ICW Reports Head of BGN to KPK Over Alleged Markup in Halal Certification Services
There are two respondents we are reporting. First, the Head of BGN with initials DH. Then the second respondent from the provider, PT BKI, a Persero. The potential state loss we calculated is Rp49.5 billion from problematic governance related to the procurement of these halal certification services,” said the Head of the Legal and Investigation Division of ICW, Wana Alamsyah, to reporters at the KPK on Thursday (7/5/2026).
On the first aspect, Wana explained there were five procurement packages for halal certification with a planned budget of Rp200 billion. They were then split into five procurement packages worth Rp50 billion each.
The issue, according to Wana, is that under the Presidential Regulation on SPPG Governance, SPPG itself should conduct the certifications. Moreover, SPPG already receives incentives, so halal certification should not be burdened on MBG.
“The problem is that in the provisions of Presidential Regulation 115 of 2025 on SPPG Governance, it is known that SPPG conducts the halal certification, not BGN,” he said.
It is also suspected that the packages were split to avoid the Head of BGN’s responsibility for the decision. The implementation of halal certification was 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 inspection institutions,” he stated.
ICW also noted allegations of a budget markup of over 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 finally, this is one of our key findings, there is a suspected markup related to halal certification of around Rp49 billion,” he added.
“BGN conducted procurement in four stages of halal certification, which realised around Rp141 billion, which we suspect involves markup from the management of halal certification services by BGN,” he continued.
Separately, KPK Spokesperson Budi Prasetyo stated that the public report will undergo further clarification in its process. Developments in the investigation will be directly communicated to the reporter.
“From that report, the stages will certainly involve review and clarification by the public complaints team. And every progress, we will also communicate to the reporting party,” 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 relevant stakeholders,” he said.
Response from the Head of BGN
Dadan Hindayana responded to the report. He expressed appreciation for the attention given by ICW.
“Thank you to ICW for giving special attention to Halal Certification,” said Dadan to reporters on Monday (11/5/2026).
Dadan then explained that the certification falls under the 2025 budget backlog that must be completed in 2026. He emphasised that the entire payment process will still go through supervision and evaluation mechanisms by relevant institutions.
“We need to convey that the certification activity is part of the 2025 backlog that must be settled with the 2026 budget,” said Dadan.
“Before payment, it will certainly be reviewed by BPKP and also APIP. So everything will be adjusted to prevailing general prices,” he continued.