Jakarta (ANTARA) - The Indonesian government's Rp335 trillion (USD21 billion) Free Nutritious Meals (MBG) program in 2026 is expected to deliver major benefits for micro, small, and medium enterprises (MSMEs), a minister said.

"It's completely wrong to say the Prabowo administration is not supporting MSMEs," MSME Minister Maman Abdurrahman said at a national coordination meeting hosted by the Chamber of Commerce and Industry (Kadin) on Tuesday.

Abdurrahman said the large-scale budget allocation would directly benefit MSMEs by creating community kitchens run by medium-sized businesses.

Each kitchen will require between Rp500 million and Rp2 billion in capital and engage around 20 local suppliers for key goods such as eggs, fish, meat, rice, and vegetables.

The MSME Ministry has been tasked with expanding MSME participation in the MBG ecosystem, he said, adding that early trials in several regions have shown promising results.

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With plans to establish 30,000 MBG kitchens, known as Nutrition Fulfillment Service Units (SPPGs), he expects a significant transformation in the supply chain.

Initially, kitchens will compete to secure suppliers, but eventually, as all kitchens become operational, they may instead face shortages.

This situation will drive business ecosystems at the village level to expand their operations to meet the growing demand, he said.

"Whether they like it or not, business ecosystems at the sub-district and village levels will be pushed to start catfish ponds, poultry farms, egg farms, and more," Abdurrahman added.

The Rp335 trillion allocation for the MBG program represents 44.21 percent of the total 2026 education budget, which stands at Rp757.8 trillion (USD46.5 billion).

At a press conference on the 2026 State Budget Draft and Financial Note last Friday (August 15), National Nutrition Agency Head Dadan Hindayana reported that 5,885 MBG kitchens are already operating across 38 provinces, 510 regencies, and 7,200 districts.

In addition, nearly 19,000 more units are currently in the final stages of preparation for operational launch.

Related news: Ready to partner with MSMEs, canteens for meals program: BGN

Translator: Shofi Ayudiana, Kuntum Khaira Riswan
Editor: Rahmad Nasution
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