Indonesia’s ambitious Free Nutritious Meals (MBG) program is driving a surge in demand for food trays, prompting the government to authorize imports despite concerns from local manufacturers.
The Indonesian National Importers Association (GINSI) urged a balanced approach, warning that while imports are necessary to meet initial demand, the long-term impact on domestic producers must be carefully managed.
“Imports are essential at this stage because local supply cannot yet meet the scale required,” Erwin Taufan, Deputy Chairman of GINSI, said on Wednesday, August 6, 2025. “But once domestic capacity catches up, protection for local industries and MSMEs must be ensured.”
The MBG program, which aims to provide free nutritious meals to students nationwide, requires an estimated 83.5 million food trays and the development of 35,000 kitchen facilities nationwide. Currently, domestic manufacturers have only produced about 10 million units, according to GINSI data.
Each kitchen is estimated to need 3,000 to 3,500 trays. While the government has set a target of 30,000 kitchens, only around 2,000 are operational as of early August — highlighting a significant supply gap.
Earlier this week, Trade Minister Budi Santoso confirmed the government’s decision to allow continued imports of food trays despite pushback from local industry players.
“These food trays are being imported to support the free nutritious meals initiative,” Budi said in a YouTube broadcast by the Ministry of Trade on Tuesday. “The demand is so high that relying solely on domestic products is not yet feasible.”
While affirming support for Indonesian-made goods, Budi stressed that the immediate priority is to ensure the MBG program rolls out without delays.
“Domestic production is welcome, but imports are also necessary. Our needs are immense,” he said.
The government’s stance reflects a delicate balancing act between securing sufficient supply for a flagship social program and safeguarding the interests of local manufacturers still scaling up their production capabilities.