BorneoEnglish: Rural Economy News Today
Showing posts with label Rural Economy. Show all posts
Showing posts with label Rural Economy. Show all posts

Monday, April 6, 2026

Minister Amran Says MBG Program Drives Rural Economic Growth

Agriculture Minister Andi Amran Sulaiman says the MBG program can drive rural economies and circulate up to Rp300 trillion, especially in horticulture and livestock sectors.
Agriculture Minister Andi Amran Sulaiman says the MBG program can drive rural economies and circulate up to Rp300 trillion, especially in horticulture and livestock sectors.

The Free Nutritious Meal Program (MBG) has been described as a key driver of rural economic growth, particularly in the food sector. Agriculture Minister Andi Amran Sulaiman emphasized that the program does not stand alone but creates a chain reaction of economic activity from upstream to downstream industries.

The statement was delivered during an event in Makassar, South Sulawesi, on Monday, highlighting the real economic impact of the MBG program on rural businesses.

"Do not view MBG as a standalone program. MBG is a driver of village economies. It stimulates horticulture activities such as vegetable farming, as well as poultry and egg businesses, moving everything from upstream to downstream," Amran said.

Rising Demand For Vegetables And Livestock Products

The MBG program has significantly increased demand for food commodities, particularly horticultural products such as vegetables, along with livestock products including chicken and eggs.

This growing demand has had a direct impact on horticulture farmers. Vegetable production has become more active due to the presence of a stable and continuous market.

Livestock farmers have also experienced positive effects. Poultry farming and egg production activities have increased as demand for food supplies continues to grow to support the MBG program.

According to Amran, millions of livestock business operators across Indonesia are benefiting from this increased demand, including those raising poultry, cattle, and goats.

"We have about 3.8 million livestock farmers. All of them are moving, from poultry to cattle to goats and beyond," he explained.

Chain Effect Revitalizes Rural Businesses

Beyond farmers and livestock breeders, distribution and food trading sectors have also gained momentum. More active supply chains have created interconnected economic ecosystems within rural communities.

The MBG program has generated a ripple effect that involves small and medium-sized enterprises (SMEs) in rural areas. Farmers, traders, distributors, and food processors are all experiencing the benefits.

As economic activity increases, villages are no longer seen only as production centers but are becoming active hubs of economic circulation.

Economic Circulation Could Reach Rp300 Trillion

The Agriculture Minister revealed that the economic circulation generated by the MBG program could reach approximately Rp300 trillion, with the majority of funds flowing within rural regions across Indonesia.

This figure is considered highly significant and capable of strengthening local economies in a sustainable manner.

If this level of economic activity continues, the MBG program is expected to reinforce the foundation of rural economies while supporting national food security.

Additionally, rural-based economic growth is seen as an important strategy to promote more equitable community welfare.

Strategic Role In Strengthening National Food Security

The MBG program is not only focused on meeting nutritional needs but also serves as a long-term strategy to strengthen national food security.

By involving various sectors from production to distribution, the program helps create a more stable and sustainable food system.

Amran expressed optimism that the MBG program will continue to deliver broad benefits, particularly in encouraging inclusive and competitive rural economic growth in the years ahead.

FAQ

What is the MBG Program?

The MBG (Free Nutritious Meal) Program is a government initiative designed to provide nutritious meals while also supporting economic growth, particularly in rural areas.

How does MBG impact rural economies?

The program increases demand for food supplies such as vegetables, chicken, and eggs, giving farmers and livestock breeders access to stable markets.

How much economic circulation is expected from MBG?

According to the Agriculture Minister, the program could generate economic circulation of around Rp300 trillion.

Who benefits from the MBG program?

Horticulture farmers, poultry breeders, food distributors, traders, and rural SMEs benefit from increased economic activity.

What are the long-term impacts of MBG?

The program is expected to strengthen national food security and improve long-term welfare for rural communities.

Tuesday, March 17, 2026

Over 2,000 Cooperatives Established To Boost South Kalimantan Economy

South Kalimantan strengthens its economy through Red and White cooperatives, with over 2,000 established to support Sharia growth and rural development.
South Kalimantan strengthens its economy through Red and White cooperatives, with over 2,000 established to support Sharia growth and rural development.

BANJARBARU – The South Kalimantan Provincial Office of Cooperatives and Small and Medium Enterprises (SMEs) has reaffirmed its commitment to strengthening the regional economic structure by focusing on the development of “Red and White” Village and Urban Cooperatives.

Head of the South Kalimantan Cooperatives and SMEs Office, Rahmaddin, stated that the initiative aligns national priority programs with the province’s development vision led by Governor H. Muhidin and Deputy Governor Hasnuryadi Sulaiman, known as “Kalsel Works” (Sustainable, Cultural, Religious, and Prosperous).

According to Rahmaddin, cooperatives play a strategic role as a key driver of regional economic growth, particularly in promoting a Sharia-based economy.

“This national program is in line with the regional mission to boost Sharia economic growth. Cooperatives serve as the backbone of development and a vital pillar of the local economy,” he said in Banjarbaru on Tuesday.

He added that strong and well-managed cooperatives will support South Kalimantan’s position as a logistics gateway for the Kalimantan region.

To ensure the program’s success, the provincial government has implemented an intensive collaboration strategy. This includes continuous mentoring for cooperative managers, strengthening institutional capacity, and improving human resources at the village and urban levels.

Rahmaddin emphasized that these achievements will provide a solid foundation for supporting National Strategic Programs (PSN) initiated by President Prabowo.

Meanwhile, Head of Institutional Affairs at the South Kalimantan Cooperatives and SMEs Office, Bambang Dedi Mulyadi, explained that the establishment of Red and White Cooperatives is supported by a strong legal framework, including Presidential Instructions No. 9 of 2025 and No. 17 of 2025.

At the regional level, the policy is reinforced by South Kalimantan Governor Regulation No. 024 of 2025.

Recent data shows significant growth in the cooperative sector across the province. To date, a total of 2,013 Red and White Village and Urban Cooperatives have been officially established and legally registered.

This includes 1,869 Village Cooperatives and 144 Urban Cooperatives spread across all regencies and cities in South Kalimantan.

With the rapid expansion of these cooperatives, the government expects rural communities to directly benefit from improved logistics access and stronger local business empowerment.

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