Nandito Putra, Jakarta – The Institute for Development of Economics and Finance (INDEF) has urged the Indonesian government to exercise caution in allocating the massive budget for the Free Nutritious Meal (MBG) program.
In the 2026 Draft State Revenue and Expenditure Budget, the MBG allocation reaches Rp335 trillion, nearly 10 percent of total state expenditure.
Izzudin Al Farras, Head of INDEF's Center for Digital Economy and SMEs, warned that such a large allocation could reduce funding for other essential sectors.
"Roughly, the MBG program alone consumes almost 10 percent of the 2026 Draft State Budget, not just Rp335 trillion, but also affects the health, village cooperatives, and SMEs budget," Izzudin said during a public discussion titled Assessing the 2026 Draft State Budget on Thursday, September 4, 2025.
Izzudin also criticized the program's implementation. In just eight months, more than 4,000 students suffered food poisoning after consuming MBG meals.
"The victims of food poisoning cannot be considered mere statistics. These problems stem from weak planning and supervision," he added.
He stressed that the large budget raises public concerns about the program's effectiveness. Beyond mass poisoning incidents, MBG has also faced challenges in food distribution management.
To mitigate risks, Izzudin suggested a gradual rollout of MBG to simplify monitoring and evaluation. "If implemented nationwide without limited trials, the risk of budget leakage and implementation failure will increase," he said.
He urged the government to review MBG by learning from other countries, such as Brazil, which have adopted more cost-effective and efficient practices. Limited implementation in select regions can reduce fiscal strain while testing the program's effectiveness before a national expansion.
"With gradual implementation and initial limited coverage, fiscal capacity will not be pressured solely to fund the MBG program," Izzudin added.
Indonesia's National Nutrition Agency (BGN), responsible for MBG execution, countered that the program is not merely a fiscal burden.
BGN Head Dadan Hindayana stated that the Rp335 trillion budget for 2026 will target nutritional interventions for pregnant women, breastfeeding mothers, toddlers, early childhood education (PAUD) students, and high school students.
"Assuming the beneficiaries number 82.9 million, we are expediting the process. Currently, 19,000 SPPG partners still need to be evaluated for eligibility," Dadan said at the Antara Heritage Center, Central Jakarta, on Tuesday, August 19, 2025.
As of August 2025, 5,905 Unit of Nutrition Fulfillment Service (SPPG) kitchens have been established, serving 20.5 million beneficiaries. Dadan added that public and private investment in kitchen construction reached Rp12 trillion, with the program's economic turnover projected at Rp50 trillion.
– Ninis Chairunnisa contributed to the writing of this article.
Source: https://en.tempo.co/read/2046312/indef-warns-rp335-trillion-mbg-budget-could-strain-fiscal-capacit