Collaboration between the Government and MSMEs Maximizes Economic Benefits in the Free Nutritious Meal Program

By: Dhita Karuniawati )*

The government is currently focusing on realizing the main objective of the Free Nutritious Meal (MBG) priority program to create a brilliant generation by fulfilling balanced nutrition for school children. MBG is also expected to boost the local economy or local community. Collaboration with MSMEs is believed to be able to maximize the economic benefits in the MBG program.

There are four objectives of the MBG program, namely preparing superior resources, reducing stunting rates, reducing poverty rates and driving the community economy so that the ideals of Indonesia Emas 2045 are achieved.

The government is targeting the MBG program to reach three beneficiaries during January-March 2025. The targeted beneficiaries consist of toddlers, Islamic boarding school students, PAUD, TK, SD, SMP, SMA students, pregnant women and breastfeeding mothers.

The funds budgeted by the government for the MBG program are IDR 71 trillion, and will likely be increased by IDR 140 trillion for the next period. With the large budget allocated, the local economy is expected to be lifted if the community kitchens are handed over to Micro, Small and Medium Enterprises (MSMEs) or managed by cooperatives where MBG is implemented.

Not only in terms of preparing logistics and food distribution, MBG food waste also has the potential to become a circular economy such as compost and maggot industry if managed properly by the Nutrition Fulfillment Service Unit (SPPG) in each region.

With a fund of IDR 71 trillion, the MBG program is believed to be able to improve the regional economy because it involves local residents in providing local raw materials at each SPPG. There will be at least 937 SPPGs in 26 provinces by the end of January 2025.

These SPPGs are expected to be able to buy food necessities from local traders, such as fruit, vegetables, eggs, milk, meat, fish and rice. As much as possible, utilize local commodities produced in their respective regions.

Kitchen staff or cooks at SPPG who come from local residents can bring more benefits to the local community. SPPG can also utilize existing kitchens, such as MSME kitchens or shared kitchens owned by the community.

Utilizing this kitchen can save budget and reduce distribution costs because the kitchen is close to the school. With low costs, the funds can be used to add a more varied menu.

Not only does it move money in the area concerned, MBG also has another multiplier effect, namely the absorption of labor.

The increasing demand for food orders can have an impact on the addition of cooks, food delivery people to people who are tasked with helping to prepare food packaging.

Researcher at the Center of Reform on Economic (CORE) Indonesia, Eliza Mardian said that MBG can create a multiplier effect for local communities, from the welfare of producers to the absorption of labor.

The absorption of new jobs is very possible, especially for housewives who do not have an income. The surrounding community who initially did not have jobs will have the opportunity to work in the kitchen or help distribute food from the kitchen to schools.

Similarly, Spokesperson for the Presidential Communications Office Ujang Komarudin said that the benefits of the MBG Program are not only felt by beneficiary groups, such as school children, pregnant women, breastfeeding mothers or toddlers. But there are other strategic benefits in the form of economic multiplier effects from the program.

Ujang explained that President Prabowo Subianto’s direction, the MBG Program has a great opportunity to involve Regional and Village-Owned Enterprises (BUMD and BUMDes), MSMEs and cooperatives in improving the national economy.

The MBG Program provides an opportunity for around 28,000 MSMEs, cooperatives, BUMDes, BUMDs, to develop and increase their production capacity.

The National Development Planning Agency (Bappenas) predicts that the MBG Program can increase Indonesia’s economic growth by 0.86% in the first year. Economists estimate that every one percent of economic growth can mean the absorption of hundreds of thousands of workers.

To facilitate the execution of orders, logistics distribution to payment systems, of course, it is necessary to have a special institution that can accommodate MSMEs or local residents. In this case, cooperatives can take on their role.

The government is currently focusing on realizing the main objective of the Free Nutritious Meal (MBG) priority program to create a brilliant generation by fulfilling balanced nutrition for school children. MBG is also expected to boost the local economy or local community. Collaboration with MSMEs is believed to be able to maximize the economic benefits in the MBG program.

There are four objectives of the MBG program, namely preparing superior resources, reducing stunting rates, reducing poverty rates and driving the community economy so that the ideals of Indonesia Emas 2045 are achieved.

The government is targeting the MBG program to reach three beneficiaries during January-March 2025. The targeted beneficiaries consist of toddlers, Islamic boarding school students, PAUD, TK, SD, SMP, SMA students, pregnant women and breastfeeding mothers.

The funds budgeted by the government for the MBG program are IDR 71 trillion, and will likely be increased by IDR 140 trillion for the next period. With the large budget allocated, the local economy is expected to be lifted if the community kitchens are handed over to Micro, Small and Medium Enterprises (MSMEs) or managed by cooperatives where MBG is implemented.

Not only in terms of preparing logistics and food distribution, MBG food waste also has the potential to become a circular economy such as compost and maggot industry if managed properly by the Nutrition Fulfillment Service Unit (SPPG) in each region.

With a fund of IDR 71 trillion, the MBG program is believed to be able to improve the regional economy because it involves local residents in providing local raw materials at each SPPG. There will be at least 937 SPPGs in 26 provinces by the end of January 2025.

These SPPGs are expected to be able to buy food necessities from local traders, such as fruit, vegetables, eggs, milk, meat, fish and rice. As much as possible, utilize local commodities produced in their respective regions.

Kitchen staff or cooks at SPPG who come from local residents can bring more benefits to the local community. SPPG can also utilize existing kitchens, such as MSME kitchens or shared kitchens owned by the community.

Utilizing this kitchen can save budget and reduce distribution costs because the kitchen is close to the school. With low costs, the funds can be used to add a more varied menu.

Not only does it move money in the area concerned, MBG also has another multiplier effect, namely the absorption of labor.

The increasing demand for food orders can have an impact on the addition of cooks, food delivery people to people who are tasked with helping to prepare food packaging.

Researcher at the Center of Reform on Economic (CORE) Indonesia, Eliza Mardian said that MBG can create a multiplier effect for local communities, from the welfare of producers to the absorption of labor.

The absorption of new jobs is very possible, especially for housewives who do not have an income. The surrounding community who initially did not have jobs will have the opportunity to work in the kitchen or help distribute food from the kitchen to schools.

Similarly, Spokesperson for the Presidential Communications Office Ujang Komarudin said that the benefits of the MBG Program are not only felt by beneficiary groups, such as school children, pregnant women, breastfeeding mothers or toddlers. But there are other strategic benefits in the form of economic multiplier effects from the program.

Ujang explained that President Prabowo Subianto’s direction, the MBG Program has a great opportunity to involve Regional and Village-Owned Enterprises (BUMD and BUMDes), MSMEs and cooperatives in improving the national economy.

The MBG Program provides an opportunity for around 28,000 MSMEs, cooperatives, BUMDes, BUMDs, to develop and increase their production capacity.

The National Development Planning Agency (Bappenas) predicts that the MBG Program can increase Indonesia’s economic growth by 0.86% in the first year. Economists estimate that every one percent of economic growth can mean the absorption of hundreds of thousands of workers.

To facilitate the execution of orders, logistics distribution to payment systems, of course, it is necessary to have a special institution that can accommodate MSMEs or local residents. In this case, cooperatives can take on their role.