Indonesian Political, Business & Finance News

State Secretary Confirms Possible Reduction in Free Nutritious Meal Programme Budget

| Source: CNBC Translated from Indonesian | Economy
State Secretary Confirms Possible Reduction in Free Nutritious Meal Programme Budget
Image: CNBC

State Secretary Prasetyo Hadi has confirmed the possibility of a reduction in the budget for the Free Nutritious Meal (MBG) programme. This aligns with the government’s ongoing efforts to improve governance and efficiency.

“If the question concerns the MBG budget, the Finance Minister (Purbaya Yudhi Sadewa) has also stated that after the management improvement process at the National Nutrition Agency (BGN) and after data validation, there is a possibility that the MBG budget requirement will decrease,” Prasetyo said at the Presidential Palace complex in Jakarta on Tuesday (21/7/2026).

Previously, Purbaya also confirmed cuts to the programme’s budget, which was valued at Rp268 trillion. However, Purbaya intends to meet with the leadership of the BGN first. “I want to meet the Head of MBG this week to see what his final strategy will be for this year. But clearly, there is a possibility of a reduction,” Purbaya stated at the State Palace in Jakarta, as quoted on Tuesday (21/7/2026).

Deputy Head of the National Nutrition Agency Agustina Arumsari was not yet able to disclose the specific figure for the budget reduction. However, she confirmed the budget would be far lower than the initial amount. “I cannot mention the figure yet, but it is clear it is not Rp268 trillion; it has been significantly reduced. But because the process is still ongoing, I cannot mention the number yet,” Agustina said at the Presidential Palace complex in Jakarta on Monday (20/7/2026).

Agustina explained that the budget reduction is in line with ongoing governance improvements, including seeking fairer schemes and refocusing. President Prabowo Subianto has given one month to find solutions to improve the governance of the MBG programme to make it more efficient.

Regarding plans to reduce the defence budget, Prasetyo said it is currently only a consideration, if needed. “Yes, it is a possibility. Possibility means if the situation requires it, it might be done,” Prasetyo said. He added that the country’s fundamental economic and fiscal conditions remain quite strong. The current year’s budget deficit issue will also be managed by reducing unproductive spending.

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