Government seeks “efficiency” in school meal spending as state expenditure surges and deficit widens.
Indonesia has slashed the 2026 budget ceiling for its flagship Makan Bergizi Gratis (MBG) free nutritious meal programme by Rp 67 trillion, after President Prabowo Subianto instructed officials to tighten management and improve spending efficiency.
MBG Ceiling Cut From Rp 335 Trillion To Rp 268 Trillion
Finance Minister Purbaya Yudhi Sadewa said on May 19 that the budget ceiling for the Makan Bergizi Gratis programme in the 2026 state budget (APBN) has been reduced from Rp 335 trillion to Rp 268 trillion, a cut of Rp 67 trillion. He described the move as following President Prabowo’s instruction to ensure MBG funds are used “more effectively and efficiently” by the Badan Gizi Nasional (BGN). As of April 30, MBG disbursements reached Rp 75 trillion—22.4 per cent of the original Rp 335 trillion allocation—covering 61.96 million beneficiaries and 27,952 nutrition service units (SPPG).
Further Savings Possible As Management Reviewed
Purbaya signalled that additional savings in the MBG budget could follow, though he did not offer details. He said Prabowo is reviewing how the programme is managed and how BGN spends its funds. “The President is calculating how best to make savings without disrupting the programme’s effectiveness in feeding schoolchildren. That is the key,” Purbaya said, suggesting that design and implementation tweaks are under consideration rather than a rollback of the policy goal.
State Spending Surges, Deficit Edges Up
The cut comes amid a sharp rise in state expenditure. Total government spending grew 34.3 per cent year on year to Rp 1,082.8 trillion by April 30, equivalent to 28.2 per cent of the full‑year APBN target of Rp 3,842.7 trillion. Central government outlays jumped 51.1 per cent to Rp 826 trillion, as the Finance Ministry deliberately front-loaded disbursements to smooth spending across the year. Ministry/agency (K/L) expenditures rose 57.9 per cent to Rp 400.5 trillion, while non‑K/L spending grew 45.2 per cent to Rp 425.5 trillion.
Revenue Growth Lags Behind Spending
On the revenue side, state income increased 13.3 per cent to Rp 918.4 trillion, creating a budget deficit of Rp 164.4 trillion by end‑April, or 0.64 per cent of gross domestic product. While still modest in percentage terms, the gap reflects the strain of financing ambitious programmes like MBG alongside other spending priorities. Economists have warned that investor concerns over widening deficits and populist spending promises have contributed to pressure on the rupiah, adding urgency to efforts to show that flagship schemes are administered prudently.
Balancing Nutrition Goals With Fiscal Credibility
For Indonesians and Singaporeans, the MBG budget cut illustrates the political and fiscal balancing act facing Prabowo’s administration: maintaining high‑profile social programmes, such as free nutritious meals for students, while convincing markets that spending is disciplined and well‑targeted. Whether the revised Rp 268 trillion envelope can still deliver the programme’s nutrition and attendance goals—and how transparently BGN tightens its management—will shape public trust at home and investor confidence abroad as Indonesia navigates a more volatile economic environment.
Indonesia’s decision to trim the MBG school meal budget by Rp 67 trillion underlines both a pledge to improve efficiency and the fiscal pressures of rapid spending growth and a rising deficit. For Indonesians and Singaporeans, it signals that even flagship programmes are not immune to recalibration as Jakarta seeks to balance social ambitions with the hard arithmetic of sustaining economic stability and currency confidence.
Sources: Batampos (2026) , Jawa Pos (2026)
Keywords: MBG Rp 335 Trillion To 268 Trillion, Badan Gizi Nasional, APBN KiTa May 2026, State Expenditure Growth, 0.64 Percent Deficit, 61.96 Million Beneficiaries
