover of several aerial defence systems by President Prabowo Subianto to the Commander of the TNI at Halim Perdanakusuma Air Force Base, Jakarta, on Monday (18/5/2026).

According to him, the public does not need to worry about the sustainability of national financing. Purbaya stated that the government has formulated fiscal policy carefully so that all priority programmes can proceed without disrupting development in other sectors.

“Everything has been well-calculated, including the MBG and other programmes, without interfering with other development projects. We have managed it well, including subsidies for various sectors, such as fuel,” he added.

Purbaya explained that the procurement of strategic weaponry currently being received by the TNI was actually designed and budgeted during the administration of President Joko Widodo, while Prabowo served as the Minister of Defence.

During the event, President Prabowo symbolically handed over several strategic defence assets to TNI Commander Agus Subiyanto, including Dassault Rafale fighter jets, Dassante Falcon 8X aircraft, Airbus A400M Atlas aircraft, GCI GM403 radar, Smart Weapon Hammer, and Meteor missiles. The assets handed over consisted of six Rafale units, four Falcon 8X units, and one Airbus A400M Atlas MRT. The procurement contract for 42 Rafale units was signed in February 2022, with deliveries commencing gradually in early 2026.

Purbaya emphasised that disciplined fiscal management is the key to ensuring that the defence modernisation agenda and the government’s social programmes can run side-by-side without compromising each other’s budgets.

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