Indonesian Political, Business & Finance News

Stranas PK: Rp12 trillion MBG funds idle in foundation's virtual account

| Source: TEMPO_ID Translated from Indonesian | Politics

National Strategy Team for Corruption Prevention (Stranas PK) has identified several corruption risks and serious implementation hurdles in President Prabowo Subianto’s priority programmes, particularly the Free Nutritious Meals (MBG) programme and the village-level Red-White Cooperative (KDKMP) scheme. The Stranas PK strategic team is a special unit tasked with drafting policy directions on corruption prevention. It was formed by Presidential Regulation. The Stranas PK team presently comprises the Corruption Eradication Commission (KPK), the Office of the Presidential Staff, the Ministry of National Development Planning or Bappenas, the Ministry of Administrative and Bureaucratic Reform (PAN-RB) and the Ministry of Home Affairs.

Coordinator Hariy Stranas PK, Sari Anggraeni, said one of the most striking findings is the existence of a jumbo fund left in third-party accounts, namely the foundation that manages nutrition service units (SPPG) or the MBG kitchen. The money is MBG budget that has not been absorbed.

‘There is around Rp12 trillion of funds sitting idle in the foundation’s virtual account. So the realisation of MBG is about 60.57 percent, leaving about Rp12 trillion unabsorbed,’ Sari said during a public discussion with Indonesia Corruption Watch (ICW) at Resonansi Space, Jakarta, Thursday, 21 May 2026.

According to Sari, the unabsorbed funds should be returned to the state treasury via the Ministry of Finance. But this did not occur because the programme mechanics operate very quickly. Therefore, Sari believes the speed of MBG implementation has not been accompanied by adequate oversight, making it vulnerable to corruption.

Additionally, Sari explained that the KPK’s review of the Stranas PK found conflicts of interest in the selection of implementers on the ground. The choice of SPPG is described as potentially non-accountable.

Sari collected data using a social network analysis method. The results showed that a large portion of SPPG ownership is dominated by certain parties. ‘Even in several KPK study findings, there is evidence of transactional activity towards the MBG points,’ she said.

Sari emphasised that Stranas PK actually regards this MBG project as a good programme with the potential to boost the local economy. However, a programme run in a reckless manner without thorough planning makes it prone to misappropriation.

On the ground, MBG’s presence has not yet been able to support the local economy in line with the President’s aims. Market players in this programme are still dominated by large players from outside the region. ‘Local suppliers to MBG account for only about 1.54 per cent of MBG’s needs. What does this mean? It means the suppliers are not from the area,’ Sari said.

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