Kediri. A group claiming to be involved in President Prabowo Subianto’s flagship Free Nutritious Meals (MBG) program for children and pregnant mothers has defrauded dozens of catering business owners in Kediri, East Java. The victims, enticed by promises of lucrative contracts, were tricked into paying “security deposits” amounting to a total loss of Rp 72 million ($4,450).

The fraud was orchestrated by a community group named Manunggal Cipto Roso Kuliner, which falsely claimed it was preparing a tender for the MBG program. However, the group’s registered address in Gogorante Village, Ngasem District, turned out to be an empty plot of land.

Nining Murtriningsih, one of the victims, said she initially trusted the program after being promised a five-year contract. She even encouraged other struggling catering business owners affected by the COVID-19 pandemic to join.

“At first, there was no mention of a security deposit, but later, we were asked to pay Rp 750,000 per 1,000 meal boxes, which was then increased to Rp 1 million,” Nining said on Friday.

A total of 43 catering business owners have demanded the return of their deposits. One of the group’s representatives, Margaretha, through her husband Rudy, admitted to collecting the deposits and claimed they would be refunded once the program starts in January 2025. Rudy also claimed to be a victim, stating he sold his car and motorcycle to partially reimburse Rp 43 million to the victims.

Local authorities have distanced themselves from the fraudulent scheme. Kediri District Military Commander Lt. Col. Ragil Jaka Utama said that his institution was not involved in the program. “This is not true. Do not easily trust parties claiming to represent government institutions without proper verification,” Ragil said.

Meanwhile, the National Nutrition Agency (Badan Gizi Nasional) warned the public about fraudulent schemes exploiting the MBG program’s name. The agency clarified that it does not charge fees or offer paid collaborations related to the initiative.

“We urge the public to remain vigilant. The National Nutrition Agency provides all its services free of charge,” agency spokesperson Lalu Muhammad Iwan Mahardan said in a statement. He also encouraged people to report suspicious activities involving the agency’s name.

The MBG program, aimed at improving child nutrition and education, will officially begin distribution on Jan. 6, 2025. It is set to start in 932 locations before expanding to 2,000 by April and 5,000 by mid-2025. The program’s first year has been allocated a budget of Rp 71 trillion, targeting 15 million beneficiaries, with plans to reach 80 million recipients by 2029.

Each meal is estimated to cost Rp 10,000, sourced from local farmers and livestock producers. The initiative is projected to require a budget of Rp 400 trillion over the next several years.