Indonesian Political, Business & Finance News

BGN to Streamline Budget, Scrap Ineffective Procurement

| Source: DETIK Translated from Indonesian | Economy
BGN to Streamline Budget, Scrap Ineffective Procurement
Image: DETIK

The National Nutrition Agency (BGN) is currently reviewing all expenditures made in 2025 as part of an effort to streamline its budget. The agency has affirmed it will not repeat procurements considered to be of little benefit or lacking direct impact on the implementation of the Free Nutritious Meals (MBG) programme.

BGN Deputy Head Agustina Arumsari stated that the agency is evaluating all spending throughout 2025. The results of this evaluation will serve as the basis for future budget planning and work programmes.

“In general, we have combed through everything that was spent in 2025,” Agustina said at the BGN office in Central Jakarta on Thursday (18/6/2026).

According to her, if there are spending plans in 2026 with outputs or benefits similar to those procured in 2025, the budget will not be executed again. “If there is BGN spending in 2026 whose output is more or less the same as in 2025, we will not execute it in 2026. That is also a form of efficiency,” she stated.

One item that previously drew public attention was the procurement of electric motorcycles for the Nutrition Fulfilment Service Units (SPPG). However, she declined to detail the specific items currently under evaluation.

She emphasised that BGN will maximise the use of items already purchased in 2025. For new procurements, the agency will be more selective to avoid repeating spending deemed less beneficial. “We also do not want to repeat spending that is less beneficial, or even useless, as happened in 2025. That is a form of budget efficiency,” she said.

Sari also revealed that part of BGN’s budget has been blocked by the Ministry of Finance through a specific mechanism. Consequently, several spending plans cannot be executed immediately without further approval. “In several budget items, the Ministry of Finance has placed them in the RO that goes into the BA BUN, which is a form of blocking. So we cannot spend it yet,” she explained.

Additionally, some budget allocations fall under a presidential directive category, requiring special permission for use. She noted that this situation has reduced the total effective budget available to BGN from its original ceiling. “So now the figure has indeed decreased from that 268. It is no longer Rp 268 trillion because some has been taken,” she added.

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