Trade Minister Claims MBG Boosts Staple Food Prices, Including Eggs

Indonesia's Trade Minister Budi Santoso asserts that the recently revived "Makan Bergizi Gratis" (MBG) program is playing a crucial role in stabilizing the prices of essential goods, with a notable impact on chicken egg prices.

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I'll give you an example of egg prices, what was the price yesterday? Rp 26 (thousand). Rp 26 (thousand) when the HET is how much? Rp 30 thousand, right? Rp 30 thousand HET is the Highest Retail Price.

Santoso explained that the MBG program, which aims to provide nutritious meals, has significantly boosted the absorption of eggs. This increased demand provides much-needed certainty for egg farmers, preventing them from suffering losses that could lead to production halts and subsequent shortages.

He pointed to the price of chicken eggs as a prime example. Prices have reportedly climbed from approximately Rp 26,000 per kilogram to around Rp 28,000, moving closer to the government's established highest retail price (HET) of Rp 30,000 per kilogram. This movement towards the HET indicates a healthier balance between producer and consumer interests, according to the minister.

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Producers can lose money and stop producing. If they stop producing, there will be no eggs, and prices will rise.

"If the price is too low, producers can lose money and stop producing. If they stop producing, there will be no eggs, and prices will rise," Santoso stated, emphasizing the risk of scarcity when prices fall too low. The minister believes the MBG program acts as a vital balancing mechanism for supply and demand in the market.

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Now the absorption is better because one of the factors is that MBG has also resumed. So actually MBG can be a balancer between supply and demand.