Indonesian Political, Business & Finance News

KSP's Dudung Says Reimbursement for MBG Kitchen Bridging Funds Remains Uncertain

| Source: CNN_ID Translated from Indonesian | Politics
KSP's Dudung Says Reimbursement for MBG Kitchen Bridging Funds Remains Uncertain
Image: CNN_ID

Presidential Chief of Staff (KSP) Dudung Abdurachman has stated that the government cannot yet confirm whether it will reimburse bridging funds already spent by a number of investors to construct Nutritional Fulfilment Service Units (SPPG), or kitchens for the Free Nutritious Meals (MBG) programme. “Oh, it is not certain yet (the funds will be reimbursed). I am not saying the money will be replaced. Because this will be reorganised, and certainly there will be concrete steps from the BGN,” Dudung said during a press conference at the KSP office in Central Jakarta on Wednesday. The statement was made in response to complaints from investors who claim to have spent bridging funds to build SPPG sites based on decrees issued by former officials of the National Nutrition Agency (BGN), namely the former Head of BGN Dadan Hindayana and former Deputy Head of BGN Sony Sanjaya. According to Dudung, the issue has occurred extensively in SPPG projects in underdeveloped, frontier, and outermost (3T) regions. He said a number of sites were previously determined through decrees which investors then used as a basis to obtain financing from banks. Dudung explained that investors believed the projects would proceed because the SPPG locations had been determined. On that basis, they applied for bank loans and began building the MBG kitchen facilities. However, the government is currently reorganising the MBG programme, including evaluating the previously designated SPPG sites. Consequently, the realisation of projects and any follow-up regarding the funds already spent by investors will depend on the outcome of the reorganisation and budget availability. Dudung said the Head of BGN, Nanik S Deyang, has communicated the evaluation plan. He expressed hope that some of the sites already built can still be realised in the future. He also acknowledged that the problem of operational fund disbursement is not confined to one area. According to him, quite a number of SPPGs are currently facing similar obstacles and will be part of the reorganisation process being conducted by the BGN. Dudung’s statement emerged amid demands by Sukabumi-based businessman H Mujazin, who is seeking the return of approximately Rp218.25 billion reportedly deposited as bridging funds for the MBG kitchen project. Through his legal counsel, Mujazin claimed the funds were handed over based on a memorandum of understanding signed with former BGN Deputy Head Lodewyk Pusung in September 2025. Under the agreement, the Kharisma Cendekia Indonesia (KCI) Foundation was set to obtain management rights for 97 SPPG sites after depositing the bridging funds. However, according to Mujazin’s side, the management of the promised dozens of kitchens was never realised despite the funds being transferred in several stages. The case has surfaced amid an investigation into alleged corruption in the governance of the MBG programme, which has ensnared former BGN Head Dadan Hindayana and two former BGN Deputy Heads, Lodewyk Pusung and Sony Sanjaya. All three have been named as suspects by the Attorney General’s Office (Kejagung).

View JSON | Print