Economist: MBG Boosts Local Economy And Help Stabilize Food Prices

JAKARTA - The Free Nutrition Food Program (MBG) is starting to show a wider impact than just fulfilling the nutritional aspects of school children and the B3 group (Pregnant Mothers, Breastfeeding Mothers, and Toddlers). In many areas, food demand from this program has begun to move local markets to maintain the stability of food prices.

According to Awalil Rizky, economist and founder of the Bright Institute an institution that focuses on economic studies and public policy MBG has great potential to drive the economy, especially at the local level. Awalil Rizky also highlighted the improvement in budget governance which continues to be carried out by the National Nutrition Agency (BGN) as the main stakeholder of this program.

Awalil Rizky stated that MBG is a program that is very well received by various parties because it is able to provide double benefits.

"If the MBG program continues, it must continue to be improved. Return to the goals set out from the start. So MBG is not only related to providing food to students, pregnant women and so on, but also he can move the economy, especially the local economy," he said, Friday, December 5.

Rizky's statement is in line with the need for healthy MBG program governance so that large budget benefits can be spread evenly to regions. In the context of governance, Rizky specifically emphasized that the Government should immediately follow up on recommendations from the Business Competition Supervisory Commission (KPPU).

KPPU in August 2025 has provided five recommendations related to partnerships in the MBG program so that it can be followed by many business actors, including MSMEs. It is believed that the implementation of KPPU recommendations can ensure competitive supply chains and involve local business actors at large.

"In my opinion, the KPPU recommendation needs to be echoed so that the market does not become unhealthy. For example, the existence of monopoly, oligopoly, or there are a handful of parties who control supply, or control several other things. KPPU recommendations can, among other things, overcome unnecessary problems," said Rizky.

In addition, the MBG budget allocation is also considered to have a significant impact on the national economy, especially on the 2025 fiscal realization which will near the end of the fiscal year.

The partnership, which was born from the MBG program, has become a breath of fresh air for the local economy, opens up new business opportunities, and provides more stable income for traders in various regions.

One of the success stories came from Tri Susanto, a vegetable trader in Kalikajar District, Purbalingga Regency, Central Java. In the past, Tri only relied on uncertain daily sales in the market.

However, since being involved in the MBG program, his fate has changed. Now, he has transformed into the main supplier of daily food for the kitchen of the Kalikajar 1 Purbalingga Nutrition Service Unit (SPPG).

This positive impact is widespread. "Those who feel the impact are certainly not just me," said Tri. "This is also felt by local farmers because I took materials directly from them. In the past, vegetable prices often fell. Since the MBG was around, demand has increased and prices have been much more stable."

In fact, Tri is now able to create jobs for women around her neighborhood to help the process of cleaning vegetables. "All parties get the economic benefits," he concluded proudly.