BGN Admits Many SPPG Suspended for Purchasing Raw Materials Below Government Reference Price

The Director of Community Empowerment and Participation at Indonesia’s National Nutrition Agency (BGN), Tengku Syahdana, has acknowledged that many nutritional service fulfilment units (SPPG) have been suspended for purchasing raw materials from breeders and farmers below the government reference price (HAP). He made the statement after attending a coordination meeting on local raw material absorption for the Free Nutritious Meals (MBG) programme at the Central Java Provincial Government Office in Semarang on Friday (19/6/2026).

During the meeting, representatives of livestock groups complained about SPPG purchasing chicken eggs below the HAP. Their complaints were noted by Tengku. He stated that if cases are found where SPPG purchase raw materials below the HAP, the BGN will issue reprimands and warnings. If repeated, the BGN will suspend the SPPG.

He claimed the BGN has already taken action against SPPG units engaging in such practices. “Many, very many. Because we want to implement supply chain governance to enhance economic equity and grassroots economic synergy across all regions,” Tengku said when asked by journalists whether any SPPG had been warned or suspended for not purchasing raw materials in accordance with the HAP.

However, Tengku could not estimate how many SPPG had received such sanctions. “I do not hold the data,” he said. Nevertheless, he stressed that the BGN will address the issue. “If there are incidents like those mentioned, monopolies, then prices below the HAP and so forth, we will bring them into order,” he stated.

During the coordination meeting, Tengku also responded to complaints from breeders protesting about egg purchases by SPPG below the HAP. He said the BGN is currently enforcing order in the governance of the MBG programme’s implementation. “If there are indeed SPPG that are stubborn and so on, please come directly to me. I have been instructed by Mrs Nanik (Head of BGN) to directly intervene in SPPG that are, figuratively speaking, monopolising, and where there is potential for mark-ups and the like,” Tengku said. He expressed appreciation for public oversight of the SPPG. “There is oversight from the public, from breeders, from cooperatives, that is extraordinary. We will intervene through the KPPG, check directly with the regional coordinator, whether it is true or not,” he added.