TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa will monitor the efficiency of the Free Nutritious Meal (MBG) budget after global oil prices crossed US$100 per barrel. The government will monitor the impact of the global oil price hike for the next month.
However, he stated that this step does not necessarily mean budget cuts. "So, the MBG [budget] will not be cut, except for those that are not productive," said Purbaya during a visit to Tanah Abang Market, Jakarta, on Monday, March 9, 2026.
The state treasurer explained that unnecessary budgets will be re-evaluated. For example, the procurement of new motorcycles and computers. He emphasized that the budget to be evaluated is for the procurement of items unrelated to food. Thus, spending on the free nutritious meal program is ensured to be effective and efficient.
After a month, the government will reassess oil prices and their impact. "So that we can make appropriate policies. You believe me, I am quite smart," he said.
The option to cut MBG expenditures was previously mentioned by Purbaya during a joint fast-breaking with journalists at his office on March 6, 2026. This step was taken to curb the state budget deficit due to the surge in world oil prices.
At that time, Purbaya explained that based on Ministry of Finance calculations, if the oil price crossed US$92 per barrel, the state budget deficit would be around 3.6-3.7 percent of the gross domestic product (GDP).
He stated that Indonesia previously experienced a surge in world oil prices to US$150-200 per barrel. This condition did not cause the economy to collapse, but slowed it down.
Global oil prices crossed above US$100 per barrel on Monday, March 9, 2026. Concurrently, at the start of trading, the IHSG (Composite Stock Price Index) dropped by 2.79 percent to 7,374. This decline is in line with the rupiah, which plummeted to Rp17,000 per US dollar at the opening of trading on Monday.
Read: Indonesia: No Fuel Price Hike Until Eid Despite Crude Oil Surge
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