Indonesian Political, Business & Finance News

BGN: Six Million Rupiah Daily Incentive to SPPG Is Not Wasteful, But APBN Efficiency

| | Source: REPUBLIKA Translated from Indonesian | Social Policy

The provision of six million rupiah daily incentives for Nutrition Fulfilment Service Units (SPPG) has generated both support and criticism. Critics argue that the incentive is excessive and merely enriches certain parties, whilst proponents contend that it represents efficient state budget allocation.

Dadan Hindayana, Head of the National Nutrition Agency (BGN), stated that the six million rupiah daily incentive for SPPG is strategically important to prevent state budget wastage. He explained that the scheme operates as an efficiency and low-risk strategy for the state, as the government avoids substantial spending on SPPG construction because third parties bear the operational and maintenance costs.

“There are several fundamental principles in the partnership scheme. Firstly, the six million rupiah daily amount is not a development fund from the state budget, but rather part of the service payment mechanism for operational SPPG. All physical construction processes are carried out using independent investment by partners,” he stated in an official statement in Jakarta on Friday.

He further emphasised that partners bear all risks entirely, including construction risk, operational implementation, evaluation, and natural disasters. For example, when an SPPG in Aceh suffered flood damage, the losses fell entirely on the partner rather than BGN. The partner was obligated to rebuild without additional state budget burden.

“As in Aceh when the SPPG was swept away by flooding, the partner incurred the loss, not BGN; they had to rebuild. Therefore, we have transferred total risk to the partner, which is why I maintain that six million rupiah is highly efficient because BGN does not spend a single rupiah on maintenance, repairs and other matters,” he explained.

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