Purbaya: MBG Generates Tax Revenue of up to 5 Percent of the Budget
JAKARTA - Minister of Finance Purbaya Yudhi Sadewa said that the Free Nutritious Meal (MBG) program not only requires a large budget, but also has a positive impact on tax revenue and economic movement.
Purbaya said that part of the budget spent through the program would return to the country in the form of taxes.
He explained that from the implementation of the program, the potential tax revenue is estimated to be in the range of 3 percent to 5 percent of the total budget realized.
"For MBG, the tax revenue is around 3-5 percent of the total budget realized, 3-5 percent of the total budget realized (directly) goes into taxes," he said in a meeting with Commission XI of the Indonesian House of Representatives, quoted Tuesday, April 7.
Meanwhile, if the total budget reaches Rp335 trillion, the tax revenue generated is estimated to range from Rp10.05 trillion to Rp16.75 trillion.
However, he emphasized that the direct contribution to tax revenue was not the main impact of the MBG program.
According to him, the greater benefits are seen from the increased economic activity after the budget circulates in the community.
Purbaya said that the implementation of this program was also considered capable of encouraging the creation of jobs, especially in the regions, so as to strengthen economic stability at the local level.
He also emphasized that economic stability is one of the important values of this policy, especially in the midst of global conditions full of uncertainty.
"When economic activity is alive, (tax revenue) will be more than that three percent figure, and at the same time in those areas (MBG) creates jobs, it creates stability itself. That is the most expensive impact, the most valuable impact for us," he said.
In addition, Purbaya also responded to public concerns regarding the economic condition by stating that programs such as MBG can help maintain national economic resilience.
"The impact is quite good, it's just that in the future we might improve the way we run the policy," he concluded.