Kitchen of Free Nutritious Meals Programme to Receive IDR 500 Million Daily

Jakarta, CNBC Indonesia – The National Nutrition Agency (BGN) has disclosed that each Nutrition Fulfilment Service Unit (SPPG) now receives an average budget allocation of IDR 500 million daily to operate the Free Nutritious Meals Programme (MBG), with 24,122 SPPG units distributed throughout Indonesian territories.

BGN Head Dadan Hindayana stated that this scheme represents part of a new fund distribution pattern by the National Nutrition Agency, wherein 93% of the budget is directly transferred to service units without passing through regional governments. He noted that from a total budget of IDR 268 trillion, approximately IDR 240 trillion circulates directly in regions, spanning from Sabang to Merauke.

“BGN is introducing a new model whereby 93% of BGN funds are channelled directly to SPPG units. So if there is IDR 268 trillion in funds, approximately IDR 240 trillion in money circulates from Sabang to Merauke, and daily each SPPG receives IDR 500 million,” Dadan stated in his remarks, as quoted on Friday (27 February 2026).

“I believe this is a new model where not a single rupiah of funds is channelled from the centre to regional governments,” he added.

Under this scheme, the number of SPPG units operating in a given region directly determines the volume of funds circulating in that area. The more service units, the greater the daily money circulation that occurs.

To date, circulating funds have reached approximately IDR 36 trillion. BGN assesses that this substantial fund circulation in early this year serves as a significant economic driver as it directly targets food commodity purchases and operations at the local level.

The Free Nutritious Meals Programme (MBG) is also said to have a direct impact on local production sectors because local products are guaranteed absorption by the state.

“It has never happened in any era that local production is guaranteed absorption by the state as it is now. It is no surprise that there are carrot farmers in East Nusa Tenggara who are pleased because the price of their carrots can increase three-fold,” he stated.

This increase in production absorption has contributed to an improvement in the Farmer’s Terms of Trade (NTP). The current average NTP is reported to have reached 125, up from the previous level of approximately 102.

“I am confident that with the MBG programme, the Farmer’s Terms of Trade will be able to rise to 150,” he asserted.

By March this year, BGN fund circulation is projected to have already reached IDR 62 trillion. With an allocation of IDR 500 million daily per SPPG, BGN considers this programme not merely a nutrition intervention, but also an economic stimulus that is directly felt in regions.