Indonesian Political, Business & Finance News

Why the Government is Mandating MBG Kitchens to Purchase Chicken Eggs

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Minister of Trade Budi Santoso stated that he has coordinated with the National Nutrition Agency to mandate that nutrition service units for the Free Nutritious Meal (MBG) programme in East Java absorb locally produced chicken eggs. “This is so that prices can approach or align with the Maximum Retail Price (HET), ensuring that poultry farmers receive favourable prices,” Budi said at the Ministry of Trade office on Thursday, 4 June 2026.

Budi noted that this instruction considers the current condition of chicken egg prices in East Java, particularly in Blitar, which have plummeted. Data from the Ministry of Trade recorded the average price of chicken eggs in East Java on Thursday, 4 June 2026, at Rp 25,474 per kilogram. In addition to a daily decrease of 0.02 per cent, chicken egg prices in East Java are moving away from the consumer-level reference purchase price (HAP) set at Rp 30,000 per kilogram.

He stated that egg production is currently experiencing a 12 per cent surplus. According to Budi, this surplus condition could benefit farmers if accompanied by sufficient demand. “The demand actually exists; we just need to manage the nutrition service units well so that the eggs can be absorbed effectively,” he remarked.

Budi added that the government’s move to mandate MBG kitchens to absorb food commodities is not limited to eggs. He mentioned that the government intends to utilise these nutrition service units to absorb food supplies such as chicken meat if prices fall.

In addition to using the nutrition service units for absorption, Budi opened the possibility of using eggs as food assistance during periods of surplus production. “For example, if egg prices are falling, food assistance does not necessarily have to be Minyakita or rice, but could also include eggs,” said the PAN politician.

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