Loka MBG opens new market for local egg farmers
JAKARTA, The Kabar News—Indonesia is developing a digital procurement platform that could connect local egg farmers with thousands of kitchens serving the Free Meals (MBG) program while recording...
JAKARTA, The Kabar News—Indonesia is developing a digital procurement platform that could connect local egg farmers with thousands of kitchens serving the Free Meals (MBG) program while recording prices and transactions more transparently.
The platform, known as Loka MBG, will adapt the Education Ministry’s SIPLah school-procurement ecosystem. The National Nutrition Agency (BGN) and the Primary and Secondary Education Ministry formalized their cooperation on Oct. 30, with nationwide implementation targeted for January 2027.
Under the proposed system, verified suppliers—including farmer cooperatives and associations—will be able to offer eggs and other food products through an online marketplace. The nutrition fulfillment service units (SPPG) could then compare suppliers and document their purchases digitally.
The government expects the system to shorten procurement chains and give local producers clearer access to institutional buyers. It could also make transactions easier to audit by recording the supplier, price and origin of each product.
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The Agriculture Ministry has encouraged SPPG kitchens to source eggs from nearby farmers using the government’s reference purchase price of Rp26,500 (US$1.58) per kilogram.
“SPPGs absorb the eggs, farmers gain a market, and the public’s animal-protein needs are met. This is what we must safeguard together,” Livestock and Animal Health Director General Agung Suganda said in a statement published by the Agriculture Ministry.
The price serves as a policy benchmark rather than a guarantee that every transaction will occur at exactly that level. Actual procurement will still depend on product quality, supply conditions, delivery costs and compliance with food-safety requirements.
The ministry began pressing for stronger local egg procurement after prices in several production centers fell below the reference level. It sent a recommendation to BGN on May 8, prompting the agency to encourage SPPGs to increase egg use and prioritize nearby producers.
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In East Java, BGN proposed serving eggs up to three times a week to support absorption, according to an agency statement.
BGN reports that by the end of October, it had verified more than 58 million MBG beneficiaries. However, that figure does not mean every beneficiary receives eggs daily. SPPGs arrange menus according to nutritional standards, local availability and operational requirements.
Loka MBG is currently being tested in 40 SPPGs. BGN reported that about 400 suppliers were participating, while an Education Ministry release listed approximately 200. The agencies should reconcile that discrepancy as the trial expands.
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BGN plans to connect around 26,700 kitchens to the platform. After its initial rollout, the government expects a broader launch in December. It plans to implement the system nationwide in January, subject to technical readiness and the trial results.
BGN said the system would draw on SIPLah’s experience in price comparison and traceable transactions.
Loka MBG could provide egg farmers with a more predictable market while helping SPPGs verify their suppliers. Its impact will ultimately depend on timely payments, fair access for small producers and consistent enforcement of quality standards across Indonesia.
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