Indonesia’s strategy to escape “middle-income trap”

The Indonesian government aims to optimise Indonesia's demographic bonus by developing a highly skilled, healthy, intelligent, and productive workforce that can lead the nation toward high-income status in the future.

Director of Nutritional Food Provision and Distribution at the National Nutrition Agency (BGN) of Indonesia Nurjaeni (Photo: ANTARA)
Director of Nutritional Food Provision and Distribution at the National Nutrition Agency (BGN) of Indonesia Nurjaeni (Photo: ANTARA)

Jakarta (VNA) - The Free Nutritious Meal (MBG) programme is part of the Indonesian government’s strategy to help the country escape the middle-income trap.

Speaking at the Sustainable Development Annual Conference (SAC) 2025 Director of Nutritional Food Provision and Distribution at the National Nutrition Agency (BGN) Nurjaeni said that through this programme, the government aims to optimise Indonesia's demographic bonus by developing a highly skilled, healthy, intelligent, and productive workforce that can lead the nation toward high-income status in the future.

He emphasised that improving nutrition quality is a key foundation for preparing a productive and innovative workforce.

According to Nurjaeni, many developed countries achieved strong economic growth not because of abundant natural resources, but because they invested in human capital.

He added that the country needs to build quality human resources. The nation can see examples of many developed nations that lack natural resources but have succeeded in becoming advanced economies.

In addition to improving nutrition among Indonesia’s youth, Nurjaeni highlighted that the MBG programme is also designed to stimulate local economies.

He explained that of the 15,000 IDR (approximately 0.9 USD) allocated for each meal package, 10,000 IDR is used to purchase food from local farmers, fishermen, and livestock breeders.

Meanwhile, 3,000 IDR is allocated for food processing operations and local workers’ wages, while 2,000 IDR is invested in developing kitchen facilities.

The agency collaborates with various local small and medium enterprises (SMEs), Village-Owned Enterprises (BUMDes), and Village Cooperatives to strengthen the local food supply chain for the programme./.


VNA

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