Fitch Ratings Soroti MBG, Airlangga Sebut Investasi Jangka Panjang

JAKARTA - The free nutritious meal program (MBG) is one of the highlights in the latest report by Fitch Ratings which revised the outlook for Indonesia's debt rating from stable to negative.

The rating agency assessed that the increase in government social spending, including the MBG program, has the potential to add pressure to the fiscal space.

Coordinating Minister for the Economy Airlangga Hartarto emphasized that the free nutritious meal program is a long-term investment that can provide economic and social benefits for Indonesia.

Airlangga explained that a number of international studies show that community nutrition fulfillment programs can have a significant economic impact in the long term.

"MBG, if there are several studies from the World Bank and the Rockefeller Foundation, that if the implementation of MBG is good and massive, one dollar of investment can generate seven dollars. So it is an investment and many countries are doing it," he told the media, Thursday, March 5.

He added that the program has also been implemented in a number of countries, including the United States, as part of the human resource development strategy.

According to him, the challenges of medium and long-term development cannot be ignored just for the sake of short-term interests.

"This MBG is just starting, so if it goes on, we will continue to roll it out," he said.

In its report, Fitch Ratings estimates Indonesia's fiscal deficit in 2026 will be around 2.9 percent of gross domestic product (GDP).

The pressure on the state budget is assessed to come from, among other things, an increase in government spending, including the free nutritious meal program which is estimated to reach around 1.3 percent of GDP.

Despite revising the outlook to negative, Fitch still maintains Indonesia's debt rating at the BBB level, which is still in the investment-worthy category.

The institution assessed that Indonesia's macroeconomic stability is still quite well maintained, supported by a relatively moderate government debt ratio and an economic growth outlook that is still considered strong.

Airlangga assessed that this showed that Indonesia's economic fundamentals were still relatively strong. "The important thing is that Indonesia remains investment grade. In the future, of course, what Fitch's warning is, we will learn, it is to remind Indonesia what we must learn in the future," he said.