Economist outlines conditions for village cooperatives to become reliable suppliers for free meals programme

Jakarta (ANTARA) - Economist Yusuf Rendy Manilet from the Center of Reform on Economics (CORE) Indonesia has stated that the Merah Putih Village Cooperatives (Kopdes) must meet several conditions before taking on the role of supplier for the Free Nutritious Meals (MBG) programme to ensure its sustainable implementation. Yusuf told ANTARA in Jakarta on Friday that Kopdes Merah Putih can act as an off-taker and supplier of raw materials for MBG, supported by Presidential Regulation Number 115 of 2025, which mandates that the programme prioritise local products and involve cooperatives in the supply chain. However, he noted that institutional readiness alone is insufficient. “Before Kopdes are assigned as the main suppliers, several prerequisites must be met,” he said. He explained that the first requirement is that assignments must be based on a proven business track record, not merely the cooperative’s legal entity status. The second condition is that the capacity for aggregating agricultural products, storage, and distribution must be genuinely functional on the ground. “The cooperative must be able to collect community produce, maintain stock availability, and ensure timely distribution,” he stated. The third requirement is compliance with food safety standards and product quality consistency, given that the MBG programme targets schoolchildren. He assessed that the quality of supplied food must not vary, as this could affect the programme’s success. The fourth condition is strengthening the governance and human resources of the cooperatives. According to him, many cooperatives still face limitations in managerial and operational competence, requiring assistance and capacity building. “With limited working capital, payment delays from the Nutrition Fulfilment Service Units (SPPG) can immediately disrupt the cooperative’s liquidity and potentially halt its business activities,” Yusuf said. He believes the government must thoroughly ensure the business readiness of cooperatives before assigning them as MBG suppliers. The government aims for Kopdes Merah Putih to act as an off-taker for agricultural, fishery, livestock, and other village commodities, which will be channelled to meet the needs of the MBG programme. The involvement of Kopdes Merah Putih is expected to shorten the distribution chain, strengthen the bargaining position of village-level producers, and increase the economic impact of the programme for local communities.