Yesterday's Economy: MBG Budget Cut and Subsidised Fuel Prices Not Raised

Jakarta – A number of economy-related events occurred on Tuesday, 19 May 2026, which remain timely for review on Wednesday morning. These include the trimming of the Makan Bergizi Gratis (MBG) programme budget and the decision not to increase subsidised fuel prices, despite the rupiah weakening. The following is a curated summary of notable news items.

Government trims MBG budget to Rp268 trillion in 2026

The government reduced the MBG programme ceiling in the State Budget (APBN) for the 2026 fiscal year from Rp335 trillion to Rp268 trillion. Finance Minister Purbaya Yudhi Sadewa, speaking at a May 2026 APBN KiTa press briefing in Jakarta on Tuesday, explained that the decision follows President Prabowo Subianto’s instruction to ensure MBG funds are managed more efficiently.

Lead debottlenecking, Purbaya approves Rp200 million for fish production capacity research at Lake Toba.

Finance Minister Purbaya Yudhi Sadewa approved Rp200 million for a research fund to study the capacity of fish production at Lake Toba.

Gojek terminates GoRide Hemat subscription programme for driver partners.

GoTo Gojek Tokopedia’s ride-hailing platform will end the GoRide Hemat subscription scheme for driver partners, according to CEO Hans Patuwo at a Jakarta press conference.

Airlangga: High dollar demand weighs on rupiah to around Rp17,700 per USD.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that strong demand for US dollars is a major factor in the rupiah weakening to around Rp17,700 per dollar. He cited global factors and high dollar demand during the Hajj period.

Indonesia will not raise subsidised fuel prices despite rupiah weakness.

Energy and Mineral Resources Minister Bahlil Lahadalia said the government will not raise the prices of subsidised fuels, such as Pertalite and Biosolar, despite Indonesian crude oil price increases and a weakening rupiah.