Fact Check: Did Prabowo Secure Foreign Loans to Fund MBG, Village Cooperatives?

August 19, 2026 | 10:18 am

TEMPO.CO, Jakarta – Several posts claim that Indonesia has secured new loans totaling over Rp500 trillion from South Korea and Japan. These loans are alleged to be intended for funding the Free Nutritious Meal (MBG) program and the Red-and-White Village Cooperative (KDMP).

The posts feature a photograph of President Prabowo Subianto shaking hands with South Korean President Lee Jae-myung. This narrative has been circulating widely on Facebook [archived] and TikTok since August 6, 2026.

"President Prabowo has officially accepted loan funds from Korea and Japan to continue the MBG and village cooperative programs," the posts state. Some accounts also claim that Indonesia's accumulated government debt has surpassed Rp15,000 trillion.

Is it true that Indonesia is securing loans from South Korea and Japan to finance the MBG and KDMP programs?

FACT CHECK

Tempo verified the content through a reverse image search and by consulting credible sources. The Indonesian government has indeed secured investment commitments totaling IDR 574 trillion from South Korea and Japan. However, these funds are not intended to finance the MBG or KDMP programs.

Investment Commitments from Japan and South Korea

The Coordinating Ministry for Economic Affairs and Tempo have reported investment commitments from South Korea totaling Rp173 trillion. These investments are allocated to the energy and green transition sectors, industry and manufacturing, the digital economy, and the development of the Bumi Serpong Damai area in South Tangerang, Banten.

Meanwhile, investments from Japan amounting to IDR 401 trillion target the oil and gas sector—specifically the Masela Block project—financial services and financial inclusion, as well as the creative and manufacturing industries. The MBG and KDMP projects are not included in the list of investment targets for either country.

Photo Unrelated to MBG and KDMP Loans

The photo showing President Prabowo shaking hands with President Lee Jae-myung originated from the Kompas.com TikTok account, indicated by the presence of the media outlet's logo. The original footage captures the moment President Prabowo received condolences from President Lee regarding the deaths of three Indonesian National Armed Forces (TNI) soldiers in Lebanon due to an Israeli attack. These condolences were conveyed during Prabowo's visit to South Korea on Wednesday, April 1, 2026.

Allocation of MBG and KDMP Funds

The Indonesian government allocates the MBG budget from the education sector. In the 2027 State Budget (APBN), out of a total education budget of Rp820.9 trillion, Rp240 trillion is allocated for the MBG program. Meanwhile, the financing for the construction of KDMP facilities in 2026 is sourced from bank loans extended to PT Agro Industri Nasional (Agrinas). Pursuant to Presidential Instruction Number 17 of 2025 regarding the Acceleration of KDMP Establishment, the bank loan ceiling is set at a maximum of Rp3 billion per unit, with an annual interest rate of 6 percent.

Data from the Ministry of Finance's Directorate General of Budget Financing and Risk Management (DJPPR) records Indonesia's total government debt at Rp10,293.69 trillion—not Rp15,000 trillion. Finance Minister Purbaya Yudhi Sadewa claims that the debt ratio remains at a safe level, below 60 percent of the Gross Domestic Product (GDP).

However, Harris Turino, a member of Commission XI of the House of Representatives (DPR RI), has highlighted the concerning debt figure. In 2025, Indonesia is required to service debt amounting to Rp1,400 trillion, representing nearly half of the total state revenue of Rp2,765 trillion. This obligation comprises approximately Rp599 trillion in interest payments and over Rp800 trillion in principal repayments.

CONCLUSION

Tempo's verification concludes that the narrative claiming the circulating image shows the granting of loans totaling Rp500.5 trillion from South Korea and Japan to Indonesia is misleading.

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