Indonesia's free meal program budget absorption low, Rp1.6 trillion in outstanding payments

Indonesia's National Nutrition Agency (BGN) faced scrutiny over its budget utilization for the 2025 free nutritious meal program, with only 66% of its allocated Rp71 trillion being absorbed. Deputy Head Agustina Arumsari revealed this low realization figure during a hearing with the House of Representatives' Commission IX on Friday. The agency, then led by Dadan Hindayana, had a budget that was not fully utilized, despite a request for additional funding.

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The realization figure was quite low, only 66 percent.

Arumsari expressed confusion regarding the request for more funds when the existing budget was under-absorbed. "In the end, it went unspent, leaving the final realization figure at just 66 percent," she stated. This underutilization led to significant outstanding payments to third parties, totaling Rp1.6 trillion as of the 2025 financial report. The largest portion of these unpaid bills, Rp1.04 trillion, is related to capital expenditure and asset procurement, specifically the construction of kitchens for the free meal program.

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In the end, it went unspent, leaving the final realization figure at just 66 percent.

To address these outstanding obligations, the BGN plans to use a carry-over mechanism through the 2026 Budget Implementation List. Arumsari explained that the process involves revising the budget with the Directorate General of Budget and requires a prior review by the state treasurer. This verification is currently being handled by the agency's internal inspectorate and the Financial and Development Supervisory Agency. Arumsari apologized to the third parties affected by the delay, attributing the hold-up solely to this necessary review process.

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We are in the process of revising the budget with the Directorate General of Budget.