Abdurrahman told the press here on Thursday that his ministry has considered an upfront financing scheme for meeting the capital needs of the kitchens run by MSMEs involved in the free meals program.
The scheme has been considered because of the reimbursement system in the program implementation, which is considered burdensome for MSMEs.
"MSMEs conveyed their hopes to us, asking for help to bridge the financing issue," he informed.
The capital access scheme will later involve 46 banks that will disburse low-interest rate People's Business Credit (KUR) as well as four state-owned banks.
He informed that his ministry has held a meeting with state-owned banks and the National Nutrition Agency (BGN).
"Banks are ready to support financing access for MSME players that need upfront capital," he said.
The minister underlined that support for priority programs is highly needed so that the best services can be provided to the public smoothly.
The Indonesian government officially launched the Free Nutritious Meals program on January 6, 2025, as one of the main programs of President Prabowo Subianto and Vice President Gibran Rakabuming Raka for their 2024–2029 term.
A budget of Rp71 trillion (around US$4.34 billion) has been allocated for the program. The government set up the BGN in August 2024 to support the program's implementation.
Through the program, the government aims to enhance the nutritional intake of children under five, pregnant women, breastfeeding mothers, and schoolchildren up to high school age.
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Translator: Arnidhya Nur, Raka Adji
Editor: Azis Kurmala
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