Indonesian Political, Business & Finance News

Deputy Minister for Villages: Free Nutritious Meals Programme Boosts Agricultural Productivity in Rural Communities

| Source: CNBC Translated from Indonesian | Social Policy
Deputy Minister for Villages: Free Nutritious Meals Programme Boosts Agricultural Productivity in Rural Communities
Image: CNBC

Jakarta — Deputy Minister for Villages and Disadvantaged Regions Ahmad Riza Patria has revealed that each village receives annual village funds amounting to approximately IDR 800-900 million.

Village funds have primarily been directed towards supporting village activities that assist farmers in purchasing fertiliser, improving irrigation systems and building embankments, depending on each village’s specific needs and conditions. To date, decisions on village fund allocation have been made by village officials rather than village heads.

Regarding the use of village funds for developing Village Cooperatives, Ahmad Riza Patria stated that Red-and-White Village Cooperatives (Koperasi Desa/Kelurahan Merah Putih) aim to stimulate village economies and transform rural communities into economic actors and economic subjects.

Government funding for Village Cooperatives is limited to the initial phase covering logistics and physical construction of the cooperative facilities, lasting only six years. After this period, villages must seek alternative funding sources for development needs, including state budget allocations, regional budget allocations, state-owned enterprise assistance, private sector support and loans.

The government is simultaneously promoting rural economies through the Free Nutritious Meals (Makan Bergizi Gratis, or MBG) programme, which is expected to boost agricultural production, stimulate micro, small and medium-sized enterprises, and create employment opportunities.

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