Muhammad Farhan, Addin Anugrah Siwi, Jakarta – Finance Minister Purbaya Yudhi Sadewa clarified on Tuesday that the reported return of Rp 70 trillion ($4.2 billion) in unused funds by the National Nutrition Agency (BGN) for the Free Nutritious Meal (MBG) program did not come from the official state budget but from an additional funding proposal that was never approved.
The clarification was necessary to address public confusion, as earlier reports had suggested the funds were part of the 2025 state budget allocation for the MBG program. Purbaya added that the government is still finalizing the official budget for the nationwide free meal initiative, which remains one of Prabowo's flagship programs.
"BGN returned Rp 100 trillion from the funds they had requested earlier, but that amount was never officially budgeted. So technically, the money doesn't exist yet," Purbaya said after the APBN KiTa press conference at the Djuanda I Building in Jakarta.
He said the government is currently monitoring the disbursement of the Rp 71 trillion already allocated in the 2025 state budget for the MBG program.
"The Rp 71 trillion is the real budget. We'll see how much is absorbed by year-end. It's a good program, so we should ensure the implementation gets even better. I'll review it again by the end of October," Purbaya said.
The BGN this year received an official allocation of Rp 71 trillion, plus a Rp 100 trillion standby fund proposal to expand program coverage, bringing the total indicative MBG budget to Rp 171 trillion. However, projections show only Rp 99 trillion will be realized by year-end, leaving Rp 70 trillion unutilized.
BGN head Dadan Hindayana confirmed that the unused amount was returned to President Prabowo Subianto, as the agency anticipated it would not be absorbed in 2025.
"This year, BGN received Rp 71 trillion, plus Rp 100 trillion in standby funds. Of the total, Rp 99 trillion was utilized, while Rp 70 trillion was returned to the President due to possible underutilization this year," Dadan said in a written statement on Tuesday.
Deputy Finance Minister Suahasil Nazara added that, as of early October, the program had reached about 31.2 million beneficiaries across Indonesia, with a disbursement of Rp 20.6 trillion, or 29 percent of the Rp 71 trillion total.
"The distribution has already spread nationwide, from Sumatra, with 6.6 million recipients, to Java, Kalimantan, and other regions," Suahasil noted.
Looking ahead, the government has allocated a massive Rp 268 trillion for BGN in the 2026 budget, making it one of the largest funding recipients under the Prabowo-Gibran administration.
Dadan said the total support could reach Rp 335 trillion when including an additional Rp 67 trillion in reserve funds.
"The government remains fully committed to the MBG program. The 2026 allocation, Rp 268 trillion plus Rp 67 trillion in reserves, ensures sustainable implementation," Dadan said.
He added that the sizable funding reflects the program's scope, which will serve 82.9 million beneficiaries nationwide.
"For many ministries, that figure equals their annual budget but for us at BGN, it covers just one day's needs," Dadan said.
Source: https://jakartaglobe.id/business/purbaya-says-rp-70-trillion-mbg-returned-fund-was-never-budgete