Prosecutors Uncover Foundation Network in Indonesia’s MBG Scandal
- Prosecutors have named three former BGN officials as suspects in a corruption case linked to Indonesia’s Free Nutritious Meals (MBG) program.
- The investigation centers on alleged misuse of affiliated foundations and inflated procurement projects worth trillions of rupiah.
- Authorities are continuing to calculate state losses as the probe expands.
Jakarta — Indonesia’s Attorney General’s Office has named former National Nutrition Agency (BGN) head Dadan Hindayana and his two former deputies, Lodewijk Pusung and Sonny Sanjaya, as suspects in an alleged corruption case involving the government’s Free Nutritious Meals (MBG) program.
Prosecutors allege that the three officials enriched themselves through foundations affiliated with Nutrition Fulfillment Service Units (SPPG), which operate food production kitchens and act as suppliers for the nationwide program.
Director of Investigations at the Attorney General’s Office for Special Crimes, Syarief Sulaeman Nahdi, said investigators have identified two primary schemes. In addition to receiving funds through SPPG-affiliated foundations, the suspects are also accused of inflating budgets in the procurement of goods and services within the agency.
According to Syarief, several foundations approved as SPPG partners were linked to the suspects. Despite failing to meet required criteria, these entities were granted verification and approval to participate in the program.
The MBG initiative is one of the government’s flagship programs. Its budget reached Rp85.27 trillion (around $5.2 billion) in 2025 and was significantly increased to Rp268 trillion in 2026.
BGN holds the authority to verify and approve the establishment of SPPG units—production kitchens responsible for supplying nutritious meals to schools across the country.
“In principle, the MBG program should be managed by foundations at the school level. However, in practice, the foundations selected as SPPG partners were used as vehicles for criminal activity and were affiliated with BGN officials or employees,” Syarief said on Wednesday. “The suspects were aware that these foundations did not meet the required standards.”
Investigators also found that the suspects either owned or were connected to foundations involved in setting up and managing SPPG kitchens supplying the MBG program.
“These SPPG units were appointed through manipulated verification processes within the BGN partner portal, facilitated by the suspects,” Syarief said. “The affiliated foundations received incentives amounting to billions of rupiah daily and trillions annually.”
Authorities are still calculating the total financial gains obtained by each suspect. However, investigators believe the scheme caused significant state losses while enriching those involved.
Separately, prosecutors are examining alleged budget markups in procurement projects under BGN. These include the purchase of 21,801 electric vehicles valued at approximately Rp1 trillion.
Investigators are also probing suspected price inflation in the procurement of 32,000 pairs of shoes and 54,000 units of 75-inch televisions. The total state losses from these activities are still being assessed.
The three suspects have been charged under Articles 603 and 604 in conjunction with Article 20 (a) or (c) of the Criminal Code, as well as Article 18 of Law No. 31/1999, as amended by Law No. 20/2001 on the Eradication of Corruption.
Indonesianpost.com | Republika
