Indonesian Political, Business & Finance News

DPR Member: MBG Contracts Boost SME Business Viability in NTB

| Source: ANTARA_ID Translated from Indonesian | Economy
DPR Member: MBG Contracts Boost SME Business Viability in NTB
Image: ANTARA_ID

Mataram (ANTARA) - Kamrussamad, a member of Commission XI of the House of Representatives (DPR RI), has assessed that the Free Nutritious Meal (MBG) programme initiated by the central government has been able to improve the viability of food-sector businesses in West Nusa Tenggara (NTB).

“MBG must be seen as an economic engine. If managed properly, the programme can become a driver of the local economy that gives rise to new entrepreneurs from the regions,” he said in a statement in Mataram on Monday.

Kamrussamad said that many food MSMEs have long faced the main problem of market uncertainty. The MBG programme changes this situation by presenting stable demand over the long term.

According to him, the certainty of business contracts enables MSME players to expand production and increase business capacity while also strengthening their access to bank credit.

Every rupiah of budget that enters NTB through the MBG programme must circulate within the region for as long as possible before leaving. Local entrepreneurs need to take a dominant role in the food supply chain, from the production of raw materials and distribution to the management of centralised kitchens.

“If the supply chain is controlled by NTB business players, then money does not immediately leave the region. The effect can circulate three to four times and create new wealth for the community,” said Kamrussamad.

The Chairman of the Regional Executive Board of the Corps Alumni Entrepreneurs Association (Hipka) of the Islamic Students Association said MBG is a fiscal instrument capable of driving regional economic growth if its supply chain is controlled by local business players.

State budget (APBN) funds flowing through meal provider kitchens are then passed on to vegetable farmers, cattle breeders, egg producers, logistics players, and workers in the food processing sector.

As of 31 May 2026, the Regional Office of the Directorate General of Treasury (Kanwil DJPb) of NTB Province recorded that the central government had disbursed APBN funds to support the national priority Free Nutritious Meal programme for 1.89 million beneficiaries, with spending realisation reaching Rp2.02 trillion.

MBG entrepreneur Ahmad Tantawi reminded of the need for regulatory certainty so that the business world is increasingly interested in investing in the MBG ecosystem.

“This is the first time there is a programme that goes straight down directly without convoluted bureaucratic processes. Money is directed straight down without much bureaucracy,” said Ahmad.

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