Jakarta (ANTARA) - Indonesia's Coordinating Minister for Food Affairs Zulkifli Hasan said all raw materials for the Free Nutritious Meal (MBG) program must be supplied by local micro, small and medium enterprises (MSMEs).
Speaking at the opening of the Agrinex agriculture exhibition here Friday, Hasan said the national strategic program must have a direct economic impact on grassroots communities.
"Everything related to food is directly connected to MSMEs. For the MBG program, the supplier must be MSMEs. Agriculture must be MSMEs," Hasan said.
National Nutrition Agency (BGN) data showed that as of July 2026, only 63,189 MSMEs were connected to the MBG supply chain while there have been 27,485 Nutrition Fulfillment Service Units (SPPG), serving up to 57 million MBG beneficiaries.
To consolidate supply from local MSMEs, the government is preparing Red and White Village Cooperatives (KDKMP) at the village level as a place to gather them and distribute government aid, Hasan said.
"The MSMEs will be managed at the Red and White Cooperatives, one per village," he said.
To help local MSMEs meet MBG supply needs, the government is cutting interest on microcredit from state-owned microfinance firm PNM Mekaar to a maximum of 8 percent flat per year, he said.
The cut is regulated under Finance Ministry Regulation No. 74 of 2026 on implementing interest and margin subsidies for pre-prosperous women's credit.
However, the policy is not yet in effect because it is still being finalized at the MSME Ministry, the budget authority, through a cooperation agreement with PNM.
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Translator: Shofi, Kenzu
Editor: Rahmad Nasution
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