Allegations of 'Proxy Foundations' in Free Nutritious Meal Programme Prompt Attorney General's Office Investigation
The National Nutrition Agency (BGN) has revealed allegations of ‘proxy foundation’ practices affiliated with certain internal officials during the implementation of the Free Nutritious Meal (MBG) programme. These foundations allegedly obtain approval to manage kitchen sites despite lacking capital, subsequently offering these sites to investors or partners in exchange for mandatory kickbacks.
BGN Head, Sudaryono, stated that the matter is currently being investigated in collaboration with the Attorney General’s Office. He noted that this scheme deviates significantly from the original concept of the MBG programme. “In essence, a partner is meant to be an investor,” Sudaryono said during a press conference at the BGN Office on Friday (31/07/2026).
He explained that the MBG programme was originally designed so that partners intending to build kitchens would use their own capital. To meet administrative requirements, partners are required to establish a foundation before submitting an application for approval to the BGN. “The partner must have the funds to build the kitchen. They must first form a foundation, submit it to the BGN, and once approved, they can proceed with construction,” he clarified.
However, the BGN suspects deviations have occurred. Sudaryono mentioned that certain individuals within the previous BGN administration allegedly prepared specific foundations to secure approvals for kitchen management sites. “Internal officials from the previous period prepared these foundations, and they were approved because of their internal connections,” he said.
Sudaryono noted that the foundations that have received approval often lack the capital to actually build the kitchens. Instead, they offer these kitchen sites to investors with the condition that a portion of the funds must be paid to the foundation. “Once the foundation is approved, they market this site to partners. When the partner agrees to build, there is a deduction or a fee that must be paid to this foundation,” he explained.
Sudaryono stated that this practice is currently being scrutinised by the Attorney General’s Office. The BGN suspects a link between internal officials and specific foundations that receive these payments from partners.
He warned that such levies could potentially squeeze kitchen operational costs, which may ultimately impact the quality of food provided to beneficiaries. “Because they have to provide a kickback, they reduce the food quality to accommodate the budget required for these deductions,” he added.
The BGN is currently developing a new scheme to prevent such practices from recurring. According to Sudaryono, the party most disadvantaged by this pattern is the partner who provides the actual investment for the kitchens. “The partner is the one sacrificing the most because they are the ones investing. Meanwhile, certain foundations profit without effort, simply by leveraging internal connections to demand cuts. This is what we intend to rectify,” he asserted.