Indonesia Finance Minister Purbaya Announces Fiscal Measures and Tackles MBG Program Issues

Finance Minister Purbaya Yudhi Sadewa said the government will cut the budgets of ministries, agencies or regions that do not follow the Satgas Debottlenecking decisions aimed at speeding up investment. He also announced a new injection of Rp75‑100 trillion into state‑owned banks (Himbara), part of a total Rp400 trillion of surplus‑budget funds intended to boost liquidity, credit flow and growth. On tax policy, Purbaya pointed out that restitutions reached about Rp160 trillion by April 2026 and warned of possible misconduct by tax officials, especially in export‑VAT refunds. Regarding the free nutritious‑meal program (MBG), he met BGN chief Nanik Deyang to discuss tighter budget oversight, efficiency improvements and expansion to remote areas, while noting that a budget‑refocusing plan is under review. Former Economic Adviser Luhut Binsar Pandjaitan highlighted MBG’s economic turnover of more than Rp120 trillion and its job‑creation potential, but said benefits remain uneven. Purbaya also dismissed the relevance of global rating agencies as Indonesia pursues panda bonds in China, and expressed optimism that the economy, which grew 5.61 % in Q1 2026, could reach 8 %.

Overall, the minister combined fiscal tightening, liquidity support, tax‑restitution scrutiny and program‑level reforms to strengthen Indonesia’s macro‑economic outlook.