Indonesian Political, Business & Finance News

BGN Warns SPPG Against Inflating Prices of MBG Ingredients, Misuse of Operational Vehicles

| Source: CNBC Translated from Indonesian | Social Policy
BGN Warns SPPG Against Inflating Prices of MBG Ingredients, Misuse of Operational Vehicles
Image: CNBC

Jakarta, CNBC Indonesia- The Deputy Head of the National Nutrition Agency (BGN), Nanik Sudaryati Deyang, has issued a new warning to the Nutrition Fulfillment Service Units (SPPG) that provide services for the Free Nutritious Meal (MBG) program. She stated that she has received reports about partners frequently inflating the prices of raw food ingredients.

She reminded the heads of SPPG, financial supervisors, and nutrition supervisors not to compromise with these unethical partners, as such fraudulent practices undermine the MBG program.

“Never agree to their demands, especially if it involves cooperating with SPPG partners who inflate the prices of raw food ingredients for the MBG program, especially if the quality of the food ingredients is poor,” she said, quoted on Thursday (February 26, 2026).

She also mentioned the possibility of legal consequences, especially if the Supreme Audit Agency (BPK) finds evidence of price inflation exceeding the Highest Retail Price (HET) in the SPPG’s financial reports.

“The partners may get away with it, but you will be the ones facing legal action,” she added.

Previously, Nanik reminded suppliers of raw food ingredients for the SPPG kitchens not to be dominated by one or two suppliers directed by the partners. The SPPG should empower farmer groups, livestock groups, fishing groups, cooperatives, and MSMEs around the MBG kitchens to become suppliers of food ingredients.

The cooperatives in question should also not be artificial cooperatives created by the partners simply to circumvent the rules. Nanik also prohibited the SPPG from arbitrarily rejecting supplies of food ingredients from local farmers, livestock farmers, or fishermen.

“The SPPG must use at least 15 suppliers of raw food ingredients to meet the needs of each unit,” said Nanik.

The involvement of local communities as suppliers for the MBG kitchens is clearly regulated in Presidential Regulation (Perpres) number 115 of 2025. In Article 38, paragraph 1, it states that the implementation of the MBG should prioritize the use of domestic products and the involvement of micro-enterprises, small enterprises, individual corporations, cooperatives, village/sub-district cooperatives, and village-owned enterprises.

Operational Vehicles

On the other hand, Nanik also reminded the heads of SPPG not to use operational vehicles for shopping. According to her, the SPPG’s operational vehicles should be used for their intended purpose.

She said that she often receives reports about this, and it is not good for cleanliness or hygiene.

“The SPPG’s operational vehicles should be used to distribute Free Nutritious Meals (MBG) to beneficiary schools and health centers, not for shopping, let alone for other purposes,” she said.

“If there are still SPPG operational vehicles being used for shopping at the market, I will suspend them!” she said firmly.

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