Indonesia's Free Meal Program Marred with Corruption Claims: What to Know

TEMPO.CO, Jakarta - Indonesia Corruption Watch (ICW) has found potential Rp49.5 billion in state losses in the National Nutrition Agency's (BGN) halal certification service procurement project. The anti-corruption group has reported its findings to the Corruption Eradication Commission (KPK) for further investigations.

The halal certification project had a total budget of Rp141.79 billion across 4,000 certificates in 2025, according to the head of the legal and investigation division of ICW, Wana Alamsyah. 

"We are suspecting a corruption act as outlined in Articles 2 and 3 of Law Number 20 of 2001," said Wana in a written statement on Thursday, May 7, 2026.

Wana mentioned at least four legal issues alleged in the procurement project. These include lack of legal basis to justify the procurement, splitting the contracts to avoid tendering, allegation of fronting, and price markup.

According to the ICW investigation chief, the procurement of halal certification by BGN lacked legal basis, since existing regulations—Presidential Regulation No. 115 of 2025 and BGN Chief Decision No. 401.1 of 2025—delegate halal certification to nutrition fulfillment service units (SPPGs).

Further, ICW found that BGN has is attempting to divide the procurement of halal certification services into four stages. This is to evade tendering, selection, and to escape responsibility. "Based on the principle of efficiency and propriety, these packages should have been combined into one," he said.

ICW also found fronting suspicions, as BGN's halal certification project was implemented by PT BKI. The company, however, is not registered as a halal certification agency (LPH) authorized to oversee halal certification. "These findings indicate the alleged transfer of work, either entirely or partially, to other parties with LPH status," said Wana.

ICW also suspected price markup in the BGN halal certification procurement project. The Chief of the Halal Product Assurance Organizer (BPJPH)'s Decision Number 22 of 2024 outlined a total cost of Rp23 million for a medium enterprise category, which includes halal certification, halal supervisor training, and halal supervisor certification.

If calculated with the number of projects held by BGN, namely 4,000 halal certificates, the total cost required would only amount to Rp92.2 billion. Meanwhile, the contract value of the four project packages organized by BGN reached Rp141.7 billion. "The difference between the contract value and the estimated cost indicates an alleged price markup of at least Rp49.5 billion,' said Wana.

M. Raihan Muzzaki contributed to the writing of this article

Read: ICW Detects Alleged Markup in Halal Certification Fees at BGN 

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