Indonesian Political, Business & Finance News

Academic views MBG programme as buffer for excess chicken egg production

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Academic views MBG programme as buffer for excess chicken egg production
Image: ANTARA_ID

The MBG programme can serve as a market buffer. When egg production is abundant and prices fall, the state intervenes through absorption to maintain price equilibrium and protect farmers.

Jakarta (ANTARA) - Academic from the Faculty of Economics and Business at Universitas Muhammadiyah Yogyakarta (UMY), Prof. Dr. Imamudin Yuliadi, believes that increasing egg consumption through the Free Nutritious Meals (MBG) programme can help mitigate the impact of excess layer chicken egg production at the farmer level.

The increased egg consumption in the MBG programme can provide a short-term solution to assist layer chicken farmers who have recently faced declining producer prices due to overproduction.

“The MBG programme can act as a market buffer. When egg production is abundant and prices drop, the state steps in through an absorption scheme to maintain price balance while protecting farmers,” said Prof. Imamudin in a statement in Jakarta on Friday.

Previously, the Ministry of Agriculture has encouraged the optimisation of egg use in MBG menus as part of a strategy to keep layer chicken egg prices stable at the farmer level.

He further stated that if egg absorption through MBG yields positive impacts, the same could apply to other commodities such as rice, vegetables, salt, spices, and meat.

“If the egg phenomenon can occur, then other commodities can also benefit. This is a positive signal for the programme. From an economic perspective, there is a tangible multiplier effect,” he said.

This impact is considered important because the MBG programme can bridge students’ nutritional needs with strengthening the people’s economy through the absorption of local products from farmers, livestock breeders, fishermen, and SMEs.

However, the government is urged to provide stronger communication to the market so that MBG implementation does not instead trigger new speculation regarding potential rises in staple goods prices due to increased national demand for food items.

According to him, the economic impact of MBG cannot be generalised because each region has different market characteristics. In areas with strong production bases, the programme could strengthen the local economy. Conversely, in regions with limited supply, mitigation is needed to prevent price distortions.

Therefore, a comprehensive evaluation is deemed essential, involving community elements such as universities, community organisations, local governments, and local business actors.

This evaluation should cover the implementation chain from upstream to downstream, starting from raw material procurement, distribution, processing, to the food reaching students’ hands.

This step is considered crucial to identify vulnerable points that could disrupt programme quality or budget efficiency.

In addition to technical aspects, academic studies are needed to measure the multiplier effect of MBG on increasing income for farmers, fishermen, market traders, and SMEs.

“If managed properly, the benefits of MBG are not only for students. This programme can drive regional economic growth, create jobs, and strengthen national food security,” he said.

On the other hand, the government is urged to be more proactive in explaining the economic impacts of the programme to the public to prevent wild speculation, including allegations that MBG enlarges the state debt.

“The public needs rational explanations. If the government can explain well, the public will surely respond positively,” he stated.

According to him, the state debt issue must be placed in the context of national fiscal policy.

“The debt phenomenon is a reality for developing countries because we adhere to deficit budget politics. The question is not whether there is debt or not, but what the deficit is allocated for and what its impact is on society,” he said.

He believes the public’s logic is actually simple: the government just needs to show evidence of the programme’s benefits.

“If there are accusations that MBG enlarges debt, the response must be data-based. To what extent MBG improves student health, learning concentration, academic performance, physical health, and to what extent this programme absorbs local commodities and improves the welfare of farmers, breeders, and fishermen. That is what the government needs to explain,” he stated.

Therefore, MBG is seen as unable to operate in isolation. The programme requires cross-sectoral synergy to maximise its benefits.

“This programme must be collaborated with other sectors. There must be shared perceptions and joint steps between central and local governments, the business world, academia, and society for greater impact,” he said.

He views this collaboration as important for strengthening the food supply chain and maintaining distribution efficiency.

With strong public communication, strict oversight, and cross-sectoral synergy, MBG is considered to have the potential to become one of the nation’s strategic programmes that not only enhances the quality of Indonesia’s young generation but also serves as an engine for the people’s economy from villages to the national level.

View JSON | Print