Trade Minister Claims MBG Resumption Helped Stabilize Egg Prices

Trade Minister Claims MBG Resumption Helped: Minister Highlights MBG Program's Role in Stabilizing Egg Market Tempatdonasi.com – Indonesia's Trade

Minister Highlights MBG Program’s Role in Stabilizing Egg Market

Tempatdonasi.com – Indonesia’s Trade Minister, Budi Santoso, announced that the nation’s staple commodity prices have shown signs of stabilization following the restart of the Free Nutritious Meals initiative. This development comes after an extended period of school holidays that had disrupted normal market patterns. The minister provided this update during his visit to Yogyakarta on Thursday, July 23, 2026, where he discussed the positive impact of the program on local markets.

According to Budi, recent market observations indicate a favorable trend. He noted that while prices had experienced some decline the previous day, the absorption capacity of the market has improved considerably. This improvement is largely attributed to the MBG program’s return to full operation, which has created more predictable demand patterns for agricultural producers across the country.

Egg Prices Demonstrate Market Recovery

The minister specifically pointed to egg prices as a clear indicator of the program’s effectiveness. During the temporary suspension of the MBG initiative, egg prices had dropped significantly to approximately Rp26,000 per kilogram. This represented a notable decrease from the government’s established maximum retail price of Rp30,000 per kilogram, which had been set to protect producers from excessive price volatility.

“Yesterday, prices did decline, but absorption has improved now, partly because the MBG program has resumed,” Budi explained to reporters in Yogyakarta.

Following the program’s resumption, egg prices have stabilized around Rp28,000 per kilogram. The minister emphasized that this level represents a healthy market position, neither too low to discourage producers nor too high for consumers. This balanced pricing structure demonstrates how consistent government procurement can support both producers and the broader economy.

MBG as a Market Stabilization Tool

Budi Santoso cautioned that extended periods of declining commodity prices could create serious problems for the agricultural sector. When prices remain low for too long, producers may become discouraged and reduce their production levels. This reduction in supply could eventually lead to more dramatic price increases when shortages develop, creating a cycle of instability that harms both farmers and consumers.

“When producers increase production, there is a possibility that demand will not be sufficient. But when production is reduced, rising demand could eventually push prices higher,” Budi said.

The minister explained that the MBG program addresses this challenge by providing producers with greater certainty about future demand. Before the program’s introduction, staple food prices frequently experienced significant fluctuations because demand was often unpredictable. Farmers had difficulty planning their production schedules, which led to periods of oversupply followed by shortages.

With the MBG program operating consistently, producers can make more informed decisions about how much to produce. This predictability helps prevent the extreme price swings that characterized the market in previous years. The government’s regular purchases through the program create a stable baseline demand that supports producers even when other market conditions change.

Broader Economic Benefits

The minister highlighted that the benefits of the MBG program extend beyond just livestock farmers. The consistent demand created by the program supports a wider network of economic participants, including agricultural producers and various related sectors. This interconnected system of production and distribution creates additional economic stability throughout the country.

“Not only livestock, but also agriculture and other sectors will be involved. This involvement is certainly very beneficial,” he added.

The ripple effects of the MBG program can be seen in multiple areas of the economy. When livestock farmers have confidence in their market, they invest more in their operations. This increased investment benefits feed suppliers, transportation companies, and other businesses that support the agricultural sector. Similarly, when agricultural producers see stable demand, they are more likely to expand their operations and hire additional workers.

The minister’s comments came at an important time for Indonesia’s economy. With global market conditions remaining uncertain, having domestic programs that stabilize local markets provides an additional layer of protection. The MBG initiative demonstrates how government intervention can create positive outcomes for both producers and consumers when implemented effectively.

As the program continues to operate, officials will be monitoring its impact on various commodity markets. The initial results suggest that the MBG program is achieving its goals of stabilizing prices and supporting producers. If these trends continue, the program could serve as a model for other agricultural stabilization efforts in the future.