En Naen Media – Chairman of the House Budget Committee (Banggar DPR RI), Said Abdullah, confirmed their approval of the Rp71 trillion budget allocation for the free nutritious meal program proposed by Prabowo Subianto-Gibran Rakabuming Raka. He emphasized that this allocation does not disrupt the fiscal balance.
“Rp71 trillion is allocated for the well-being of the general public, notwithstanding existing social assistance, subsidies, and compensations amounting to nearly Rp570 trillion. In my view, this budget makes sense and does not disturb our fiscal stability,” Said told reporters at the Parliament Complex, Senayan, Jakarta, on Tuesday (25/6/2024).
The PDIP politician mentioned that the next step involves determining which ministry will manage this budget, which falls under the authority of the government.
“The issue now lies with which ministry—whether it’s the Ministry of Social Affairs, the Ministry of Education, or the Ministry of Health—that the government will designate,” Said explained.
He also assured that their oversight would continue regarding the implementation of the Rp71 trillion budget for the free nutritious meal program.
“Indeed, while granting flexibility does not mean the DPR will not oversee. Oversight is inherent,” Said emphasized.
Earlier, economist from the Center of Economic and Law Studies (Celios), Nailul Huda, assessed that the initial allocation of Rp71 trillion in the first year is only a small portion of the overall target. His prediction is that Prabowo Subianto’s flagship program could require up to Rp450 trillion to cover all targets.
As of now, the agreed-upon state budget stands at Rp71 trillion, representing approximately 1.83-1.91% of the national budget. Huda also estimated that the program’s full implementation for free nutritious meals for all students, students, and pregnant women could reach Rp450 trillion.
House Budget Committee Agrees on Rp71 Trillion Budget for Prabowo’s Nutritious Meal Program, Deemed Fiscally Sound
However, Huda expressed doubt that the program could achieve its full targets, considering the nation’s fiscal capacity limitations.
“I estimate that during the first term of Prabowo-Gibran’s administration, the free lunch program will only reach 50% of its target. Even until 2029, its full implementation may only achieve 50%, given the current fiscal constraints and the maximum fiscal deficit limit of 3% of GDP,” he explained.
Huda added that reallocating budgets and additional income would be necessary to support the full implementation of this program, with a projected deficit of at least Rp586 trillion.
“Even though it’s only 1.83-1.91% of the national budget, the allocation for free nutritious meals could impact other budget allocations and potentially affect the economy, such as reducing energy subsidies that could lead to increased inflation and decreased purchasing power,” he elaborated.
Previously, Finance Minister Sri Mulyani Indrawati explained that the Rp71 trillion budget allocation for the Free Nutritious Meal Program (MBG) or free lunch would be phased in according to the 2025 State Revenue and Expenditure Budget (RAPBN).
“Regarding the priority program of free nutritious meals, we have communicated with President-elect Prabowo Subianto and his team to provide clarity on how this program will fit into the 2025 RAPBN,” Sri Mulyani said in a press conference at the Directorate General of Taxation office, Jakarta, on Monday (24/6/2024).
She acknowledged that Prabowo had agreed to the initial allocation of Rp71 trillion for the free nutritious meal program in his first year of office, starting in 2025.
