TEMPO.CO, Jakarta - Indonesia Corruption Watch (ICW) found indications of price inflation in the procurement of halal certification services at the National Nutrition Agency (BGN). According to ICW, these indications have the potential to harm the state finances by Rp49.5 billion.
The Head of ICW's Legal and Investigation Division, Wana Alamsyah, stated that the procurement of halal certification services at BGN is not legally justified. Presidential Regulation Number 115 of 2025 concerning the Governance of Free Nutritious Food (MBG) and BGN Head Decision Number 401.1 of 2025 regarding Technical Guidelines for the Governance of MBG state that the obligation to fulfill halal certification is the responsibility of the Nutrition Fulfillment Service Unit (SPPG).
"Thus, the entity that should fulfill halal certification is the SPPG, not BGN, especially since the SPPG has received incentives amounting to Rp6 million per day," Wana said in a written statement on Thursday, May 7, 2026.
Furthermore, ICW suspects that the National Nutrition Body is attempting to divide the procurement of halal certification services into four stages. This is to evade tendering, selection, and to escape responsibility.
BGN has allocated a Rp141.79 billion budget for 4,000 halal certifications. However, based on ICW's calculations, there is a difference of around Rp49.5 billion.
The ICW was analyzed by calculating the halal certification costs, as referenced in the Head of the Halal Product Assurance Organizing Agency (BPJPH) Decree Number 22 of 2024 on Determining Service Rates for the BPJPH Public Service Agency. The total cost for a medium-sized enterprise in the halal certification category, including halal supervisor training and halal supervisor certification, is Rp23 million.
This figure represents the maximum tariff, or cost, that the Halal Inspection Agency can charge. If this tariff is used, the expenses required for processing 4,000 halal certificates would be Rp92.2 billion, not Rp141.79 billion.
On the other hand, according to Wana, the winner of this certification procurement is a company not registered as a Halal Inspection Agency (LPH) eligible to conduct halal certification assistance. Therefore, ICW suspects that BGN is "borrowing the flag" to carry out this procurement. "This finding indicates the alleged transfer of work, either entirely or partially, to other parties with LPH status," he said.
These practices can be risky if they are not carried out according to clear contractual agreements. Additionally, Wana stated that this method also has the potential to raise accountability issues in contract implementation.
Based on these allegations, ICW believes there has been an alleged corruption offense under Articles 2 and 3 of Law Number 31 of 1999 juncto Law Number 20 of 2021. ICW has reported these findings to the Corruption Eradication Commission (KPK).
"We urge the Corruption Eradication Commission (KPK) to immediately investigate the procurement of halal certification services conducted by BGN in 2025," he said.
Read: BGN: Borax in Free Nutritious Meals Violated Guidelines
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