BGN Explains SPPG Incentive Scheme Based on Violation Levels

The National Nutrition Agency states that the provision of incentives to Nutrition Fulfilment Service Units (SPPG) is not automatically halted when a unit is placed on suspended status. The decision to grant or withhold incentives is determined based on the level of violation and the causes of the issues that arise.

Head of BGN Dadan Hindayana said this scheme is applied to differentiate between technical errors that can still be corrected and serious systemic violations. “This includes unhealthy practices such as supplier monopolies or price manipulation, which clearly do not qualify for incentives,” Dadan stated in a written statement, quoted on Thursday, 30 April 2026.

In cases of extraordinary incidents, BGN divides assessments into several categories. If an extraordinary incident is caused by negligence from partners or foundations, such as inadequate kitchen facilities or substandard raw materials, the SPPG is definitely ineligible for incentives.

Conversely, if the issue arises from operational technical aspects in the kitchen, such as suboptimal implementation of standard operating procedures, the SPPG can still receive incentives despite being on suspended status. BGN assesses that errors of this type can still be corrected without indications of systemic violations.

BGN also establishes four categories of suspension as the basis for evaluation. First, prominent incidents not caused by the aid recipient’s negligence still receive incentives. Second, prominent incidents due to negligence do not receive incentives. Third, non-prominent incidents with minor corrections still receive incentives. Fourth, non-prominent incidents requiring major corrections do not receive incentives.

According to Dadan, major suspension refers to conditions that require fundamental improvements, both in terms of facilities, systems, and operational readiness, with correction times potentially reaching one month or more.

In such conditions, including if an SPPG is temporarily halted due to not meeting operational readiness standards or undergoing major renovations, incentives will not be provided. BGN data shows that out of 1,720 SPPGs currently on temporary suspension, 1,356 fall into the major category and thus do not receive incentives.