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View all search resultsBGN head reported to KPK over alleged halal certification mark up
ICW estimated the halal certification program should have cost around Rp 92.2 billion (US$5.27 million) to process 4,000 halal certificates. However, the allocated budget stood at Rp 141 billion.
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Dadan Hindayana, the head of the National Nutrition Agency (BGN), reacts as ministers, agency representatives, and stakeholders attend a coordination meeting on the implementation of the Free Nutritious Meal Program (MBG) at the Coordinating Ministry for Food in Jakarta on March 3, 2025. (AFP/Yasuyoshi Chiba)
T
he National Nutrition Agency (BGN) head Dadan Hindayana has been reported to the Corruption Eradication Commission (KPK) over allegations of inflated halal certification procurement tied to President Prabowo Subianto’s flagship free meals program.
The complaint was lodged last week by antigraft watchdog Indonesia Corruption Watch (ICW), which alleged irregularities in the 2025 halal certification program, citing possible budget inflation, questionable procurement structuring and the involvement of an ineligible state-owned enterprise.
The group estimated the certification program should have cost around Rp 92.2 billion (US$5.27 million) to process 4,000 halal certificates, in line with the maximum rate of Rp 23 million per certificate stipulated in a 2024 regulation.
However, the allocated budget stood at Rp 141 billion, leaving discrepancy or around Rp 49.5 billion that ICW said warranted scrutiny.
“The potential state losses we identified amount to Rp 49.5 billion, arising from problematic governance in the procurement of halal certification services,” said Wana Alamsyah, head of ICW’s legal and investigation division, at KPK headquarters in Jakarta last Thursday.
Read also: Price gaps, budget inconsistencies flagged in free meals program
ICW further questioned the legal basis of the procurement process, noting that halal certification was handled by the BGN even though the Presidential Regulation on Nutrition Fulfillment Service Units (SPPG) assigns responsibility for halal certification directly to the SPPG units, or the kitchens.
