Indonesian Political, Business & Finance News

BGN: Many MBG/SPPG Units Mark Up Raw Material Prices

| Source: TEMPO_ID | Social Policy

The Deputy Head of the National Nutrition Agency (BGN), Nanik Sudaryati Deyang, stated that she had received reports about owners of free nutritious meal kitchens (MBG) or nutrition service units (SPPG) inflating the prices of raw materials. Nanik received these reports during a coordination meeting between the BGN and 933 managers of MBG kitchens in the cities of Surakarta, Boyolali, Sragen, and Karanganyar in Solo, Central Java, on Tuesday evening, February 24, 2026.

When contacted, Nanik declined to disclose the number of complaints she had received. In a written statement, Nanik revealed that the reports came from several heads of SPPG units who stated that there were fraudulent practices in the management of MBG in the region.

“Many heads of SPPG reported that partners frequently marked up prices above the highest retail price (HET) and forced them to accept poor-quality raw materials,” said Nanik, as quoted on Thursday, February 26, 2026.

In response to the reports, Nanik ordered the regional coordinators for Surakarta, Boyolali, Sragen, and Karanganyar to conduct on-site inspections of SPPG units suspected of adding extra costs to the original prices of raw materials. Nanik also warned kitchen staff, including heads of SPPG, financial supervisors, and nutrition supervisors, against colluding with fraudulent kitchen owners.

“Never agree to their demands, especially do not cooperate with SPPG partners who mark up the prices of food raw materials for MBG, especially with poor-quality food ingredients,” she said.

According to Nanik, SPPG staff are vulnerable to legal problems if the Financial Supervisory Agency finds evidence of price markups above the HET in financial reports. Meanwhile, she said, kitchen owners could find loopholes to evade responsibility.

She also threatened to suspend the operating licenses of kitchens found to be engaging in price manipulation. Nanik conveyed her message to the SPPG partners. “If any partners are found to be marking up food prices and only providing one or two suppliers, then I will suspend them,” she said.

Nanik emphasized that SPPG units must source raw materials for MBG from at least 15 different suppliers, especially local businesses in the fields of agriculture, animal husbandry, cooperatives, and MSMEs. This, she said, would ensure that the community around the SPPG location can benefit from this priority program of President Prabowo Subianto.

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