BGN Boss: Rp6 Million Daily Incentive for MBG Partners is Not Wasteful, Highly Efficient

Jakarta – The head of the National Nutrition Agency (BGN), Dadan Hindayana, has explained that the policy of providing incentives for SPPG facilities represents an efficient and low-risk state partnership scheme that is not wasteful spending.

He outlined several fundamental principles within the partnership scheme. Firstly, the Rp6 million daily incentive does not come from the state budget, but rather forms part of the payment mechanism for SPPG services already in operation. All physical construction is conducted through independent investment by partners.

Furthermore, all risks are entirely borne by partners, ranging from construction risk, operational implementation, evaluation, and natural disaster risk.

For example, when one SPPG facility in Aceh was damaged by flooding, the losses became the partner’s responsibility rather than BGN’s. The partner was obligated to rebuild without additional state budget burden.

“As in Aceh when the SPPG was swept by floods, the loss was the partner’s, not BGN’s—they had to rebuild. So we are transferring total risk to the partner, which is why I say the 6 million is very efficient because BGN does not spend a single rupiah on maintenance, repairs, and other matters,” Dadan explained.

Dadan noted that partner-led construction is necessarily more efficient since partners cannot mark up costs for themselves. Partners will construct facilities optimally according to service needs.

One example is the SPPG construction by Persatuan Islam (Persis), which is regarded as excellent with investment valued at approximately Rp3 billion.

“I saw recently the SPPG built by Pondok Pesantren Persatuan Islam (Persis) and it is extremely well-constructed, built with three billion rupiah. I am confident that if it were built using state budget funds, the value would be Rp6 billion, so we have already achieved 50 per cent greater efficiency,” Dadan stated.

Additionally, the most strategically valued aspect is the advantage in speed of execution. Through the partnership scheme, representative buildings can be completed in approximately two months.

“Buildings as elaborate as those of Persis, Polri, or other luxurious facilities can be constructed in two months, finished. But how about state budget funding? First, you must appoint a consultant. How many months for planning consultation? Two months. Then you send a letter to the local government to request land use, how many months? One month. Once you have the land, when surveyed it turns out to be unsuitable, what do you do? You must relocate. When you relocate, what do you do? Request permission from the Finance Ministry to shift the location, another month. That is finished. All finished, what do you do? You conduct a tender. How long is the tender? 45 days. Meanwhile, the partner who is building it, in 45 days it is already complete,” Dadan emphasised.