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Home Indonesia

Finance minister indicates additional budget for free meal program

WNAM: by WNAM:
January 30, 2025
in Indonesia
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Finance minister indicates additional budget for free meal program
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WNAM REPORT: Finance Minister Sri Mulyani Indrawati has signaled a grant for an additional budget for the Free Nutritious Meal Program (MBG) to Rp100 trillion (US$5.9 billion).

“The budget for the MBG program will be increased from Rp71 trillion (US$4.2 billion) to Rp100 trillion. I hope this can generate a multiplier effect for small and medium businesses throughout Indonesia,” she remarked at the 2025 BRI Microfinance Outlook in Tangerang on Thursday.

According to Indrawati, the government has decided to carry out budget efficiency to optimize the allocation of state spending to ensure effective utilization of the state budget for public benefit.

Indrawati stated that through this approach, the government will prioritize programs and projects that directly engage with the community, including the MBG program.

“This program aims to provide sufficient nutrition for our children so they can carry out learning activities properly,” the minister explained.

She noted that the program represents a long-term investment requiring a substantial budget, targeting 82.9 million beneficiaries.

The target was originally to be achieved by the end of 2025, but following presidential directives, it has been expedited to September 2025.

Indrawati has instructed the Financial System Stability Committee (KSSK), including the Financial Services Authority (OJK) and Bank Indonesia (BI), to encourage financial institutions to support this program’s success.

Financial institutions are expected to facilitate credit access for companies involved in the program to support the operation.

“We will continue to support, starting from the National Nutrition Agency (BGN) and other ministries and institutions, to continue to adjust their programs to ensure the implementation of the MBG program,” she stated.

Earlier, BGN head Dadan Hindayana emphasized that Prabowo’s acceleration request resulted in an additional Rp100 trillion budget for the MBG program.

“This was due to the president’s request to accelerate this program. He once asked us how much it costs to reach 82.9 million beneficiaries. We then provided that figure,” he remarked last week.

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