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🇮🇩 Indonesia /Economy & Trade

Indonesia's Prabowo meets economic council, discusses Rupiah woes and MBG program

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesian President Prabowo Subianto met with the National Economic Council (DEN) on June 10, 2026.
  • The council warned of the Rupiah's depreciation and suggested budget cuts for the Free Nutritious Meal (MBG) program.
  • DEN also discussed evaluating MBG project governance and optimizing government digitalization (govtech).

Indonesian President Prabowo Subianto convened a meeting with the National Economic Council (DEN) on June 10, 2026, to discuss key economic issues. DEN members, including Chair Luhut Binsar Pandjaitan and economist Muhammad Chatib Basri, presented a special report on the macroeconomic situation.

We conveyed that one of the important issues to be considered is the possibility of price increases due to Rupiah weakening.

— Chatib BasriWarning about the impact of the depreciating Rupiah.

A primary concern raised was the risk of the Rupiah depreciating against the U.S. dollar, which had reached Rp18,201 per dollar by June 8. Chatib Basri warned that this weakening exchange rate could directly impact the lower-middle class through potential price increases. To address economic challenges and rebuild public trust, DEN suggested the government consider budget cuts for substantial projects, specifically mentioning the Free Nutritious Meal (MBG) program.

What needs to be done, including building confidence and trust in the government. One of them is the steps taken in budget efficiency, one of which is related to MBG.

— Chatib BasriSuggesting budget cuts for the MBG program to rebuild public trust.

The council also focused on evaluating the governance of MBG projects and enhancing the government's digitalization efforts, known as govtech. Luhut Binsar Pandjaitan noted that as of June 1, nearly 80 percent of govtech initiatives had been integrated across eight ministries and agencies, with data being combined with artificial intelligence. He emphasized govtech's importance for the upcoming Prabowo administration, as it would allow for well-aggregated data.

In the upcoming Prabowo administration, govtech will be an important part because all data will be well aggregated.

— Luhut Binsar PandjaitanHighlighting the significance of govtech.

Further details on the MBG program emerged from an independent survey conducted by DEN. Septian Hario Seto, a DEN member, reported that 86.9 percent of the program's outlets relied on a single small supplier, with an average of three SMEs engaged per outlet. The meeting did not involve discussions about a cabinet reshuffle, according to Deputy House Speaker Sufmi Dasco Ahmad.

On average, there are 3 SMEs engaged by the meal program outlets.

— Septian Hario SetoReporting findings from an independent survey on MBG suppliers.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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