Indonesian Political, Business & Finance News

Tofu and Tempeh Makers Reap Windfall from Free Nutritious Meal Programme

| Source: CNBC Translated from Indonesian | Economy
Tofu and Tempeh Makers Reap Windfall from Free Nutritious Meal Programme
Image: CNBC

The resumption of the Free Nutritious Meal (MBG) programme has brought a windfall for Indonesian tofu and tempeh artisans. The Indonesian Tofu and Tempeh Producers Cooperative Union (Gakoptindo) has recorded an approximate 20 per cent increase in demand for the products since the programme restarted. Gakoptindo Secretary General Wibowo Nurcahyo stated that sales had previously suffered a drastic drop when the MBG programme was temporarily halted. However, conditions have begun to improve with the programme’s return and the appointment of new leadership at the National Nutrition Agency (BGN). ‘We are grateful, sales are starting to get better,’ Wibowo said. He noted that the benefits of the MBG programme extend beyond tofu and tempeh producers to other food businesses, such as egg farmers, as tofu and tempeh are regularly included in the meal packages. ‘The impact was really felt. It’s not just tofu and tempeh, eggs too, right? So MBG actually has a good impact on tofu and tempeh, because they are routinely included in the children’s meal boxes,’ he explained. Based on reports received by Gakoptindo from its members across various regions, the programme has driven a production increase of around 20 per cent. Wibowo also addressed concerns regarding fictitious MBG kitchens, assuring that they have not affected the supply of tofu and tempeh to official kitchens. He explained that the problematic kitchens were not operational and therefore did not absorb raw materials from artisans. Despite the recovery in demand driven by MBG, Gakoptindo cautioned that challenges for artisans remain. They continue to face rising production costs, including logistics, fuel, and packaging, while being unable to raise selling prices due to limited public purchasing power. ‘If we raise prices, no one will buy,’ he added. Consequently, artisans hope the MBG programme will continue consistently to sustain demand and support the viability of their businesses.

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