National Nutrition Agency Denies Claims That Free Nutritious Meal Partners Earn Rp 1.8 Billion in Profit
The National Nutrition Agency (BGN) has moved to correct a circulating video featuring the head of the Student Executive Board of Gadjah Mada University, which claimed that partners of nutrition service fulfilment units (SPPG) earn net profits of up to Rp 1.8 billion per year. The video linked the claims to alleged raw material mark-ups and suggestions that kitchens are owned by parties associated with certain political organisations.
BGN Deputy Head for Operations Sony Sonjaya said the narrative constitutes disinformation that does not correspond with the technical facts and financing structure of the free nutritious meal programme (MBG). “The claim that partners earn Rp 1.8 billion in net profit per year is a fictitious assumption with no basis in business and investment reality,” Sony said in an official statement on Saturday, 21 February 2026.
He explained that the Rp 1.8 billion figure represents an estimate of maximum gross revenue, calculated from Rp 6 million per day multiplied by 313 operating days (excluding Sundays), totalling Rp 1.878 billion per year.
According to BGN, this figure is not net profit as it must still be reduced by various cost components, ranging from initial investment, operational activities, maintenance, asset depreciation, to business risks.
Sony further explained that to become an SPPG partner, prospective operators are required to build facilities in accordance with technical standards set out in Technical Guidelines 401.1 of 2026. The estimated initial investment that must come from personal funds ranges from Rp 2.5 billion to Rp 6 billion, depending on location and land prices.
Investment components include:
- Land of 500–800 square metres
- Industrial kitchen of approximately 400 square metres
- Three-phase electrical installation
- Water filtration system meeting drinking water standards
- Wastewater treatment installation (IPAL)
- Antibacterial granite or epoxy flooring
- 8–10 air conditioning units and 16 CCTV points
- Staff quarters and office space
- Industrial cooking equipment
- Volunteer workforce training
- SLHS and halal certification
BGN stated that this investment falls under the category of capital expenditure (capex). With such investment levels and gross revenue of approximately Rp 1.8 billion per year, the break-even point would rationally only be reached within 2 to 2.5 years. Contracts are valid for one year and may be extended or terminated based on compliance and hygiene audit results. The decision on extension rests entirely with BGN.
All building and equipment maintenance costs, including asset depreciation, are the responsibility of the partner. Should a standards violation occur or community rejection necessitate relocation, all dismantling and reinstallation costs are borne entirely by the partner.
Furthermore, in the event of an extraordinary incident such as food poisoning, the SPPG may be suspended or permanently closed, with investment loss risks borne by the operator.
BGN also refuted accusations that partners profit by reducing food portions. The agency affirmed there is a strict separation between the facility/building incentive (Rp 6 million per day) and the raw material food budget.
Sony said raw material funds do not enter partners’ personal accounts but are channelled through operational virtual accounts based on at-cost principles. Disbursements are made in accordance with actual purchase evidence and are closely monitored. “There is no food margin in the MBG programme. Partners only receive facility incentives, not profits from the sale of side dishes or food portions,” he said.