Indonesia Reduced 2027 Free Nutritious Meals Budget to IDR 174 tn

Indonesia Reduced 2027 Free Nutritious Meals Budget to IDR 174 tn 

Indonesia's House Budget Committee said the 2027 Free Nutritious Meals (MBG) budget was reduced to IDR 174 tn from IDR 268 tn, reflecting adjustments to the number of nutrition service centers (SPPG) and beneficiaries. The revised allocation also includes related health spending for stunting and maternal nutrition. The reduction follows an earlier cut from IDR 335 tn to IDR 268 tn to improve fiscal efficiency. As of 30 Apr-26, the program had disbursed IDR 75 tn, reaching 61.96 mn beneficiaries through 27,952 SPPG facilities. (CNN) 

Indonesia Set Deadline to Reform Customs Agency 

Finance Minister Purbaya Yudhi Sadewa gave Indonesia's Customs and Excise Directorate (DJBC) until Sep-26 to complete internal reforms following President Prabowo Subianto's ultimatum. Failure to deliver meaningful improvements could lead to DJBC's dissolution, with customs inspection potentially outsourced to Société Générale de Surveillance (SGS) from Swiss. Authorities continue to investigate under-invoicing and illegal imports, including alleged violations within Jakarta Customs. The government said legal action could be pursued if misconduct is proven, underscoring efforts to strengthen customs governance and enforcement. (Kontan) 

Govt. Discussed IDR 381 tn SAL Placement with Himbara 

The House of Representatives' Commission XI held a closed-door meeting with Himbara to discuss the placement of IDR 381 tn in Budget Surplus Balance (SAL) funds aimed at supporting banking liquidity and credit distribution. Discussions covered liquidity management, lending challenges, and the planned withdrawal of the funds in Dec-26. Management of Himbara banks stated that the funds have been directed toward productive sectors, including SMEs, SOEs, and private businesses, while maintaining prudent lending practices. (Kontan)