The Free Nutritious Meal Program (MBG) is being linked to a significant surge in the prices of eggs and broiler chicken meat, according to data from the Central Statistics Agency (BPS). In response, Dadan Hindayana, Head of the National Nutrition Agency (BGN), is urging experts to devise a more diversified menu to avoid over-reliance on one or two raw material sources.
“Experts can create more varied menus so that we don’t depend on just one or two sources of raw materials,” Dadan stated when contacted by Katadata.co.id on Wednesday (12/11).
He anticipates a growing demand on the food supply chain in the coming period. He hopes this increased demand will stimulate local production and regional productivity.
“Hopefully, this will boost local production and regional productivity, leading to an improved farmer exchange rate,” he added.
Read also:
- BPS: MBG Program Fuels Surge in Egg and Chicken Meat Inflation
- BI: Inflation Likely to Rise in December 2025 and March 2026
- October 2025 Inflation Reaches 0.28%, Boosted by Gold Prices
Earlier, BPS reported that October inflation reached 2.86% year-on-year (yoy). Key commodities contributing significantly to this figure included rice, red chili, red onions, broiler chicken meat, and chicken eggs, among others.
“The implementation of the MBG program, ongoing for several months, has contributed to a surge in demand for chicken eggs and broiler chicken meat,” stated Pudji Ismartini, Deputy for Distribution and Services Statistics at BPS, during a press conference in Jakarta last week (3/11).
She highlighted that inflation for chicken eggs during that period was recorded at 4.43%, while broiler chicken meat inflation stood at 1.13%. “Both commodities were primary contributors to October’s inflation,” she asserted.
Furthermore, BPS observed an increase in demand for chicken eggs and chicken meat from the Nutritional Fulfillment Service Units (SPPG) of the MBG program, sourcing from markets, retailers, and wholesalers.
“This is therefore suspected to be a key indicator of the rising demand for eggs and broiler chicken meat,” she elaborated.
Beyond this, Pudji noted that the inflation in chicken eggs and broiler chicken meat was also fueled by an increase in broiler chicken production costs. Additionally, rising prices for live chickens and feed corn in various regions further contributed to the upward trend.
However, BPS does not calculate a specific inflation rate directly attributable to the MBG program. “Regions experiencing inflation due to this MBG program also cannot be specifically identified,” Pudji clarified.
BGN Budget Absorption for the MBG Program
The National Nutrition Agency (BGN) convened a meeting with Commission IX of the DPR (House of Representatives) at the Parliament Complex in Senayan, Jakarta, today (12/11). During the session, Dadan announced that the budget absorption for the MBG program had reached IDR 43 trillion out of an allocated ceiling of IDR 71 trillion.
Dadan further explained that the BGN requires an additional IDR 29.5 trillion to sustain the MBG program through the end of the year, detailed as follows:
- IDR 8.5 trillion for late November
- IDR 10 trillion for early December
- IDR 11 trillion for late December
“Our total budget requirement, the additional amount being proposed to the Ministry of Finance, is IDR 28.63 trillion. Thus, BGN is projected to absorb 99% of the IDR 71 trillion fund,” Dadan elaborated during his presentation.
“Adding this IDR 28.63 trillion, we will need approximately IDR 99 trillion in total budget throughout this year,” Dadan further stated.
Contacted separately, Nanik Sudaryati Deyang, Deputy Head of BGN, expressed optimism that the current budget would be sufficient to cover the raw material costs for the MBG program.
“Currently, prices are similar to those during Lebaran (Eid). God willing, the budget will still be adequate for raw materials,” Nanik told Katadata.co.id on Wednesday (12/11).
Summary
The Free Nutritious Meal Program (MBG) is being linked by the Central Statistics Agency (BPS) to a significant surge in the prices of eggs and broiler chicken meat. BPS reported that chicken eggs (4.43%) and broiler chicken meat (1.13%) were major contributors to October’s 2.86% inflation, attributing increased demand to the MBG program. In response, Dadan Hindayana, Head of the National Nutrition Agency (BGN), urged for more diversified menus to reduce reliance on specific raw materials and hoped this demand would stimulate local production.
BPS noted that increased demand from MBG’s service units, alongside rising production costs and feed prices, contributed to inflation in these commodities, though BPS does not calculate specific MBG-attributable inflation. Meanwhile, BGN has absorbed IDR 43 trillion of its IDR 71 trillion MBG budget and is requesting an additional IDR 28.63 trillion to cover program costs until year-end, bringing the total budget requirement to approximately IDR 99 trillion.
