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Sudaryono Cancels Rp535 Billion LED Procurement After Taking Over BGN

Nurul Darari by Nurul Darari
September 4, 2026
in Business, Indonesia
Reading Time: 2 mins read
Photo: Instagram Sudaryono

Photo: Instagram Sudaryono

Jakarta, ThedailyID — The National Nutrition Agency (BGN) has canceled an LED procurement worth around Rp535 billion after Sudaryono took over as the agency’s chief.

Sudaryono said the procurement did not appear in BGN’s budget allocation and was not necessary. He said BGN now wants every procurement decision to focus on actual needs and benefits.

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“I canceled it after I became head of the agency because there was no budget allocation for it,” Sudaryono said at the Indonesian Parliament building, Friday (04/09/2026).

“We do not procure something simply because we want it. We procure it because it is necessary and needed. In this case, the LED equipment was not needed,” he added.

Sudaryono stressed that BGN must use state funds responsibly.

“This budget is the people’s money. As the head of the agency, I cannot use it as I please as if it were my grandmother’s money. Every rupiah is public money, and we must account for it and maximize its benefits,” Sudaryono said.

BGN has also reviewed its budget for the Free Nutritious Meals (MBG) program. Its 2026 budget allocation initially stood at Rp268 trillion before efficiency measures reduced it to around Rp229 trillion.

“We have made efficiency savings of around Rp39 trillion,” Sudaryono said.

The agency updated its beneficiary data as part of the efficiency drive. The number of targeted recipients fell from 63 million to around 56 million after BGN identified duplicate records and people who had not received the program.

BGN also withdrew virtual accounts from 414 kitchens listed in its system but not yet operating. The move returned around Rp311 billion to the state.

Sudaryono said BGN will continue reviewing its spending and could push the 2027 MBG budget below Rp200 trillion.

“We will try to be as efficient as possible. We will discuss it again with the Finance Minister and internally, and calculate it again,” he said.

“We will ensure that under our leadership, there will be no unnecessary procurement,” Sudaryono said.

Tags: BGNBudget EfficiencyGovernment SpendingIndonesiaLED ProcurementMakan Bergizi GratisMBGSudaryonoThedailyID
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