Indonesian Political, Business & Finance News

BGN Says Rp6 Million Per Day Incentive Is Return on Investment, Not Profit

| | Source: FINANCE.DETIK.COM Translated from Indonesian | Regulation
BGN Says Rp6 Million Per Day Incentive Is Return on Investment, Not Profit
Image: FINANCE.DETIK.COM

Deputy Chairman of the National Nutrition Agency (Badan Gizi Nasional - BGN), Sony Sonjaya, stressed that providing an incentive of Rp 6 million per day to the Satuan Pelayanan Program Gizi (SPPG) is a mechanism for returning investment. The incentive had drawn attention because SPPG was thought to be earning a net profit of Rp 1.8 billion per year. Sony said thousands of SPPG currently operating were built independently by partners. Therefore, the government offers a flat incentive to cover the land, building, and cooking equipment costs that partners have invested. “Big (the amount). If we suddenly get Rp 6 million a day, would you be happy? Happy if that is a profit. The problem is, who said that is profit? That is the return on investment,” Sony said during BGN Talks, quoted from the BGN YouTube account, on Friday (6/3/2026). Sony explained the average cost of building one SPPG unit could reach Rp 2-3 billion. If the incentive is set too low, partners who have helped accelerate the Free Nutritious Meals (MBG) program would actually be harmed because they cannot recoup their investment. “Well now the community is already up, then we pay, so Rp 1 million a day is enough. Then, if their capital is 3 billion, how many years will it take to recover? So don’t think, ‘oh no, this is one kitchen, 1 year Rp 1.8 billion,’ exactly,” Sony said. Furthermore, BGN would not stand by against partners building kitchens whose quality falls below standard. Starting this year, Sony said they would group SPPGs as part of the evaluation of facilities and infrastructure feasibility, including the existence of a Wastewater Treatment Plant (IPAL). Sony issued a stern warning to SPPGs that do not wish to upgrade facilities. If by December 2026 there are still SPPGs not upgrading their facilities to standard, contracts will be terminated as MBG Kitchen. “Don’t worry, this year we will do grading. There are Grade A, Grade B, Grade C, and don’t blame, later contracts will also be terminated. If by the end of December 2026, their facilities and infrastructure are not complete,” Sony explained. According to Sony, contract termination will not trigger lawsuits from partners. Because partners are considered to have recovered their investment during the contract period. “Will partners sue? I think not. Because what? They have already received, their investment has already been recovered. Then why terminate? Because they do not comply with the rules, do not want to complete the facilities and infrastructure required,” Sony said. (rea/hal)

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