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Attorney General's Office Uncovers Illegal Modus Operandi and Corrupt Links within MBG Foundation

| Source: CNBC Translated from Indonesian | Legal
Attorney General's Office Uncovers Illegal Modus Operandi and Corrupt Links within MBG Foundation
Image: CNBC

The Attorney General’s Office (Kejagung) has assessed that numerous foundations providing the Free Nutritious Meals (MBG) programme are engaging in unlawful activities related to conflicts of interest. This was revealed following a search and the arrest of the former Head of the National Nutrition Agency (BGN), Dadan Hindayana, on Wednesday (3/6/2026).

The Director of Investigation at the Junior Attorney General for Special Crimes, Syarief Sulaeman Nahdi, explained that the MBG programme should be managed by foundations at each school. However, in reality, the foundations appointed as partners for the Nutrition Fulfilment Service Units (SPPG) were being used as vehicles for crime and are affiliated with officials or employees of the BGD who are ineligible to serve as SPPG partners.

“What is meant by affiliation here is unlawful affiliation, involving legal breaches and conflicts of interest,” he stated at the Attorney General’s Office on Wednesday (3/6/2026).

Syarief noted that these unlawful foundations receive billions of rupiah in incentives every day. Furthermore, these foundations are linked to suspects identified by the initials DH, SS, and LP.

Syarief further stated that the three suspects also conducted the procurement of goods and services within the BGN unlawfully, intervening with Commitment Making Officers (PPK) during the preparation of Terms of Reference (KAK). Consequently, the procurement of goods and services within the BGN was not aligned with actual field requirements, and price mark-ups occurred, leading to operational losses.

Specifically, Syarief noted that the following procurements were affected by these unlawful actions:

  • The procurement of 21,801 electric motorcycles totalling approximately Rp1 trillion

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

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

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

“This case has resulted in state financial losses. The suspects are alleged to have violated Articles 603 and 604 in conjunction with Article 20 of Law Number 31 of 1999 and Law Number 1 of 2023 regarding the Criminal Code,” he explained.

The suspects have been detained for the next 20 days at the Salemba Detention Centre, under the jurisdiction of the Attorney General’s Office and the South Jakarta District Attorney’s Office.

Additionally, Syarief stated that there is potential for further investigation expansion should new evidence emerge, noting that the Attorney General’s investigation has only just begun. Syarief also admitted that the authorities are still in the process of calculating the total state losses resulting from the unlawful actions of the MBG provider foundations. The Attorney General’s Office continues to coordinate with the BGN regarding the operational future of the foundations suspected of being involved in conflicts of interest.

“We are currently inventorying which affiliated foundations are ineligible to receive funds or act as partners for the BGN,” he concluded.

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