State Banks Offer Financing for Indonesia's Nutrition Program Infrastructure

Government Initiative Gets Financial Support

Indonesia's state-owned banks, collectively known as Himbara, have announced financing options for businesses constructing nutrition centers for the government's ambitious free nutritious meal program (MBG). Danantara Indonesia's CEO, Rosan Roeslani, revealed that companies can now access credit from major state banks including Bank Mandiri, BNI, BRI, and Bank Syariah Indonesia.

Expert Recommendations for Risk Mitigation

The Institute for Development of Economics and Finance (Indef) has emphasized the need for a concrete risk-sharing mechanism to make the MBG program more attractive to lenders. M. Rizal Taufikurahman, Head of Macroeconomic and Financial Studies at Indef, noted that state banks will likely adopt a cautious approach due to the program's nascent stage and lack of established cash flow history.

Phased Financing Approach Recommended

To balance risk management with government program support, Indef suggests implementing a phased financing strategy coupled with robust governance. This approach would involve thorough due diligence on operational risks and market feasibility to maintain asset quality. Rizal emphasized that such a strategy would allow state banks to remain prudent while supporting the government's initiative through data-driven, measured financing decisions.

Focus on Underserved Regions

The financing opportunity is particularly aimed at developing nutrition centers in remote, frontier, and disadvantaged areas (3T regions). This focus aligns with the government's broader objectives of improving nutrition and healthcare infrastructure across Indonesia. By facilitating access to funding, the government aims to encourage private sector participation in achieving these development goals.