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TEMPO.CO, Jakarta - The Head of the National Nutrition Body (BGN), Dadan Hindayana, has responded to a report filed by Indonesia Corruption Watch (ICW) with the Corruption Eradication Commission regarding alleged mark-ups in the 2025 procurement of halal certification services for the free nutritious meal (MBG) kitchens or SPPG.
According to ICW's findings, potential state losses in the procurement process amount to Rp49.5 billion.
Dadan Hindayana stated that he respects the anti-graft organization's initiative. "My thanks to ICW for paying such special attention to halal certification," Dadan said on Monday, May 11, 2026, as reported by detikcom. When contacted on Tuesday, May 12, 2026, Dadan authorized Tempo to quote his statement.
Dadan explained that the halal certification activities were part of the 2025 budget arrears that are slated for settlement in 2026. He noted that all payment processes remain subject to the supervision and evaluation mechanisms of the relevant agencies.
"Before any payment is made, it will certainly be reviewed by the Finance and Development Supervisory Agency (BPKP) and the Government Internal Supervisory Apparatus (APIP). Therefore, everything will be adjusted to prevailing market prices," Dadan said.
Indonesia Corruption Watch (ICW) previously reported the Head of BGN, Dadan Hindayana, and the service provider, which is a State-Owned Enterprise. ICW's Legal and Investigation Division Head, Wana Alamsyah, revealed that BGN conducted the procurement of halal certification services divided into four stages. The total budget for the project amounted to Rp141.79 billion for 4,000 certifications.
However, ICW identified several irregularities during the process. Among them are Presidential Regulation Number 115 of 2025 concerning the Governance of Halal Product Assurance Institutions and BGN Head's Decree Number 401.1 of 2025, which stipulate that the responsibility for fulfilling halal certification lies with the Nutrition Fulfillment Service Unit (SPPG).
Therefore, Wana argued that the party responsible for the certification should be the SPPG rather than the BGN. Furthermore, he noted that the SPPG has already received an incentive of Rp6 million per day.
ICW further suspects that BGN attempted to split the procurement into four stages to bypass mandatory tendering and selection processes and to evade accountability.
ICW conducted its analysis by calculating certification costs based on the BPJPH Head's Decree Number 22 of 2024 regarding service tariffs. The total cost for a medium-sized business, covering certification, supervisor training, and supervisor certification, amounts to Rp23 million.
This figure represents the upper-limit tariff or the maximum fee chargeable by a Halal Inspection Agency. Using that maximum rate, the total cost for 4,000 certificates should have been Rp92.2 billion, not Rp141.79 billion. The discrepancy of approximately Rp49.5 billion is what drew ICW's scrutiny.
Moreover, Wana mentioned that the winner of the procurement is a company not listed as a registered Halal Inspection Agency authorized to provide certification assistance. Therefore, ICW suspects that BGN "borrowed a flag" to facilitate the procurement. "This finding indicates an alleged transfer of work, either wholly or in part, to other parties who hold LPH status," Wana said on Thursday, May 7, 2026.
Based on these findings, ICW contends that there are grounds for corruption allegations under Articles 2 and 3 of Law Number 31 of 1999, as amended by Law Number 20 of 2001. The organization has urged the Corruption Eradication Commission to launch an investigation into the 2025 halal certification procurement carried out by BGN.
M. Raihan Muzzaki contributed to this report.
Read: Indonesia's Free Meal Program Marred with Corruption Claims: What to Know
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