BGN: Funds circulation from MBG reaches Rp6 trillion per month in West Java

Jakarta (ANTARA) - The Head of the National Nutrition Agency (BGN), Dadan Hindayana, stated that the funds circulation resulting from the Free Nutritious Meals Programme (MBG) reaches Rp6 trillion per month in West Java Province (Jabar).

Dadan explained that the MBG programme is designed to create economic circulation in the regions through a budget distribution scheme that directly enters Nutrition Fulfilment Service Units (SPPG).

“In West Java, there are already 6,200 SPPG. This means around Rp6 trillion per month is circulating in the region solely from this programme,” he said in an official statement in Jakarta on Wednesday.

Dadan noted that with a total budget of Rp268 trillion, the MBG programme is one of the largest fiscal interventions directly impacting communities at the local level.

“We channel those funds directly to the regions through virtual accounts at each SPPG. Approximately Rp248-249 trillion flows downwards and is spent in the regions,” he said.

According to Dadan, this scheme positions SPPG as new centres of economic activity in the regions, where each unit manages around Rp1 billion per month, with most of the funds used to purchase food raw materials from the surrounding community.

“This means the MBG programme is synonymous with local food self-sufficiency, as almost all needs are supplied from within the region,” he said.

In addition, the large-scale funds flow is beginning to create a multiplier effect on the local economy. Demand for agricultural commodities is increasing, product prices are becoming more stable, and production activities at the farmer and small business levels are being boosted.

According to Dadan, the MBG programme also contributes to socio-economic indicators. BGN records a trend of declining poverty and unemployment rates in several regions, as well as narrowing economic inequality.