MBG Supply Chain Deemed Successful in Revitalising MSME Sector at 800 Locations

The Free Nutritious Meals (MBG) programme is not only focused on improving children’s nutrition but has also proven to create a new economic ecosystem in the regions. Based on an independent survey by the National Economic Council (DEN) at 800 implementation points, the programme has successfully mobilised the MSME sector and significantly absorbed local labour.

DEN Chairman Luhut Binsar Panjaitan presented the findings to the President at the Merdeka Palace on Tuesday (9/6). Luhut stressed that the survey was conducted professionally and credibly to ensure an accurate, data-based programme evaluation.

‘We were called by the President. The first explanation was the results of the DEN survey regarding the implementation of nutritious meals at 800 points, which was carried out professionally. This MBG is a very good programme, it just needs its management to be arranged more neatly,’ Luhut said after the meeting.

DEN member Septian Hario Seto detailed that the survey used a random sampling method covering a wide area, from South Nias to Papua. The results showed that 86.9% of Nutritional Fulfilment Service Units (SPPG) had engaged at least one local MSME as a supplier. On average, each SPPG cooperates with three MSMEs.

DEN data indicates that around 64% to 65% of supplier MSMEs are located in the same regency as the SPPG. This proves that the economic benefits are felt more by local business actors rather than large companies from outside the area. Furthermore, nearly 99% of the workforce involved in this programme are local residents.

Despite the positive impact, DEN noted challenges in the capital aspect for MSMEs. Septian revealed that working capital support is essential to enable business actors to supply needs in larger volumes and with a wider variety of commodities.

Responding to criticism regarding the regional economic contribution, which is still considered small, Luhut stressed that DEN adheres to valid field data. ‘The National Economic Council will not play around with data. This is a good thing, it’s just the management that we need to improve,’ he concluded.