Azin AsroThe Indonesian Attorney General’s Office, known as Kejagung, has officially uncovered a sprawling corruption scandal involving the former Head of the National Nutrition Agency (BGN), Dadan Hindayana, and several high-ranking associates. The investigation centers on allegations of significant budget markups and the procurement of unnecessary assets under the umbrella of the Free Nutritious Meal (MBG) program, a flagship initiative designed to combat stunting and improve public health. According to the Junior Attorney General for Special Crimes (Jampidsus), the fraudulent activities primarily involved the acquisition of over 21,000 electric motorcycles and tens of thousands of pairs of shoes, with the total value of the suspicious contracts reaching trillions of rupiah.
The Director of Investigation at Jampidsus, Syarief Sulaeman Nahdi, detailed the findings during a press conference at the Attorney General’s Office on Wednesday, June 3, 2026. He revealed that the procurement process was plagued by irregularities from its inception, specifically citing the inclusion of items that held no functional value for the operational success of the feeding program. The most prominent among these was the purchase of 21,801 electric motorcycles intended for the Service and Production Centers (SPPG). Syarief noted that the total budget allocated for these vehicles was approximately Rp 1 trillion, a figure that investigators believe was intentionally inflated.
Systematic Inflation and Unnecessary Procurement
The core of the investigation lies in the "Kerangka Acuan Kerja" (KAK), or the Terms of Reference, used for the procurement of goods and services at the National Nutrition Agency. Investigators found that the KAK was not drafted based on the actual field requirements or the logistical needs of distributing meals to millions of children across the archipelago. Instead, the document was allegedly manipulated to facilitate the purchase of luxury or high-cost items that provided opportunities for price gouging.
"In the preparation of the KAK for the procurement of goods and services at BGN, the specifications were not aligned with real needs on the ground," Syarief Sulaeman Nahdi explained. "There were clear instances of price markups that resulted in significant state losses. Furthermore, these acquisitions did not support the core operational execution of the MBG program."
In addition to the electric motorcycles, the investigation highlighted a second major procurement anomaly involving 32,000 pairs of shoes. Despite the relatively small number of units compared to the motorcycle fleet, the budget for these shoes was also set at a staggering Rp 1 trillion. Simple mathematical analysis suggests that each pair of shoes was valued at approximately Rp 31.25 million, a price point that far exceeds the cost of standard professional or tactical footwear, signaling a massive discrepancy that investigators are now tracing through the agency’s financial records.
The Electric Motorcycle Controversy: White Labeling and Market Discrepancies
The procurement of electric motorcycles for the BGN first drew public scrutiny when images of the vehicles, branded under the EMMO name, began circulating. Industry experts and observers quickly pointed out that the designs—which included both scooter-style and trail-style models—bore a striking resemblance to "white label" products manufactured in China. White labeling is a practice where a manufacturer produces a generic product that other companies can then rebrand and sell as their own.
One specific model, the EMMO JVX GT electric trail bike, was identified as being nearly identical to the Kollter ES1-X PRO, a product available on international wholesale platforms like Alibaba. Data from these marketplaces shows that the Kollter ES1-X PRO is typically priced around Rp 10 million per unit for single purchases, with discounts bringing the price down to roughly Rp 8 million for bulk orders. In contrast, the budget allocated by BGN suggested a much higher per-unit cost, raising questions about where the excess funds were diverted.
Similarly, the EMMO JVH Max electric scooter was found to be a carbon copy of the Okla electric scooter produced by Taizhou Okla Automotive in Zhejiang, China. The similarities extend across the entire frame, including the headlamps, windshields, fenders, and even the specific detailing of the fairings and turn signals. While the Okla version retails for approximately US$ 2,185 (around Rp 37 million), the EMMO JVH Max was marketed in Indonesia for approximately Rp 48 million. The investigation aims to determine why the government opted for these specific rebadged models at premium prices when more affordable or locally developed alternatives were available.
Defense from the National Nutrition Agency
Before his departure from the agency, Dadan Hindayana had defended the procurement choices in various interviews. Speaking with media outlets in April, he acknowledged that the motorcycles were indeed available in other international markets under different brand names. He argued that the use of such platforms was a standard industry practice and that the vehicles were of high quality, citing their presence in European and Canadian markets.
"In Europe, this motor exists under other brands; it is the same type but with a different name. In Europe, it is known as Tinbot. It is the same product used in Europe and Canada because they are of the same type," Dadan stated during his tenure as Head of BGN.
However, the Attorney General’s Office contends that the issue is not merely the origin of the technology, but the lack of transparency in the pricing and the fundamental question of why a nutrition agency required a fleet of over 21,000 electric motorcycles costing Rp 1 trillion to fulfill its mandate of delivering food. Investigators are looking into whether the "white label" nature of the products was used as a screen to hide the true cost of production and facilitate the siphoning of state funds.
Industry Perspective on Rebranding Practices
The practice of rebranding Chinese electric vehicles is well-documented in Indonesia. Hendro Sutono, a prominent advocate from the Indonesian Electric Motorcycle/Bicycle Community (Kosmik), noted that many brands currently operating in the domestic market rely on "white label" imports.
"It is a common practice," Hendro explained. "It is actually easier to list the brands that are genuinely designed and engineered locally in Indonesia, such as GESITS, MAKA, or QUEST. Many others are results of rebranding ‘white label’ products from China. Over time, some of these companies begin localizing production by manufacturing frames, bodies, or wheels in Indonesia to meet local content requirements (TKDN), but the base designs often remain foreign."
While rebranding is legal in the private sector, the use of such products in government procurement becomes a legal issue when the price paid by the state is significantly higher than the market value of the original product, or when the procurement process bypasses competitive bidding to favor specific importers of these rebranded goods.
Timeline of the MBG Program and Investigation
The Free Nutritious Meal (MBG) program was conceptualized as a cornerstone of national social policy, aimed at providing daily meals to students and pregnant women to ensure long-term food security and cognitive development.
- Late 2024 – Early 2025: The National Nutrition Agency (BGN) is established, and Dadan Hindayana is appointed to lead the organization. The MBG program receives a massive budgetary allocation.
- Late 2025: Reports emerge regarding the large-scale procurement of electric motorcycles and specialized footwear for "field officers" and SPPG centers.
- April 2026: Public controversy peaks as automotive enthusiasts identify the BGN motorcycles as rebranded Chinese imports with significant price markups. Dadan Hindayana defends the procurement in the media.
- May 2026: The Attorney General’s Office initiates a preliminary investigation following reports of budgetary mismanagement and lack of "real-world" necessity for the procured items.
- June 3, 2026: Kejagung officially announces the findings of markups totaling trillions of rupiah and identifies Dadan Hindayana and others as central figures in the investigation.
Broader Implications for Government Transparency
The BGN scandal serves as a stark reminder of the challenges facing Indonesia’s massive social welfare programs. When billions of dollars are allocated to a single agency for rapid implementation, the risk of "budget absorption" tactics—where officials spend money quickly on unnecessary items to justify future budgets—increases significantly.
Legal analysts suggest that if the allegations are proven in court, it could lead to a massive overhaul of how new government agencies are audited. The fact that Rp 1 trillion was spent on shoes alone for an agency focused on nutrition has become a symbol of administrative absurdity in the eyes of the public. Furthermore, the scandal threatens to tarnish the reputation of the electric vehicle (EV) transition in Indonesia. While the government is pushing for EV adoption to reduce carbon emissions, using the green transition as a cover for inflated procurement contracts may diminish public trust in future environmental initiatives.
The Attorney General’s Office has signaled that the investigation is far from over. "We are currently tracing the flow of funds to see if these markups were used for personal enrichment or to fund other unauthorized activities," Syarief Sulaeman Nahdi concluded. "The state’s priority is to recover these losses and ensure that the Free Nutritious Meal program can continue to serve the people without being drained by corruption."
As the case moves toward the trial phase, the focus will remain on the accountability of leadership within newly formed agencies and the necessity of rigorous oversight in the procurement of "white label" technologies. For now, the 21,801 electric motorcycles stand as a silent testament to a program that, while noble in its nutritional goals, fell victim to the very systemic corruption it was meant to outrun.
