Indonesia Uses Free Nutrition Program to Absorb Egg Surplus

Indonesia's government is deploying the "Makan Bergizi Gratis" (MBG) program to address a surplus in egg production and support farmers struggling with falling prices. Minister of Trade Budi Santoso announced that the initiative will absorb excess eggs, particularly in regions like Blitar, East Java, where prices have significantly decreased due to increased output.

The Ministry of Trade has collaborated with the National Nutrition Agency (BGN) to ensure that local Nutrition Service Fulfillment Units (SPPG) purchase eggs from farmers. "We have coordinated with the BGN, with the new head of BGN, SPPG in those regions are obliged to absorb eggs," Budi stated in Jakarta on Thursday, June 4, 2026. This measure aims to stabilize egg prices closer to the reference price, ensuring better returns for farmers.

Currently, national egg production shows a surplus of 12 percent, indicating robust performance in the livestock sector. The primary challenge now lies in effectively managing this increased supply to ensure optimal market absorption. The government is also developing more flexible food aid schemes. Commodities experiencing price pressure due to abundant supply, such as eggs and potentially chicken meat, can be incorporated into food assistance programs to bolster demand.

"Now, when chicken meat also drops, it can be absorbed too," Budi added, suggesting the strategy could be applied to other agricultural products facing similar market conditions. The government's focus is on ensuring that increased production benefits the sector without leading to unsustainable price drops for producers.

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We have coordinated with the BGN, with the new head of BGN, SPPG in those regions are obliged to absorb eggs.