Economic inequality remains a structural challenge in Indonesia’s development, particularly affecting lower-income workers in the informal sector who face limited access to economic resources. This study examines the role of the Free Nutritious Meal Program (MBG/SPPG) as a community-based economic empowerment strategy in improving household welfare, identifying its potential and challenges, and analyzing its impact on local money circulation within a Keynesian framework. Using a qualitative descriptive-analytical approach and literature-based thematic analysis, the findings indicate that MBG/SPPG contributes to increased household income, economic stability, and individual capacity through job creation and skill development. The program also demonstrates significant potential in strengthening local economic structures and micro, small, and medium enterprises (MSMEs), although challenges such as limited access to capital, weak institutional coordination, and dependency risks persist. Furthermore, from a Keynesian perspective, MBG/SPPG stimulates aggregate demand and enhances local money circulation through the multiplier effect, particularly due to the high marginal propensity to consume among lower-income groups. Overall, the program functions not only as a social policy but also as a strategic fiscal instrument for promoting inclusive and sustainable local economic development.
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Sugiyanto et al. (2026) studied this question.
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