Indonesian Political, Business & Finance News

BGN Claims Rp 6 Million Daily Incentive for Nutrition Facilities is Efficient

| Source: TEMPO_ID Translated from Indonesian | Social Policy

The National Nutrition Agency (BGN) has responded to circulating claims that its incentive policy for nutrition service facilities (SPPG) constitutes wasteful spending. BGN head Dadan Hindayana asserted that the Rp 6 million daily incentive scheme represents an efficient strategy with minimal risk, rather than profligacy.

Dadan outlined several fundamental principles underpinning the partnership scheme. Firstly, the Rp 6 million daily payment is not development funding from the state budget but rather forms part of the payment mechanism for SPPG services already in operation. All physical infrastructure development is conducted through independent investment by partners.

Secondly, partners bear all risks comprehensively, from construction and operational implementation through to evaluation and natural disaster liability. For instance, when one SPPG facility in Aceh suffered flood damage, the losses fell entirely upon the partner and not BGN, with partners obligated to reconstruct without additional state budget burden.

“As occurred in Aceh when an SPPG was swept away by floods, the partner bore the loss, not BGN—they had to rebuild. Thus we transfer total risk to the partner, which is why I say the Rp 6 million is highly efficient because BGN expends not a single rupiah on maintenance, repairs, and so forth,” Dadan stated in an official statement on Friday, 27 February 2026.

Furthermore, Dadan noted that partner-led construction necessarily operates more efficiently since partners cannot markup costs to themselves. Partners will construct facilities optimally according to service requirements.

One example cited was the SPPG construction by Persatuan Islam (Persis), which Dadan assessed as excellent with an investment value of approximately Rp 3 billion. “I observed yesterday that the SPPG constructed by the Persatuan Islam Islamic Boarding School was exceptionally fine, built with three billion rupiah in funding. I am confident that if constructed with state budget funding, it would cost six billion, so we have already achieved more than 50 per cent efficiency,” Dadan stated.

The most strategically valuable aspect, according to Dadan, is the advantage in time efficiency. Through the partnership scheme, representative facilities can be completed in approximately two months. “Facilities as elegant as those of Persis, the Police, or other fine buildings can be completed within two months,” he said.

Utilising the state budget, Dadan explained, involves substantially longer processes owing to various consultations and procedures. “First, consultants must be appointed. Planning consultants take how many months? Two months. Then correspondence to local government for land lease, how many months? One month,” he noted.

The process continues beyond this point, Dadan explained, and once land is obtained, surveying can reveal unsuitability. “Then what happens? You must relocate. When relocating, what happens? Permission must be sought from the Ministry of Finance to shift the location—another month. All completed. What next? Tender. A 45-day tender. Whilst partner-built facilities are completed within 45 days,” Dadan recounted.

Currently, BGN operates 24,122 SPPG facilities, all constructed through the partnership scheme and operational. Average construction reaches 50 SPPG facilities per day. This achievement evidences that the partnership approach delivers significant acceleration whilst preserving efficiency and budgetary accountability.

BGN therefore contends that the Rp 6 million daily SPPG facility incentive policy represents not wasteful expenditure but rather a strategy ensuring nutrition service delivery proceeds rapidly and efficiently whilst minimising state fiscal risk, whilst upholding good governance principles.

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