Indonesian Economist: Village Cooperatives Must Meet Four Conditions for Free Meal Program Supply Role

Village cooperatives (Kopdes Merah Putih) must meet several prerequisites before they can serve as suppliers for Indonesia's Free Nutritious Meal Program (MBG), according to economist Yusuf Rendy Manilet of CORE Indonesia. These conditions are crucial for the program's sustainable implementation.

Manilet explained that while regulations support cooperatives acting as off-takers and suppliers, leveraging local products, their institutional readiness alone is insufficient. He detailed four essential prerequisites. First, cooperatives must demonstrate a proven business track record, not just legal status, indicating adequate operational experience to ensure sustainable supply.

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Before Kopdes is assigned as the main supplier, there are several prerequisites that need to be met.

Second, their capacity for aggregating agricultural output, storage, and distribution must be functional. "Cooperatives must be able to collect community production, maintain stock availability, and ensure timely distribution," Manilet stated. Third, adherence to food safety standards and consistent product quality is vital, especially since the MBG targets schoolchildren. The quality of supplied food must remain constant to ensure the program's success.

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Cooperatives must be able to collect community production, maintain stock availability, and ensure timely distribution.

Fourth, Manilet emphasized the need for strengthening cooperative governance and human resources, as many still face managerial and operational competency limitations requiring capacity building. Beyond these four points, he highlighted the critical importance of working capital support. As off-takers, cooperatives must purchase harvests from farmers, store them, and await payment from the final buyer.

"With limited working capital, payment delays from the buyer can directly disrupt the cooperative's liquidity and potentially halt its business activities," Yusuf warned. He urged the government to ensure cooperatives are fully prepared before assigning them the supplier role for the MBG, which aims to shorten distribution chains and boost the economic impact for local communities.

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With limited working capital, payment delays from the buyer can directly disrupt the cooperative's liquidity and potentially halt its business activities.