Indonesian Political, Business & Finance News

Attorney General's Office Still Calculating Profits of Former BGN Head Dadan and Associates from Free Nutritious Meal Program Incentives

| Source: CNN_ID Translated from Indonesian | Legal
Attorney General's Office Still Calculating Profits of Former BGN Head Dadan and Associates from Free Nutritious Meal Program Incentives
Image: CNN_ID

The Attorney General’s Office (Kejagung) has stated that it is still calculating the total amount of profit received by Dadan Hindayana and his associates from partners of the Nutrition Fulfillment Service Unit (SPPG) within the Free Nutritious Meal (MBG) programme.

Syarief Sulaeman Nahdi, Director of Investigation for the Junior Attorney General for Special Crimes, explained that the MBG programme should ideally be managed by foundations affiliated with the recipient schools. However, he noted that in practice, many SPPGs were appointed because they had affiliations with high-ranking officials within the BGN. Syarief mentioned that these foundations essentially did not meet the requirements to become SPPG partners.

“Nevertheless, they were appointed through the manipulation of the verification process on the BGN partner portal, driven by the influence of the suspects,” he stated during a press conference on Wednesday (3/6).

He explained that these actions were carried out by the former Head of BGN, Dadan Hindayana, alongside two former Deputy Heads of BGN, Sony Sanjaya and Lodewyk Pusung. “These foundations receive billions of rupiah in incentives every day, and these foundations are affiliated with, among others, Mr DH, Mr SS, and Mr LP,” he added.

Despite these findings, Syarief stated that authorities are still tracing the flow of funds received by Dadan and his associates from every SPPG receiving these incentives. “The calculation is still ongoing. Therefore, it is still in progress, and we cannot yet disclose the exact total,” he said.

Furthermore, Syarief revealed that Dadan and his associates also engaged in the procurement of goods and services within the BGN that did not align with actual field requirements. The three suspects are also accused of price mark-ups during procurement, resulting in losses that undermined the operational implementation of the MBG programme. He detailed the irregular procurements as follows:

  1. The procurement of 21,801 electric motorcycles, with a total value of approximately Rp1 trillion.

  2. The procurement of 32,000 pairs of shoes that did not meet regulations and involved mark-ups.

  3. The procurement of over 31,000 tablets that did not meet regulations and involved mark-ups.

  4. The procurement of 5,400 units of 75-inch televisions that did not meet regulations and involved price mark-ups.

As a result of these actions, Syarief stated that state financial losses have occurred. The three individuals have been named suspects and have been detained at the Salemba Detention Centre (Kejagung branch) and the South Jakarta District Attorney’s office.

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