BGN Absorbed Only 66 Pct of 2025 Free Meal Budget

BGN Absorbed Only 66 Pct of 2025 Free Meal Budget

Tempatdonasi.com – Deputy Head of the National Nutrition Agency (BGN), Agustina Arumsari, provided detailed insights into the budget realization for the free nutritious meals (MBG) program during the 2025 fiscal year. The agency, which operated under the leadership of Dadan Hindayana at the time, received an allocation of Rp71 trillion for this flagship initiative. Despite this substantial investment, the agency’s spending fell short of expectations. As Arumsari revealed during a parliamentary hearing, the BGN Absorbed Only 66 Pct of the allocated funds for program implementation and operations.

Reasons Behind Low Budget Absorption

The deputy head explained that the relatively low absorption rate was connected to a significant budget expansion request. During Dadan Hindayana’s tenure as agency head, he submitted a proposal to increase the budget by Rp14 trillion. Arumsari expressed surprise at this decision, noting that the agency had not fully utilized its existing allocation before seeking additional resources.

“In the end, it went unspent, leaving the final realization figure at just 66 percent,” Arumsari stated during her testimony at the Parliament complex in Jakarta on Friday, July 17, 2026.

Her comments highlighted a critical concern about financial management within the agency. The fact that the BGN Absorbed Only 66 Pct of its budget while simultaneously requesting billions in additional funding raised questions about planning efficiency and resource allocation strategies.

Outstanding Payments and Verification Process

Beyond the budget absorption issue, the BGN’s 2025 financial report revealed substantial unpaid obligations to third parties. These outstanding payments totaled Rp1.6 trillion, with the majority stemming from capital expenditure activities. Specifically, the construction of kitchens for the free nutritious meals project accounted for Rp1.04 trillion of these arrears.

Arumsari clarified that these unpaid bills would be settled through the carry-over mechanism using the 2026 Budget Implementation List. However, she emphasized that the state treasurer requires several provisions for such outstanding payments to undergo prior review. This verification process is currently being managed by the agency’s internal inspectorate in coordination with the Financial and Development Supervisory Agency.

The deputy head acknowledged that this review process represents the primary reason why BGN’s 2025 fiscal year bills remain unsettled. “We are in the process of revising the budget with the Directorate General of Budget,” she explained, adding that the agency is working to resolve these matters promptly. “We apologize to all third parties involved,” she concluded, recognizing the impact of the delays on suppliers and contractors.