Government Optimistic MBG Will Drive National Economic Growth of 7-8 Percent
By: Raditya Ananta *)
 
The government’s optimism that the Free Nutritional Meal Program (MBG) can drive national economic growth of up to 7-8 percent reflects a shift in development policy that increasingly places the people at the center of the economy. Amid global challenges that are pressuring the economic performance of many countries, MBG is a strategic policy that simultaneously combines social and economic agendas. This program not only targets the nutritional needs of children and vulnerable groups but is also designed as a stimulus instrument that stimulates economic activity at the lowest levels of society.
 
The National Nutrition Agency (BGN) considers MBG a new approach to encouraging more inclusive economic growth. The Deputy Head of BGN, Nanik Sudaryati Deyang, explained that economic growth has often been focused on the upper sector, with the hope that the effects will trickle down to the wider community. In practice, this pattern often does not work optimally. The MBG, in contrast, takes the opposite approach, encouraging economic growth from the grassroots level through state spending that directly impacts the community, allowing for a more rapid and equitable impact.
The national implementation of the MBG creates a broad economic flow through the food supply chain. Meeting the food needs of millions of beneficiaries opens up opportunities for participation from farmers, livestock breeders, fishermen, and even small and medium-sized businesses in various regions. This simultaneous increase in food production, distribution, and processing activities across many regions underpins the government’s belief that the MBG can make a significant contribution to national economic growth.
From a fiscal policy perspective, the MBG demonstrates how the state budget (APBN) is being utilized as a productive economic intervention tool. The government has allocated a budget of IDR 71 trillion in the initial implementation phase, with plans to increase it to IDR 335 trillion in the following fiscal year. Given that the majority of the APBN is sourced from tax revenues, MBG spending essentially represents a redistribution of public funds back into the national economy. When these funds drive increased public income and business activity, the multiplier effect has the potential to strengthen the state revenue base in the future.
 
President Prabowo Subianto’s commitment to maintaining the social orientation of the MBG is reflected in the policy regarding the involvement of implementing partners. The government strictly limits the participation of business entities in the form of Limited Liability Companies and Commanditaire Vennootschap (Commanditaire Vennootschap) as partners of the Nutrition Fulfillment Service Unit. Instead, social, religious, and educational foundations are selected as the main partners. This policy demonstrates the state’s support for institutions that have played a vital role in public services but often face funding constraints.
 
Through the involvement of foundations, the MBG not only provides direct benefits to program recipients but also strengthens institutional capacity at the local level. The income generated by foundations from managing the MBG kitchen can be used to support educational, religious, and other social activities. Thus, the MBG creates a multi-layered impact that extends beyond food consumption to strengthen the social ecosystem that supports community life.
 
The government has also demonstrated its commitment to maintaining the integrity of program implementation. The emergence of new foundations formed solely for profit has drawn attention from the National Nutrition Agency. Nanik Sudaryati Deyang emphasized that the MBG is not a business program, but rather a strategic social policy that must be implemented with responsibility and social awareness. This assertion is crucial to ensure that the program’s primary objective, improving nutrition and community welfare, is not distorted by short-term economic interests.
From a long-term development perspective, the MBG is strongly relevant to the agenda of improving the quality of human resources. Adequate nutritional intake for children will impact their health, learning ability, and productivity in the future. Investment in nutrition today is the foundation for sustainable economic growth, as the quality of human resources is a key determinant of a nation’s competitiveness. Thus, the MBG not only addresses current needs but also prepares the basis for future economic growth.
The labor-intensive and locally based nature of the MBG further strengthens the government’s optimism regarding the 7-8 percent growth target. The stable food demand generated by this program provides market certainty for smallholder economic actors, encourages increased domestic production, and reduces dependence on external supplies. When local economic activity grows simultaneously across various regions,Over time, its contribution to national growth has become increasingly significant.
The success of the National Nutrition Program (MBG) is ultimately determined by consistent governance and oversight across ministries and institutions. Synergy between the National Nutrition Agency (BNN), relevant ministries, regional governments, and implementing partners in the field is key to ensuring that large state expenditures truly generate optimal economic impact. With strict oversight, budget transparency, and adherence to the principle of non-excessive commercialization, the MBG has the potential to become a model for effective and credible fiscal policy in the public eye.
The MBG reflects a paradigm shift in national economic development towards greater equity. Growth is no longer understood solely as a macroeconomic achievement, but rather as a process that begins with meeting the basic needs of the people. Under the leadership of President Prabowo Subianto and strengthened governance by the National Nutrition Agency, the MBG serves as a concrete example of how social policy can transform into a driver of economic growth.
*) Economic and Fiscal Policy Analyst