Jakarta (ANTARA) \u2014 Galau D Muhammad, a researcher at the Center of\nEconomic and Law Studies (Celios), said strengthening community-based\nfood supply chains could safeguard food availability and affordability\nwhile expanding market access for farmers, livestock breeders and local\nbusinesses.<\/p>\n
He said rising demand for food on a large scale needed to be matched\nby the development of supplier networks involving local producers, so\nthat the economic benefits could be distributed more widely without\ndisrupting supplies to households.<\/p>\n
\u201cThere are many micro, small and medium-sized enterprise (MSME)\ntraders and livestock breeders who should be integrated proportionately\nat a micro scale,\u201d Galau told ANTARA in Jakarta on Friday.<\/p>\n
He said supply chains could be strengthened through more\ndecentralised procurement models involving communities, traders, and\nfarmers and livestock breeders near areas requiring supplies.<\/p>\n
The approach was important, he said, to enable MSMEs to participate\nin line with their production capacity while strengthening links between\nfood producers and local markets.<\/p>\n
Galau cited the food requirements of the Free Nutritious Meals (MBG)\nprogramme, which have grown as the number of Nutrition Fulfilment\nService Units (SPPGs) has increased.<\/p>\n
He said the scale of procurement posed a challenge for small\nproducers if they had to meet large orders on their own.<\/p>\n
\u201cWhich MSME or small-scale livestock breeder could supply 1,000 to\n1,500 portions for each SPPG?\u201d he said.<\/p>\n
For that reason, he said, the involvement of local businesses needed\nto be planned proportionately, so increased food demand could create\neconomic opportunities without putting pressure on their production\ncapacity.<\/p>\n
Galau also stressed the importance of balancing large-scale\nprocurement needs with the food supplies already available in community\nmarkets.<\/p>\n
He cited a Celios study from May 2026 which found a statistical\nassociation between the addition of 10 Nutrition Fulfilment Service\nUnits and an average food price increase of around 0.08 per cent at\nregency or municipal level.<\/p>\n
The association with price increases for commodities commonly used in\nthe MBG programme was around 0.12 to 0.13 per cent, he added.<\/p>\n
The commodities examined included rice, eggs, chicken, fish, cooking\noil, sugar, shallots and chillies.<\/p>\n
Galau said the situation needed to be anticipated by strengthening\nproduction and distribution, so that increased food demand did not\nreduce the availability of staple goods for the public.<\/p>\n
\u201cOne thing that can be done is to involve communities and school\ncommittees. There are many MSME traders around schools, as well as\nlivestock breeders near the areas receiving the benefits,\u201d he said.<\/p>\n
Bank Indonesia (BI) recorded annual inflation in the volatile food\ncategory of 5.03 per cent in September 2026, up from 4.06 per cent in\nAugust 2026.<\/p>\n
Statistics Indonesia (BPS) data showed that pressure in this category\nwas driven mainly by broiler chicken, bird\u2019s eye chillies, rice and\nbeef.<\/p>\n
Galau added that stronger supply chains also needed to take account\nof areas facing high food vulnerability, particularly disadvantaged,\nfrontier and outermost regions (3T).<\/p>\n
He said supplier networks should also be developed with consideration\nfor production capacity, infrastructure conditions and demand\ncontinuity, so farmers and businesses could have long-term certainty\nabout their markets.<\/p>\n
In line with efforts to strengthen local supply chains, the National\nNutrition Agency (BGN), through BGN Regulation No.\u00a010 of 2026, has\nrequired SPPGs to involve local businesses as food suppliers,\nprioritising businesses in the sub-district where the kitchen is\nlocated.<\/p>\n
On 14 October 2026, BGN announced plans to develop a digital food\nprocurement system connecting SPPGs directly with producers, including\nlivestock-breeder cooperatives, to improve price transparency and\nbroaden market access.<\/p>\n
On the distribution side, the National Food Agency (Bapanas) and\nstate-owned logistics company Perum Bulog are also expanding the use of\nMerah Putih Village\/Urban Ward Cooperatives (KDKMP) to distribute rice\nunder the Supply and Price Stabilisation (SPHP) programme.<\/p>\n
Bulog recorded the distribution of 53.5 tonnes of SPHP rice through\n107 KDKMP outlets in seven provinces on 15 October 2026, as part of\nefforts to improve public access to affordable food.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/economist-community-based-food-supply-chains-can-help-keep-food-prices-stable-1792155195", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }