MBG Program Boosts Village Economy

By: Samantha Rashid

The Free Nutritious Meals (MBG) program launched by the government is not just an initiative to improve children’s nutritional intake, but also a driving force for the rural economy. With an increasingly large allocation of funds, this program is expected to be able to create a more independent economic ecosystem at the village level, while reducing the gap between urban and rural areas.
The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, emphasized that with the MBG program, the village fund budget has increased significantly. If previously the average village fund was at IDR 1.1 billion per year, now with this program, this amount can increase to IDR 6-8 billion per village. This increase directly opens up opportunities for more equitable economic growth because the circulation of funds will be greater in the villages. He also added that this program contributes to economic efficiency at the village level, allowing local communities to maximize their potential.
The main challenge of this program lies not in funding, but in optimal management. For this reason, the government has discussed with various parties, including the Rockefeller Foundation, to find the most appropriate model for implementing this program. By reflecting on the experiences of other countries such as South Korea and India, MBG is expected to be a sustainable and effective program in improving people’s welfare.
The government has also made various efforts so that this program can run optimally. Chairman of the Advisory Board of the Indonesian Chamber of Commerce and Industry (Kadin), Hashim Djojohadikusumo revealed that President Prabowo Subianto has decided to increase the MBG budget by IDR 100 trillion. With this addition, the total MBG budget this year will be IDR 171 trillion. According to calculations made by the National Development Planning Agency (Bappenas), with an initial budget of IDR 71 trillion which is estimated to run out in October, economic growth can increase by 0.83 percent.
With the new additional budget, economic growth is predicted to reach 2 percent. This shows that the MBG program is not only beneficial in terms of food security, but also becomes a major stimulus for the national economy. This program is seen as a real step in accelerating economic equality by encouraging domestic production, especially from the agricultural and livestock sectors that will supply food needs for this program.
In addition, the implementation of the MBG program also encourages the formation of a more inclusive economic ecosystem in rural areas. With the increasing need for food to support this program, villages that were previously only consumers are now transforming into active producers in the national supply chain. This change not only reduces dependence on distribution from the city, but also increases employment opportunities for local communities.
For example, the impact of this program has been felt by business actors at the village level in West Nusa Tenggara (NTB). The Head of the NTB Industry Service, Nuryanti, explained that the MBG program creates high demand for various food ingredients produced by village communities. From the agricultural sector to the livestock sector, this program provides opportunities for Micro, Small and Medium Enterprises (MSMEs) and Small and Medium Industries (IKM) to be involved in the supply chain of nutritious food ingredients.
With the large daily need for eggs, chicken, vegetables, and other commodities, business actors in villages have a greater opportunity to increase their production capacity. In addition to increasing demand, this program also provides encouragement for local governments to improve the quality and competitiveness of local products. In NTB, for example, the NTB Packaging Center has been prepared to assist MSMEs in packaging healthy kitchen spices with a more attractive appearance. Thus, village products not only function to meet the needs of the MBG program, but can also be introduced to a wider market. This step is in line with the government’s strategy to develop local industries to be highly competitive. The implementation of this program certainly requires time and various adjustments. However, the government’s optimism remains high in ensuring its success. Many parties invite the entire community to actively participate in supporting MBG, because this program is not only the government’s responsibility, but also requires the involvement of the community and business actors. With the synergy between the central government, regions, MSMEs, and the wider community, this program will be able to bring about significant changes, both in terms of health and economy.