RAPBN 2026 Focuses On MBG, CSIS Says The Hospitality Industry Is Getting Contracted

JAKARTA - The center for Strategic and International Studies (CSIS) of Indonesia assessed that the posture of the 2026 RAPBN which focuses on the Free Nutrition Food (MBG) program can deepen the growth contraction of a number of industrial sectors, one of which is hospitality.

Researcher from the Department of Economics at the Center for Strategic and International Studies (CSIS) Riandy Laksono explained that the current government budget has been diverted to support MBG projects, such as the agricultural sector and food and beverage services.

The efficiency of central government spending launched to continue in 2026 is also a factor that strengthens this view.

"The money has been withdrawn from sectors such as construction and hospitality, because people are no longer allowed to travel in service, infrastructure has also decreased. So, the construction and hospitality sector has contracted," said Riandy in a media briefing entitled RAPBN 2026: Considering Political Promises in the Middle of Fiscal Constraints, monitored online, Monday, August 18.

According to Riandy, the contribution of the construction and hospitality sector to the country's economic growth has now also decreased.

Based on the data displayed, the hotel sector accounted for around 0.215 percent of economic growth in the second quarter of 2024, then sloped 0.003 percent in the second quarter of 2025.

On the other hand, food and beverage services show growth throughout the year and can continue with a record of disbursement problems aka MBG disbursement can be overcome.

He explained that currently the new MBG budget disbursement is IDR 8 trillion from the allocation of IDR 71 trillion in 2025. According to Riandy, to spur overall economic growth, the government needs to allocate it back for the hotel sector.

"In times of difficult economics, the important thing is that the money is pouring down. This is the most important thing, because we want to help the people. It's not that the money is in the government's pocket. Why are we holding back during difficult times like this," explained Riandy.

As of July 2025, the National Nutrition Agency (BGN) has absorbed a budget of IDR 7.9 trillion from the State Budget.

The amount of the absorbed budget will continue to increase. The reason is, the amount of the absorbed budget is targeted to reach IDR 59 trillion in November.