Key insights and market outlook
The National Nutrition Agency (BGN) has directed that the Makan Bergizi Gratis (MBG) program must prioritize products from local producers, including Micro, Small, and Medium Enterprises (UMKM). This decision, based on Presidential Regulation No. 115/2025, aims to boost local economic participation in the program. The agency emphasized that food production for the MBG program should be done by local communities, moving away from large corporate suppliers.
The National Nutrition Agency (BGN) has issued new directives for the implementation of the Makan Bergizi Gratis (MBG) program, emphasizing the use of locally produced goods. The agency's Deputy Head, Nanik S. Deyang, stated that the food production for the MBG program should be carried out by local communities, particularly through Micro, Small, and Medium Enterprises (UMKM). This move is in line with Presidential Regulation No. 115/2025, which mandates the prioritization of domestic products and the involvement of local business entities in the program.
The decision to shift away from large corporate suppliers to local producers is seen as a strategic move to boost local economic participation. By involving UMKM and local communities in the production process, the program aims to create economic opportunities at the grassroots level. Nanik highlighted that this approach not only supports local businesses but also ensures that the food produced is fresh and suitable for the local palate.
The BGN cited the city of Depok in West Java as a successful example where local production for the MBG program has been effectively implemented. In Depok, bread for the MBG program is produced by local mothers, including those from the Parents and Teachers Association (PKK), demonstrating a community-driven approach to food production.
This new directive is expected to have a positive impact on local economies by stimulating UMKM growth and increasing community involvement in government programs. The focus on local production is also likely to enhance the program's sustainability by making it more resilient to supply chain disruptions.
Shift to Local Production in MBG Program
Increased UMKM Participation