The Indonesian government has reduced the budget for its Free Nutritious Meals (MBG) program in the 2026 State Budget (APBN), lowering the allocation from Rp335 trillion (US$18.4 billion) to Rp268 trillion (US$14.7 billion).
Finance Minister Purbaya Yudhi Sadewa announced the decision during a press conference on Tuesday, stating that the cut follows a directive from President Prabowo Subianto to improve the efficiency of MBG fund management.
As of April 30, budget disbursements for the program reached Rp75 trillion (US$4.1 billion). These funds have benefited 61.96 million recipients and supported 27,952 Nutrition Fulfillment Service Units (SPPG), also known as MBG kitchens.
Prioritizing Efficiency and Effectiveness
Minister Purbaya noted that current spending represents 22.4 percent of the original Rp335 trillion allocation. However, he emphasized that the budget will not remain at that initial level as the government seeks more effective use of National Nutrition Agency (BGN) funds.
“The President is working out the best way to achieve savings without disrupting the effectiveness of the school feeding program. That is what matters most,” Purbaya said.
While the current reduction has been finalized, the Finance Minister signaled that further budget cuts to the MBG program could be possible, though no additional details were provided.
Broader State Budget Trends
The adjustment to the MBG program comes amid a broader surge in state spending. As of April 30, 2026, total state spending rose by 34.3 percent to Rp1,082.8 trillion (US$59.6 billion), representing 28.2 percent of the total 2026 State Budget target of Rp3,842.7 trillion (US$211.5 billion).
Central government spending increased by 51.1 percent to Rp826 trillion (US$45.4 billion). According to Purbaya, this reflects a strategy to distribute government spending more evenly throughout the calendar year.
Other notable spending increases include:
- Ministry and agency spending: Increased 57.9 percent to Rp400.5 trillion (US$22 billion).
- Non-ministry/institution spending: Rose by Rp45.2 trillion (US$2.4 billion) to reach Rp425.5 trillion (US$23.4 billion).
On the revenue side, state income grew by 13.3 percent to Rp918.4 trillion (US$50.5 billion). This resulted in a state budget deficit of Rp164.4 trillion (US$9 billion), or 0.64 percent of gross domestic product (GDP), as of April 30, 2026.
Potential Future Developments
Moving forward, the government may continue to refine the management of the MBG program to further increase spending efficiency within the BGN. Depending on the results of these efficiency measures, the administration could implement additional budget adjustments to further lower costs.
Frequently Asked Questions
What is the new budget for the Free Nutritious Meals (MBG) program?
The budget has been cut from Rp335 trillion (US$18.4 billion) to Rp268 trillion (US$14.7 billion) in the 2026 State Budget.
How many people have received benefits from the MBG program so far?
As of April 30, the program has benefited 61.96 million recipients.
What is the current state budget deficit?
As of April 30, 2026, the state budget deficit is Rp164.4 trillion (US$9 billion), which is 0.64 percent of the gross domestic product (GDP).
How should a government balance the need for fiscal savings with the goal of maintaining essential social programs?
