Tag:

Purbaya

News

Free Nutritious Meals’ Budget Realization Reaches Rp36.6tn in Early 2026

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Indonesia’s Ministry of Finance reported on February 21, 2026, that Rp36.6 trillion – 10.9 percent – of the Rp335 trillion budget allocated to the free nutritious meal (MBG) program has been realized.

Expansion of the Program

The number of individuals benefiting from the MBG program continues to grow. As of February 23, 2026, 60.24 million recipients were being served, an increase from 53.8 million at the conclude of 2025. This represents significant expansion from the start of 2025, when 549,000 people were served by 246 kitchens.

Did You Know? In early 2025, the MBG program operated with 246 kitchens, but by February 2026, it had expanded to over 23,678 Nutrition Fulfillment Service Units (SPPGs) across the country.

Budget Concerns and Potential Reallocation

Despite the program’s expansion, concerns have been raised regarding budget absorption. Finance Minister Purbaya Yudhi Sadewa previously suggested the possibility of reallocating funds from the 2026 MBG budget, which has increased significantly from Rp71 trillion in the previous year.

Minister Sadewa expressed doubt that the full budget would be utilized, stating that even doubling the previous year’s spending would not reach Rp300 trillion. He indicated a willingness to identify efficiencies and potentially redirect funds, although ensuring President Prabowo Subianto’s program continues to operate effectively.

Expert Insight: The potential for budget reallocation highlights the complexities of implementing large-scale social programs. Balancing ambitious goals with fiscal responsibility often requires difficult decisions about resource allocation and program efficiency.

The 2026 MBG budget aims to reach 82.9 million beneficiaries. However, the Ministry of Finance reported that by December 31, 2025, only 72.5 percent of the target was met, with Rp51 trillion absorbed throughout the year.

Frequently Asked Questions

What is the current budget realization for the MBG program?

As of February 21, 2026, Rp36.6 trillion, or 10.9 percent, of the Rp335 trillion budget for the MBG program has been realized.

How has the number of beneficiaries changed?

The number of beneficiaries has increased from 53.8 million at the end of 2025 to 60.24 million as of February 23, 2026.

Was there discussion about potentially changing the budget?

Finance Minister Purbaya Yudhi Sadewa had floated the idea of reallocating the 2026 MBG budget, citing concerns about full budget absorption.

As the MBG program continues to evolve, will the focus shift towards maximizing efficiency alongside expanding access to nutritious meals?

0 comments
0 FacebookTwitterPinterestEmail
News

Ideal Tax Ratio Figure for Indonesia Difficult to Determine, Says Minister Purbaya

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

Indonesia’s Finance Minister Purbaya Yudhi Sadewa acknowledged on Monday, February 9, 2026, that determining an ideal tax ratio for the 2026 State Budget remains a challenge. He stated that the country’s tax structure is “rigid,” making rapid adjustments difficult.

Tax Ratio Challenges

According to Minister Purbaya, there is no clear answer to what the ideal tax ratio should be, admitting, “It’s hard to determine the ideal figure, I don’t understand.” He noted that Indonesia’s tax ratio has remained largely unchanged for decades despite increasing government expenditures.

Did You Know? Indonesia’s tax ratio plummeted to 8.42 percent in the first half of last year, approaching levels seen during the Covid-19 pandemic in 2020-2021.

While acknowledging the difficulties, Purbaya indicated that an 11-12 percent tax ratio would be sufficient to support the State Budget, with 11-11.5 percent considered preferable. He emphasized that increasing the tax ratio will require significant effort, including upgrades to existing systems and changes in the conduct of tax officials.

The government is currently aiming to raise the tax ratio from around 9 percent to 11-12 percent this year. Success, Purbaya explained, depends not only on economic growth but also on the effectiveness of the tax system and the integrity of those administering it.

Historical Fluctuations

Indonesia’s tax ratio has seen fluctuations in recent years. It stood at 10.08 percent in 2024, then decreased to around 9 percent in 2025. Prior to that, the ratio rose to 10.39 percent in 2022 and 10.31 percent in 2023, driven by tax reforms and strong commodity prices.

Expert Insight: The Minister’s acknowledgement of the difficulty in raising the tax ratio highlights the complex interplay between economic conditions, systemic challenges, and the require for behavioral changes within the Ministry of Finance to achieve fiscal goals.

Despite the recent weakening of the tax ratio, Purbaya expressed optimism that internal improvements within the Ministry of Finance – including employee rotation, strengthened management, and administrative improvements – could help boost revenue collection in 2026.

Frequently Asked Questions

What is Indonesia’s current tax ratio target?

The government is aiming to raise the tax ratio from around 9 percent to 11-12 percent this year.

Why is it difficult to determine an ideal tax ratio?

According to Finance Minister Purbaya Yudhi Sadewa, Indonesia’s tax structure has high rigidity, making it difficult to change the tax ratio quickly.

What steps is the Ministry of Finance taking to improve the tax ratio?

The Ministry of Finance is implementing internal improvements, including employee rotation, strengthening management, and administrative and supervisory system improvements.

As Indonesia navigates these fiscal challenges, will internal improvements within the Ministry of Finance be enough to achieve the targeted increase in the tax ratio?

0 comments
0 FacebookTwitterPinterestEmail