Indonesia’s National Nutrition Agency (BGN) is preparing Loka MBG, a marketplace designed to connect kitchens in the Free Nutritious Meals (MBG) program directly with local farmer and livestock-producer associations and cooperatives. BGN chief Sudaryono said the platform is intended to reduce intermediaries and organize food procurement around government reference prices.

The plan was presented as part of BGN’s governance overhaul during Sudaryono’s first 100 days as its chief. Bisnis.com reported that BGN closed more than 2,000 kitchens it considered noncompliant with health requirements, dismissed 249 civil servants for disciplinary violations and said it returned Rp44 trillion in budget savings to the state treasury.

## Direct supply links for seven food categories

Under the Loka MBG plan, local farmer and livestock cooperatives and associations would be able to supply products through the marketplace. BGN is preparing it with the Ministry of Primary and Secondary Education, using the SIPLah system framework that has been used to manage School Operational Assistance (BOS) funds.

Sudaryono cited indications of margin manipulation as one reason for developing the platform. Bisnis.com’s report described kitchen operators who allegedly bought ingredients at lower market prices but billed the state at standard prices. A marketplace using government reference prices is expected to make procurement more transparent and shorten the distribution chain.

The initial plan prioritizes seven food categories: rice, cooking oil, chicken, beef and buffalo meat, eggs, fish and milk. BGN said these products require special handling and affect inflation dynamics as well as food availability.

## Reference prices for buyers and producers

The pricing mechanism is designed to moderate volatility on both sides. When market prices rise, MBG kitchens are expected to remain able to buy ingredients at an affordable government reference price. Conversely, if prices at the producer level fall, kitchens would still be required to buy at the reference price so farmers and livestock producers are not harmed by the decline.

Loka MBG is therefore designed as both a procurement channel and a price-balancing mechanism. However, the report said the platform was still being prepared. Its impact cannot be assessed until it is implemented and transactions take place.

## Program oversight

As part of its governance changes, BGN also cited daily expenditure reports required from all kitchens, daily inspections and centrally connected CCTV monitoring supported by artificial intelligence. The agency said the steps are intended to strengthen accountability for program spending.

The figures on kitchen closures, staff dismissals and budget savings in the source report were results presented by BGN through Sudaryono. Loka MBG remains a platform under preparation, so its implementation and outcomes still need to be monitored.

Source: Mutiara Nabila, “100 Hari BGN Sudaryono: Tutup 2.000 Dapur MBG Bermasalah hingga Bikin Marketplace,” Bisnis.com, October 30, 2026. https://ekonomi.bisnis.com/read/20261030/12/2016939/100-hari-bgn-sudaryono-tutup-2000-dapur-mbg-bermasalah-hingga-bikin-marketplace