The National Economic Council (DEN) held a meeting with President Prabowo Subianto at the Istana Merdeka in Jakarta on Tuesday, June 9, 2026, to discuss the current state of the national economy and the implementation of the Makan Bergizi Gratis (MBG) program. The council, led by Luhut Binsar Pandjaitan, also presented reports on GovTech integration, the development of an international financial center in Bali, and strategies to address under-invoicing in commodity sectors.
Status of the Makan Bergizi Gratis (MBG) Program
The MBG program is shifting toward a localized supply chain model, according to DEN member Hario Seto. An independent survey of 800 random locations found that 86.9% of the program’s meal centers (SPPG) rely on small-scale local MSMEs rather than large suppliers. Seto noted that 65% of these MSMEs are located within the same regency as the meal centers they serve, and 99% of the workforce involved are local residents.
Did You Know? The MBG program has already completed pilot projects in 42 regencies and cities, with officials reporting a successful model in Banyuwangi that could lead to a national rollout across 514 districts by October 2026.
Digitalization and GovTech Implementation
Luhut Binsar Pandjaitan reported that the government plans to integrate digital systems through GovTech, which will connect with the Ministry of Finance’s national single window. This initiative aims to capture tax data from 64 million MSMEs. Luhut stated that bringing these businesses into the tax system could potentially raise the national tax ratio from approximately 9% to between 12% and 13%.
Expert Insight: The push for GovTech integration marks a significant shift in fiscal strategy. By digitizing MSME participation, the government is attempting to broaden the tax base without necessarily raising rates, potentially creating fiscal space to lower taxes or fund job creation programs in the future.
Economic Stability and Global Risks
DEN member Mochammad Firman Hidayat characterized Indonesia’s current economic fundamentals as healthy, citing low corporate dollar debt and a banking capital adequacy ratio above 25%. However, he cautioned that the country remains vulnerable to global uncertainties, specifically the duration of international conflicts which may impact energy prices and exert pressure on the Rupiah.
To mitigate these risks, the council suggested strengthening foreign exchange reserves. Strategies include increasing the quality of migrant workers to boost remittances and expanding tourism, which currently lags behind regional peers like Vietnam and Thailand in total visitor numbers.
Addressing Illegal Mining and Under-Invoicing
The council has identified significant “under-invoicing” practices in commodity trading, amounting to billions of dollars in losses, according to Hario Seto. To combat this, the government is utilizing the SIMBARA system (Mineral and Coal Mining Monitoring System). The system employs AI and automated blocking features to ensure traceability, requiring all coal and crude palm oil (CPO) shipments to originate from legal, verified sources.
Frequently Asked Questions
What is the goal of the GovTech implementation?
The primary goal is to digitize government data and improve tax collection by registering 64 million MSMEs, which officials believe could significantly increase the national tax ratio.
How is the Makan Bergizi Gratis program impacting local economies?
The program is creating new supply chains by sourcing food from local MSMEs within the same regency as the meal centers, while employing 99% local staff, according to DEN data.
What measures are being taken to curb illegal mining?
The government is using the SIMBARA system, which uses AI and automated blocking to enforce traceability, ensuring that commodities like coal and CPO are sourced from legal mines.
How might the government’s focus on increasing foreign exchange through tourism and remittances affect your local economic sector?
