Indonesian Political, Business & Finance News

BGN: The Problem with the SPPG Electric Motorcycle Procurement is Mark-up

| Source: TEMPO_ID Translated from Indonesian | Legal

Deputy Head of the National Nutrition Agency (BGN) Agustina Arumsari has dismissed suggestions that the 21,000 electric trail motorcycles purchased for heads of nutrition service units (SPPG) were the proceeds of corruption. According to her, the vehicles were paid for using state funds.

“So I apologise if yesterday anyone suggested these were the proceeds of corruption. They were paid for with state money, not with corruption proceeds,” Arumsari said at a press conference at the BGN office in Kebon Sirih, Central Jakarta, on Tuesday, 21 July 2026.

She said the subject of the investigation is alleged mark-up, or price inflation. The amount of state losses, she said, is still being calculated by investigators.

The state losses will later be reclaimed from the suspects through the courts. “Returned to the state treasury,” Arumsari said.

Arumsari said the BGN has fully paid for the electric motorcycles from the 2025 budget this year. In her presentation before Commission IX of the House of Representatives, Agustina said the advance payment, or pre-payment, required for the purchase of the electric motorcycles amounted to Rp 243.9 billion.

A subsequent post-procurement payment, or prepaid amount, for the electric motorcycles totalled Rp 167.5 billion. Although payment has been made in full, she said the operational vehicles cannot yet be recorded as definitive machinery assets. “Because they are still under investigation by the prosecutor’s office,” Arumsari said during a hearing with Commission IX of the House on Friday, 17 July 2026.

The Attorney General’s Office is currently investigating two corruption cases at the BGN, including the alleged sale of MBG kitchen positions and the procurement of motorcycles for SPPG heads. Prosecutors have named former BGN Head Dandan Hindayana, as well as two former BGN Deputy Heads, Sony Sonjaya and Lodewyk Pusung, as suspects.

The Prosecutor’s Office has also named Andri Mulyono, a commissioner of PT Yasa Artha Trimanunggal, as a suspect. Yasa Artha Trimanunggal is the company that supplied the electric motorcycles for the SPPG.

Director of Investigation at the Deputy Attorney General for Special Crimes, Syarief Sulaeman Nahdi, explained that the motorcycle company’s commissioner is alleged to have unlawfully carried out manipulation and collusion with the BGN, from the project planning stage through to the disbursement of funds.

Andri Mulyono is alleged to have communicated actively with the committing officer to follow up on the procurement plan, even though the official procurement process had not yet begun.

At the time, PT Yasa Artha Trimanunggal had also not met the requirements to become a supplier. To get the company through, Andri is alleged to have communicated unlawfully with the BGN. “PT Yasa did not have any dealers or active workshops, and did not meet the requirements as an electric motorcycle vendor,” said Syarief.

In addition, Andri is alleged to have inflated the price of each electric motorcycle unit, with the aim of approaching the available budget ceiling for the procurement.

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