Indonesia's MBG program supports local farmers and commodity stability

Indonesia’s Free Nutritious Meals (MBG) program is being highlighted for its potential to stabilize commodity markets and support local producers. The National Nutrition Agency (BGN) and the Ministry of Trade indicate that the program creates consistent demand for agricultural and livestock products through its regional kitchens.

BGN Head Sudaryono noted that the program provides a reliable market for local goods. In Batu, East Java, he cited an example where the price of local oranges rose from Rp5,000 to Rp14,000 per kilogram due to increased demand from the program. He encouraged farmers and livestock producers to report improvements in demand to demonstrate the program's economic impact.

Trade Minister Budi Santoso stated that the MBG program could help balance supply and demand, particularly for surplus goods. For instance, the program could absorb the nation's 12 percent surplus in egg production. Santoso emphasized that the program acts as a market stabilizer rather than a driver of inflation, noting that commodity prices at local markets have remained relatively stable and within government reference levels.