Purbaya Calculates MBG Could Contribute Over 1% to Economic Growth

Finance Minister Purbaya Yudhi Sadewa believes the Free Nutritious Meals (MBG) programme will make a significant contribution to Indonesia’s economy, particularly in terms of employment and economic growth. Purbaya calculates that MBG is estimated to absorb up to one million workers. Based on this assumption, the contribution to economic growth could reach 2%. This calculation refers to the technical estimates of the Central Statistics Agency (BPS), namely that every 1% economic growth can absorb around 450,000 workers. “With this input, the growth is this much, how many jobs? If I’m not mistaken, the latest figure I know is that 1% equates to 450,000 jobs. So if it’s one million, it’s a little over 2%. Roughly that’s just from MBG,” he said during a media discussion at the Ministry of Finance in Central Jakarta on Tuesday (7/6/2026). If recalculated, Purbaya sees the possibility that the absorption of new workers from MBG will not reach the full maximum of 2%, because there is a chance that workers will ‘shift’ or move from other sectors. However, he is confident that its contribution remains significant. “But then there will also be people moving there, right, that becomes a reduction, so not the full 2%, but because some move there from elsewhere, who previously moved to other places, counted in the GDP of other places, now to MBG,” said Purbaya. He insists that the impact of MBG on Indonesia’s economic growth could reach more than 1%, net. “I think more than 1% impact will be visible if implemented well. Net, yes, net. Not gross like before,” emphasised Purbaya.