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ICW Suspects Corruption in BGN's Halal Certification Project, How Much is the Value?

Akbar Ridwan 11/05/2026 14:28 WIB

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ICW reported the alleged corruption in the procurement of halal certification services at BGN to the KPK on Thursday (7/5/2026).

Estimated Value of Corruption in the Procurement of Halal Certification Services at the National Nutrition Agency according to Indonesia Corruption Watch (2025)

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ICW Suspects Corruption in BGN's Halal Certification Project, How Much is the Value?

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Estimated Value of Corruption in the Procurement of Halal Certification Services at the National Nutrition Agency according to Indonesia Corruption Watch (2025)

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Indonesia Corruption Watch (ICW) reported alleged corruption in halal certification procurement services at the National Nutrition Agency (BGN) to the Corruption Eradication Commission (KPK) on Thursday (May 7, 2026).

ICW explained that in 2025, BGN carried out procurement for halal certification services, which was split into four phases covering 4,000 certifications with a total contract value of Rp141.7 billion.

ICW suspects several issues in the procurement process, one of them being alleged price inflation.

In its statement, ICW said the cost for one medium-sized company—including halal certification, halal supervisor training, and halal supervisor certification—amounted to Rp23.06 million.

The figure refers to Decree No. 22 of 2024 issued by the Head of the Halal Product Assurance Organizing Agency (BPJPH) on the determination of service tariffs for BPJPH’s Public Service Agency.

“This figure represents the upper tariff limit or the maximum fee that may be charged by a Halal Inspection Agency (LPH),” ICW said in its press release.

Using that tariff for 4,000 halal certifications, ICW estimated the total cost at Rp92.2 billion. Meanwhile, BGN’s procurement contract reached Rp141.7 billion.

“The difference between the contract value and the estimated cost indicates alleged price markups of at least Rp49.5 billion,” ICW stated.

Another issue raised by ICW is that the halal certification procurement at BGN allegedly lacked a legal basis.

According to BGN Head Decree No. 401.1 of 2025, halal certification is the responsibility of the Nutritional Fulfillment Service Unit (SPPG), not BGN itself.

ICW also suspects that splitting the procurement into four packages was intended to avoid a tender process, selection procedures, and accountability.

“If the packages had been merged, the budget ceiling exceeding Rp100 billion would have placed direct responsibility for selecting the provider on the Head of BGN as the budget user (PA),” ICW explained.

Lastly, ICW alleged that PT BKI—the winner of the procurement—borrowed another party’s “flag” to execute the halal certification project.

Based on ICW’s findings in the BPJPH system, PT BKI is not listed as an LPH authorized to conduct halal certification assistance.

“This finding indicates alleged subcontracting or transfer of work, either wholly or partially, to another party that holds LPH status,” ICW said.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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ICW Suspects Corruption in BGN's Halal Certification Project, How Much is the Value?

ICW Suspects Corruption in BGN's Halal Certification Project, How Much is the Value?

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Related Data

The realization of the K/L expenditure reached Rp281 billion in March 2026, primarily for MBG.

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KPK Confiscated Assets Auction Value Surges by 154% in 2025

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ICW Suspects Corruption in BGN's Halal Certification Project, How Much is the Value?

ICW Suspects Corruption in BGN's Halal Certification Project, How Much is the Value?

Tags

Related Data

The realization of the K/L expenditure reached Rp281 billion in March 2026, primarily for MBG.

Budget and Spending for Free Nutritious Meals in Indonesia in the Q1 2026

61.62 Million People Receive Free Nutritious Meals as of March 2026, Majority on Java Island

TikTok Sentiment Trend on MBG Budget April-May 2026

KPK Confiscated Assets Auction Value Surges by 154% in 2025

BGN Just Announced 8.6% of Procurement Plans by April 2026

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