New Budget Pattern: BGN Chief States Each Nutrition Service Unit Will Receive Rp 500 Million Daily

The head of the National Nutrition Agency (BGN), Dadan Hindayana, announced that the agency has implemented a new pattern for managing state budget allocations through a direct fund distribution mechanism that reaches grassroots level without passing through regional governments (Pemda).

Consequently, 93 per cent of the total BGN budget will be distributed directly to Nutrition Service Units (SPPG) throughout Indonesia. Of the total budget of Rp 268 trillion, approximately Rp 240 trillion will circulate directly in regions from Sabang to Merauke.

Dadan explained that these funds will target SPPGs across remote areas of Indonesia without going through regional government intermediaries.

“BGN is introducing a new pattern, where 93 per cent of BGN funds are distributed directly to SPPGs. So, if there is Rp 268 trillion in funds, roughly Rp 240 trillion in money circulates from Sabang to Merauke,” Dadan stated on Friday, 27 February 2026.

“And every day each SPPG receives Rp 500 million. I believe this is a new model where not a single rupiah of central funds is channelled through regional governments,” he added.

Dadan noted that funds circulating from Sabang to Merauke have reached approximately Rp 36 trillion to date. He emphasised that this fund circulation has become an extraordinary driver of the national economy, as it promotes genuine equitable distribution across all Indonesian regions.

Dadan stated that the number of SPPGs determines the amount of funds circulating in a given region. Therefore, the more SPPGs operating in an area, the greater the funds circulating in that region.

He assured that this policy will also have a direct impact on the local production sector. In the BGN programme, local products are guaranteed absorption by the agency, thereby creating market certainty for farmers and regional business operators.

“It has never happened in any era that local production was guaranteed absorption by the state as it is now. It is no wonder there are carrot farmers in East Nusa Tenggara who are pleased because the price of their carrots has increased threefold,” Dadan said.

Furthermore, Dadan continued, this increased absorption of production has also impacted improvements in the Farmers’ Terms of Trade (NTP). The average NTP currently stands at 125, an increase from the previous level of approximately 102.