Indonesia's Free Nutritious Meal Program Spurs Local SME Supply Chains

An independent survey by the National Economic Council (DEN) found that 86.9% of the 800 Satuan Pelayanan Pemenuhan Gizi (SPPG) sites involved at least one micro, small or medium enterprise (UMKM) as a supplier, with an average of three UMKM per kitchen. About 64‑65% of those UMKM operate in the same district as the SPPG, and 99% of SPPG staff are local residents, highlighting the program’s role in creating a new local supply‑chain ecosystem and generating jobs.

President Prabowo Subianto’s recent evaluation of the Makan Bergizi Gratis (MBG) program received praise from the Indonesian Ulema Council, members of parliament and other officials, who called the reforms necessary for maintaining quality and transparency. DEN officials also recommended better access to financing for UMKM to expand capacity and product variety.

Meanwhile, some SPPG kitchens in West Bandung have halted operations because of delayed fund disbursements, temporarily interrupting meal distribution to schools. DEN members raised efficiency concerns, noting potential budget savings and the need to guard against rising costs linked to currency weakness.