BGN Says Free Nutritious Meals Programme Involves 52,689 MSMEs and Empowers 1 Million People

The Free Nutritious Meals (MBG) programme not only improves access to nutrition but also creates economic opportunities for local businesses.

By involving micro, small and medium-sized enterprises (MSMEs), cooperatives, village-owned enterprises (BUMDes), farmers and livestock breeders in the food supply chain, the programme could expand the market for local products and boost economic activity in the regions.

According to National Nutrition Agency (BGN) data as at 9 October 2026, 63,608 suppliers across 37 provinces were involved in the MBG programme. Of these, 52,689, or 82.83 per cent, were MSMEs. The remainder comprised 9,388 suppliers from cooperatives, 1,105 from BUMDes and 426 from Merah Putih Village Cooperatives (KDMP).

BGN head Sudaryono said the programme was also intended to deliver economic benefits to local businesses and food producers.

“The programme has an impact on the local economy by empowering MSMEs, farmers and livestock breeders. The main requirement is that all food ingredients must be suitable and meet food safety standards,” Sudaryono said in a statement on Sunday (25 October 2026).

The high level of MSME participation in the MBG supply chain points to opportunities for local businesses to take part in a national programme. Demand for ingredients for nutritious meals opens up markets for suppliers, from providing products to distributing food to Nutrition Fulfilment Service Units (SPPGs).

During President Prabowo Subianto’s first two years in office, MBG has become one of the programmes linking efforts to improve human resources with the economic empowerment of communities. Its economic benefits could spread further if programme needs are met through lasting partnerships with local producers and businesses.

MBG strengthens the supply chain and opens markets for local businesses

The programme involves a range of participants in the food ecosystem. Farmers and livestock breeders can supply food, cooperatives can collect members’ products, while MSMEs and BUMDes have opportunities to provide and distribute food supplies.

Under this arrangement, SPPGs are a key link between programme demand and suppliers. Procurement from local producers could create markets for businesses in the areas served while helping to sustain demand.

Sudaryono also stressed the importance of prioritising food from local areas, so communities there can benefit economically. He made the remarks in response to Bulog’s proposal to supply premium rice to the MBG programme.

“We view Bulog’s proposal positively. However, we want to emphasise that the MBG programme will continue to prioritise food from local areas. We want local farmers, traders and MSMEs to share in the economic activity generated by this programme,” Sudaryono said.

BGN welcomed Bulog’s proposal as support for meeting the programme’s rice needs. The supply could provide an alternative when local supplies are insufficient, while food from the area remains the priority. This approach is consistent with efforts to strengthen local producers’ role in the programme’s supply chain.

One example is the procurement of eggs for MBG in East Java. According to BGN materials, SPPGs in the province are required to buy eggs from local poultry farmers three times a week.

The reference price is about Rp24,000 per kilogram at farm level, with estimated purchases amounting to 8–10 per cent of East Java’s total egg production. The arrangement is expected to open up a market for farmers and boost economic activity in the region.

Strengthening local supply chains also gives cooperatives scope to enhance their members’ economic role. By bringing together products from farmers and livestock breeders, cooperatives could widen market access and establish more organised business relationships with programme operators.

However, the economic benefits will depend on how procurement is carried out, including local supplier participation, continuity of demand, product quality, fair prices and prompt payment to suppliers.

More than one million staff and volunteers involved

The programme also involves a large workforce. BGN data up to September 2026 recorded 1,027,998 staff and volunteers actively involved, comprising 86,120 SPPG staff and 941,878 volunteers.

The figures indicate the scale of operations needed to support the programme across the country. However, they should be read according to the categories used by BGN, as not all those counted are formal employees or paid workers.

For service coverage, BGN data as at 9 October 2026 recorded 26,385 SPPGs under the second provisional decree on beneficiary family groups (KPM), with 433,571 beneficiary groups and a total of 57,491,334 beneficiaries.

Separately, data up to September 2026 recorded budget spending of Rp149.79 trillion and coverage of 53,906,576 beneficiaries. The two beneficiary figures relate to different reporting periods.

The programme’s extensive reach highlights the scale of food demand that must be met on a sustained basis. In terms of economic empowerment, this demand creates opportunities for local producers and suppliers to participate, provided they can meet standards for quality, food safety, price and continuity of supply.

Going forward, stronger partnerships with MSMEs, farmers, livestock breeders, cooperatives and BUMDes will be important to extending the programme’s economic benefits.

Evaluation should also examine changes in MSME turnover, farmers’ and livestock breeders’ incomes, the continuity of procurement contracts and the distribution of business opportunities across regions.

MBG therefore has the potential to advance two development goals at once: improving public nutrition and strengthening local economic activity.

As part of the government’s drive to deliver tangible results in its first two years, the programme’s success will be measured not only by the reach of its services but also by its efforts to build a supply chain in which local businesses can grow.