Indonesia requires local MSMEs to supply free meal programme
The government is preparing village cooperatives to organise suppliers, but a microcredit interest reduction is not yet in force.
Local micro, small and medium enterprises (MSMEs) must supply every raw ingredient used in Indonesia’s Free Nutritious Meal (MBG) programme, Coordinating Minister for Food Affairs Zulkifli Hasan said.
Addressing the Agrinex agriculture exhibition’s opening in Jakarta, Hasan said the national strategic programme must deliver economic benefits directly to grassroots communities. He said the government was preparing Red and White Village Cooperatives (KDKMP), with one in each village, to organise local businesses and distribute government assistance.
National Nutrition Agency (BGN) figures showed 63,189 MSMEs participating in MBG procurement as of July 2026. The agency also reported 27,485 Nutrition Fulfillment Service Units (SPPG), which served up to 57 million people under the programme.
Hasan said the government was lowering the flat annual interest charged on PNM Mekaar microcredit to no more than 8 per cent to help local enterprises meet the programme’s supply needs. PNM Mekaar is a state-owned microfinance firm.
Finance Ministry Regulation No. 74 of 2026 sets out the reduction through subsidies covering interest and margins on credit for pre-prosperous women. Implementation is still pending while the MSME Ministry, which has budget authority, finalises a cooperation agreement with PNM.
