86.9 Percent of Free Nutritious Meal Programme Units Partner with at Least One Local MSME

Jakarta (ANTARA) - National Economic Council (DEN) member Septian Hario Seto stated that an independent survey on the implementation of the Free Nutritious Meal (MBG) programme found that 86.9 percent of Nutritional Fulfilment Service Units (SPPG) have at least one small-scale supplier. “The first positive result we see is that 86.9 percent of existing SPPGs currently have at least one small supplier,” Seto said at the Presidential Palace Complex in Jakarta on Tuesday. According to Seto, each SPPG partners with an average of three micro, small and medium enterprises (MSMEs) as suppliers of raw materials and other operational needs. The findings indicate that the MBG programme not only contributes to improving the nutrition of Indonesian children but also creates a new supply chain ecosystem involving local business actors. Furthermore, Seto noted that around 65 percent of the MSME suppliers are located in the same district as the SPPG. This condition shows that the economic benefits of the MBG programme are felt more by local business actors in the regions. “So it is also important that these are not large suppliers coming in, but rather MSMEs that emerge are indeed those within the district or location where the SPPG is situated,” he explained. The DEN survey also found that nearly 99 percent of the workforce employed at SPPGs comes from the surrounding community. This indicates the MBG programme also helps create jobs and drive the regional economy. Furthermore, DEN recorded a fairly high satisfaction rate with the performance of MSME suppliers, reaching over 70 percent. Nevertheless, there are still a number of challenges that need to be addressed, particularly regarding access to capital for MSME players so they can increase their business capacity and expand the types of commodities involved. “So they can have better working capital, ultimately enabling them to serve more SPPGs with a more diverse range of commodities,” Seto said. Seto added that strengthening the local supply chain through the programme is one of the factors supporting Indonesia’s economic growth, which reached 5.61 percent. The survey results have been reported by DEN to President Prabowo Subianto as evaluation material and input for the future development of the MBG programme.