TEMPO.CO, Jakarta – Indonesia's Trade Minister Budi Santoso said prices of staple commodities have begun to stabilize following the resumption of Free Nutritious Meals (MBG) program after a prolonged school holiday.
"Yesterday, prices did decline, but absorption has improved now, partly because the MBG program has resumed," Budi said in Yogyakarta on Thursday, July 23, 2026.
Budi cited egg prices as an example. When the MBG program was temporarily suspended, egg prices fell to around Rp26,000 per kilogram, compared with the government's highest retail price of Rp30,000 per kilogram.
"Now egg prices are around Rp28,000, so it is better. The price is not too low," he said.
Minister Says MBG is a Market Balancer
Budi warned that prolonged declines in commodity prices could discourage producers from continuing production, potentially reducing supply and causing sharper price increases when shortages occur.
He said the MBG program could help balance supply and demand by providing more certainty for producers. Before the program was introduced, staple food prices often experienced significant fluctuations due to unpredictable demand.
"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.
He added that maintaining consistent production would benefit the broader economic ecosystem, involving not only livestock farmers but also agricultural producers and other related sectors.
"Not only livestock, but also agriculture and other sectors will be involved. This involvement is certainly very beneficial," he said.
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