Economist: Kopdes Merah Putih Needs to Run a Role as a Supplier of MBG

Illustration. (Photo: Dok. Antara)

JAKARTA - The economist of the Center of Reform on Economics (CORE) Indonesia, Yusuf Rendy Manilet, assessed that the Red and White Village/Neighborhood Cooperative (Kopdes) needs to meet a number of conditions before playing a role as a supplier of the Free Nutritious Meal (MBG) Program so that its implementation can run sustainably.

Yusuf said that the Red and White Kopdes could become an off-taker, as well as a supplier of MBG raw materials, supported by regulations through Presidential Regulation Number 115 of 2025 which mandates that the provision of food for the program prioritizes local products and involves cooperatives in the supply chain.

However, he said, institutional readiness alone was considered insufficient. "Before Kopdes was assigned as the main supplier, there were several prerequisites that needed to be met," he said, quoted by Antara, Saturday, June 13.

He explained that the first requirement was that the assignment must be given based on proven business track record, not just the legal status of the cooperative.

According to him, the cooperatives involved need to have adequate business experience and operational capabilities in order to be able to meet the needs of supply on an ongoing basis.

The second condition, the capacity of aggregation of agricultural production, storage, and distribution, must really work in the field.

"Cooperatives must be able to collect the community's production, maintain stock availability, and ensure that distribution is carried out on time," he said.

The third requirement is the fulfillment of food safety standards and consistency of product quality, considering the MBG Program targets school children.

He assessed that the quality of food supplies should not be different because it could affect the success of the program.

In addition, the fourth requirement is the strengthening of cooperative governance and human resources. According to him, there are still many cooperatives that face limitations in managerial and operational competence, so they need assistance and capacity building.

In addition to these four conditions, Yusuf also highlighted the importance of working capital support for cooperatives, because their function as off takers requires cooperatives to buy the harvest from farmers, store stocks, and then wait for payment from the end buyer, namely the Nutrition Fulfillment Service Unit (SPPG).

"With limited working capital, delays in payment from SPPG can immediately disrupt the liquidity of the cooperative and potentially stop its business activities," said Yusuf.

He assessed that the government needed to ensure the readiness of cooperative businesses in a comprehensive manner before being assigned as suppliers of MBG.

The government targets that the Kopdes Merah Putih can play a role as an off taker of agricultural products, fisheries, livestock, and other village commodities, which will be channeled to meet the needs of the MBG Program.

The involvement of Kopdes Merah Putih is expected to shorten the distribution chain, strengthen the bargaining position of producers at the village level, and increase the economic impact of the program for the local community.