Key facts
- Food staple prices in Indonesia have dropped during the school holiday period.
- The decline is linked to the temporary suspension of President Prabowo Subianto's free nutritious meal (MBG) program.
- Chicken prices have fallen significantly, from 43,000 IDR to 33,000 IDR per kg in Medan.
- Egg prices also decreased from 30,600 IDR to 28,300 IDR per kg in Deli Serdang.
- Vegetable prices are volatile due to supply and seasonal factors, unlike the consistent demand for animal protein.
- Critics suggest reallocating MBG program funds to disaster relief and stunting improvement initiatives.
Food staple prices in Indonesia have seen a notable decrease during the ongoing school holiday, a trend largely attributed to the temporary suspension of President Prabowo Subianto's flagship free nutritious meal (MBG) program. The pause in institutional procurement has directly impacted demand for items like chicken and eggs, leading to significant price reductions in several regions.
In Medan, chicken prices have fallen from 43,000 IDR per kg to approximately 33,000 IDR per kg. Similarly, egg prices in Deli Serdang dropped from 30,600 IDR per kg in May to 28,300 IDR per kg by late June. This contrasts with vegetable prices, which remain volatile due to supply and seasonal factors, as kitchens can more easily substitute these items compared to consistent demand for animal protein.
Despite the price relief for consumers, the National Nutrition Agency (BGN) has faced criticism for continuing the MBG program during school breaks. Charles Honoris, Deputy Chair of the House of Representatives’ Commission IX, has urged the government to review the program's implementation during school holidays, suggesting that funds could be reallocated to more pressing priorities such as disaster relief for flood victims in Sumatra and nutrition improvement initiatives in regions with high stunting rates. Economists note that the MBG program's impact highlights the significance of institutional demand for price stability and that stakeholders should monitor whether these price shifts are temporary or indicative of broader economic challenges.