Head of National Nutrition Agency Responds After ICW Report to KPK

Head of the National Nutrition Agency (BGN) Dadan Hindayana has responded to the report by Indonesia Corruption Watch (ICW) to the Corruption Eradication Commission (KPK) regarding allegations of markup in the 2025 halal certification. Dadan has instead appreciated the attention given to the halal certification process. “Thank you to ICW for giving special attention to Halal Certification,” said Dadan, quoted by detikcom, on Monday (11/5). Furthermore, Dadan explained that the halal certification activities are part of the 2025 budget backlog that must be completed in 2026. He claimed that the entire payment process will still go through supervision and evaluation mechanisms by relevant institutions. “We need to convey that the certification activities are part of the 2025 backlog that must be completed with the 2026 budget,” said Dadan. “Before payment, it will definitely be reviewed by BPKP and also APIP. So everything will be adjusted to the prevailing general prices,” he continued. Previously, ICW reported BGN Head Dadan Hindayana and PT BKI, a Persero state-owned enterprise, regarding the markup in the halal certification procurement. ICW revealed that the halal certification procurement has problems in four main aspects. “There are two respondents we reported. First, the Head of BGN with initials DH. Then the second respondent from the provider, PT BKI, from Persero. The potential state loss we calculated is Rp49.5 billion from problematic governance related to this halal service certification procurement,” said Head of the Legal and Investigation Division of ICW, Wana Alamsyah, to reporters at the KPK, on Thursday (7/5). The first aspect, Wana explained, involves five procurement packages for halal certification with a planned budget of Rp200 billion. Then it was split into 5 procurement packages worth Rp50 billion each. The issue, said Wana, is that under the Presidential Regulation on SPPG Governance, the certification should be carried out by SPPG itself. Moreover, SPPG has already received incentives, so the halal certification does not need to be burdened on MBG. “The problem is in the provisions of Presidential Regulation 115 of 2025 on SPPG Governance, it is known that the entity conducting halal certification is SPPG, not BGN,” he stated. There is also an alleged splitting of procurement packages to avoid the BGN head’s responsibility for his decisions. The implementation of halal certification is also not carried out by the winner. “We identified the winner as a Persero SOE with initials PT BKI, which in the BPJPH institution, PT BKI is not included in the halal examination institution,” he said. ICW also noted allegations of budget markup of more than Rp49 billion. ICW’s calculations suggest the procurement should only be worth around Rp90 billion, but the amount realised by BGN is Rp141 billion. “And lastly, this is one of our key findings, there is a suspected markup related to halal certification of around Rp49 billion,” he said. “BGN conducted procurement in four stages of halal certification, which amounted to around Rp141 billion realised, which we suspect involves markup from the halal service certification management carried out by BGN,” he added. Separately, KPK Spokesperson Budi Prasetyo stated that the public report is in the stage where further clarification will be conducted. Developments in the investigation will be directly communicated to the reporter. “From that report, of course, the stages will involve review and clarification by the public complaints team. And every progress, we will also convey to the reporter,” said Budi, quoted on Friday (8/5). Budi explained that the KPK has already studied the MBG programme. In its study, the KPK has provided several recommendations to BGN. “Both in terms of regulations, business processes, and field conditions. And how stakeholders should also engage other stakeholders,” he said.