Indonesian Political, Business & Finance News

State Palace Hints MBG Budget Could Decrease After Governance Overhaul

| Source: DETIK Translated from Indonesian | Economy
State Palace Hints MBG Budget Could Decrease After Governance Overhaul
Image: DETIK

Minister of State Secretary (Mensesneg) Prasetyo Hadi has spoken out about budget efficiency in the Free Nutritious Meal (MBG) programme. He opened up the possibility that the budget will decrease following a large-scale evaluation of the programme’s implementation.

“So, regarding the MBG budget, the Finance Minister has also said there is a possibility (of a reduction),” Prasetyo said at the Presidential Palace complex in Jakarta on Tuesday (21/7/2026).

Prasetyo did not specify the exact figure of the reduction. However, he revealed the possibility of the budget falling after improvements to beneficiary data and the incentives for MBG kitchens.

“After the repair process in the management or leadership of the National Nutrition Agency, and after the data validation process, there is a possibility that the MBG budget requirement will decrease,” he said.

The National Nutrition Agency (BGN) is currently improving the implementation of MBG. Deputy Head of BGN Agustina Arumsari said the agency’s budget will be substantially reduced after the restructuring and governance improvements.

“It is automatic — the efficiency will automatically follow. As for the figure, I cannot mention it for now, but what is clear is that it is no longer Rp 268 trillion, it has decreased significantly. Because the process is still ongoing, I cannot state the number yet,” Agustina said at the Presidential Palace complex in Central Jakarta on Monday (20/7).

Initially, the BGN’s budget this year reached Rp 335 trillion, but it was cut to Rp 268 trillion. Around 93 per cent of the budget is used for the MBG programme.

Agustina said the calculation of the efficiency results is still ongoing. The agency has been given one month to resolve all the problems occurring in the government’s priority programme, MBG.

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