Indonesia’s Free Meal Program Faces Price Markup Allegations
Jakarta – Concerns are rising over alleged price markups of food ingredients within Indonesia’s Free Nutritious Meal (MBG) program. Deputy Head of the National Nutrition Agency (BGN), Nanik Sudaryati Deyang, has reported receiving numerous complaints from heads of Nutrition Fulfillment Service Units (SPPGs) regarding inflated prices above the Highest Retail Price (HET) and the use of substandard ingredients.
Reports of Inflated Prices and Limited Suppliers
During a coordination meeting with 933 MBG kitchen managers in Solo, covering Surakarta City, Boyolali Regency, Sragen Regency, and Karanganyar Regency, several SPPG heads reported instances of partners increasing food prices beyond the HET and restricting suppliers to only one or two vendors. Tempo.co reported on February 25, 2026, that these allegations prompted an immediate response from the BGN.
BGN Response and Investigation
Nanik Sudaryati Deyang has ordered regional coordinators in Surakarta, Boyolali, Sragen, and Karanganyar to conduct on-site inspections to gather data on SPPGs affected by these practices. She emphasized that the administrative and legal responsibility for financial reporting rests with the kitchen managers and warned against compromising with partners involved in price manipulation.
Strict Sanctions for Violators
The BGN is prepared to impose strict sanctions, including suspension, against partners found guilty of inflating prices or monopolizing food suppliers. Deyang stated that SPPGs should prioritize empowering local farmer groups, breeder groups, fishermen groups, cooperatives, and Micro, Little, and Medium Enterprises (MSMEs) as suppliers, avoiding cooperatives established by partners to circumvent regulations.
Supplier Diversity Requirements
SPPGs are prohibited from arbitrarily rejecting supplies from local producers and are required to foster relationships with at least 15 food raw material suppliers to meet their needs. This requirement is outlined in Presidential Regulation Number 115 of 2025 concerning the implementation of the MBG program.
Program Overview
The Free Nutritious Meals (MBG) program, launched by President Prabowo Subianto, aims to improve nutritional intake for Indonesian children, toddlers, breastfeeding mothers, and pregnant women. As of February 13, 2026, the program was providing daily meals to over 60 million people, with expectations to exceed 80 million this year. Antara News reported on February 15, 2026, that the program has too created nearly 1 million jobs across Indonesia.
The BGN has set the budget for food ingredients at Rp8,000 to Rp10,000 per portion, depending on the recipient’s age group, with an additional Rp3,000 per portion allocated for operational costs and incentives.