ICW Uncovers Allegations of Markups and Monopolies in MBG Programme
Indonesia Corruption Watch has uncovered several indications of irregularities in the implementation of the free nutritious meals (MBG) programme. Alleged deviations are evident from budget markups and procurement disorganisation to the involvement of influential parties in the supply chain.
ICW researcher Eva Nurcahyani stated that these findings were obtained from monitoring in several regions, including West Nusa Tenggara (NTB), the Special Region of Yogyakarta, West Bandung Regency, and Bandung Regency. The monitoring involved a network of observers and alumni of ICW’s anti-corruption school.
“These findings cover three clusters: budget, procurement, and relations with influential parties such as politicians and law enforcement officials,” Eva said when met at ICW’s office in South Jakarta on Tuesday, 28 April 2026.
In the budget cluster, ICW found significant differences in the costs of building nutrition fulfilment service units (SPPG). In some locations, construction costs were reported to vary from Rp 600 million to Rp 2.5 billion, without clear standards.
According to Eva, this inconsistency indicates a lack of transparent pricing benchmarks, even though government regulations actually require detailed cost breakdowns. “In fact, referring to Presidential Regulation Number 115 of 2025, governance provisions are already outlined, requiring SPPG to provide detailed benchmarks on construction prices and others. But here, there are none,” she said.
Additionally, ICW found indications of markups in food ingredient prices. Based on interviews with suppliers, there were price differences of Rp 2,000 to Rp 5,000 compared to market prices. This practice is suspected to occur through collaboration between kitchen managers and suppliers, then reported to the government for cost reimbursement.
“There are no comparative price surveys, administration is not transparent, and there are discrepancies between actual prices and reports,” she said.
Another finding was the deduction of costs for ompreng or food containers, impacting food quality. ICW also noted discrepancies between the budget per serving and the quality received, found in at least 14 monitoring points across various regions.
The issues do not stop at the budget. In the procurement cluster, ICW highlighted practices that tend towards monopolistic behaviour. Another ICW researcher, Rofi’, said that the selection of raw material suppliers is often based on personal relations, such as family or closeness to foundation officials.
“The procurement model tends to be closed and controlled by certain parties, making it difficult for suppliers outside the network to enter,” said Rofi’.
He also revealed patterns of forming cooperatives that function as sole vendors to supply raw materials, thereby narrowing competition.
Furthermore, ICW found minimal transparency in memoranda of understanding (MoU) between programme implementers and beneficiary schools. According to Rofi’, these documents generally only contain agreements to receive the programme without details on raw materials, prices, or respective responsibilities.
ICW also noted allegations of fictitious procurement, including the provision of facilities that are merely formalities to meet standards but not actually used.
Further, the findings show involvement of influential parties in the procurement chain. In several regions, ICW found indications of involvement by officials, political actors, and religious figures in controlling raw material supplies.
“This indicates potential conflicts of interest and interventions in the procurement process,” said Rofi’.
ICW assesses that these various findings indicate weaknesses in the MBG programme’s governance, particularly in terms of transparency and accountability. Without improvements, the programme aimed at enhancing public nutrition risks being off-target and vulnerable to misuse.
Tempo has attempted to seek responses from the Head of the National Nutrition Agency, Dadan Hindayan, and Deputy Head of the National Nutrition Agency, Nanik Sudaryati Deyang, regarding ICW’s findings. However, as of this report, Dadan and Nanik have not provided answers.