Indonesia’s Free Meal Program to Multiply Village Fund Circulation
JAKARTA, Investortrust.id — Indonesia's ree nutritious meal program, or MBG, would increase annual fund circulation in villages by fourfold to about $520,000 annually, invigorating the local economy and augment the villages livelihoods, a minister said on Saturday, Jan. 25, 2025.
Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman stated MBG) could increase annual fund circulation in villages to Rp 7–8 billion ($450,000–520,000) per village, up from the current Rp 1–2 billion ($ 65,000–130,000) allocated through the national Village Fund scheme.
The initiative mandates sourcing food supplies locally, directly channeling funds to village-based producers and MSMEs.
“Village funds currently amount to Rp 1–2 billion per year, mostly allocated for infrastructure. With the MBG program, approximately Rp 7–8 billion will circulate within villages across Indonesia,” Maman said.
The program leverages Indonesia’s 75,260 villages, requiring them to procure ingredients for free meals from local farmers and MSMEs.
Maman, a Golkar Party politician, also highlighted the role of women-led businesses: “Of Indonesia’s 2.9 million culinary MSMEs, 49% are led by women. Around 30,900 catering MSMEs are poised to participate in the MBG program.”
Village Fund Allocation Rules
Separately, Minister of Villages and Disadvantaged Regions Yandri Susanto outlined 2025 priorities under Village Ministry Regulation No. 2/2025. Under the regulation, villagest must allocate 15% minimum of the funds for extreme poverty alleviation, climate change adaptation infrastructure, and basic healthcare services and stunting prevention, with 20% allocation for food security programs, aligning with President Prabowo Subianto’s “Asta Cita” agenda.
“Villages with stunting cases must prioritize this issue, as it is key to national development,” Yandri emphasized.
Village Fund scheme has disbursed Rp 610 trillion since 2015. MBG’s success hinges on redirecting existing village funds rather than new allocations, with strict procurement rules for local sourcing.