POULTRYINDONESIA, Malang – The government, through the Daya Anagata Nusantara Investment Management Agency (Danantara), carried out the groundbreaking for the Integrated Poultry Downstreaming Development across six national sites on Friday (Feb 6, 2026), with Malang Regency, East Java, serving as one of the primary locations. Initiated by Agriculture Minister Andi Amran Sulaiman, this program is a proactive step to ensure national protein self-sufficiency remains secure, sustainable, and equitable as demand rises for the Free Nutritious Meal (MBG) Program.

While Indonesia has technically achieved self-sufficiency in chicken meat and eggs, the government believes the supply structure must be strengthened to handle surges in demand. The additional requirements to support the MBG program are estimated at 1.1 million tons of chicken meat and 774,000 tons of eggs annually.

The Director General of Livestock and Animal Health at the Ministry of Agriculture, Agung Suganda, emphasized that this project is not merely about building coops, but about reinforcing an integrated poultry ecosystem from upstream to downstream.

“This integrated poultry downstreaming is a direct initiative of the Minister of Agriculture as a strategic state measure to ensure protein self-sufficiency runs sustainably and fairly, favoring smallholder farmers,” Agung stated during the Danantara Phase I Downstreaming Groundbreaking held hybridly in Malang.

He added that the Ministry of Agriculture fully supports the downstreaming program as an instrument for equalizing production across regions while maintaining price stability and supply certainty, especially to support the implementation of the MBG program.

Building a Comprehensive Ecosystem

According to Agung, the ecosystem being developed includes:

• Upstream Breeding: From Grand Parent Stock (GPS) and Parent Stock (PS) to Final Stock (FS).

• Feed Strengthening: Utilizing domestic raw materials.

• Animal Health: Enhanced veterinary standards.

• Infrastructure: Construction of Poultry Slaughterhouses (RPHU) and cold chain systems.

• Processing & Logistics: Meat and egg processing, logistics, and marketing systems.

Investment and Funding

From a financial perspective, the government has prepared approximately IDR 20 trillion in investment support from Danantara. Additionally, IDR 50 trillion in People’s Business Credit (KUR) has been allocated for farmers and cooperatives, including those under the “Merah Putih” Village Cooperative scheme.

Gimoyo, President Director of ID Food, stated that the state-owned food enterprise will act as an offtaker for smallholder production while maintaining market balance. In this initial phase, groundbreaking took place at six locations out of a planned 30 nationwide:

1. Malang, East Java

2. Bone, South Sulawesi

3. North Gorontalo, Gorontalo

4. Paser, East Kalimantan

5. Sumbawa, West Nusa Tenggara

6. South Lampung, Lampung

A Presidential Priority

The groundbreaking was officially inaugurated by the Minister of Investment and Downstreaming/Head of BKPM and Head of BPI Danantara, Rosan Roeslani. Rosan noted that Danantara is currently supporting six strategic downstreaming projects with a total investment value of approximately USD 7 billion, all of which are priorities for the President.

“Downstreaming projects have always been a priority for the President. Therefore, we continue to accelerate them so the benefits are truly felt by the people’s economy,” Rosan remarked.

Economic and Social Impact

The government projects that this integrated poultry project will yield:

• Production Increase: 1.5 million tons of chicken meat and 1 million tons of eggs per year.

• Job Creation: Approximately 1.46 million new jobs.

• Farmer Income: An increase in gross income by up to IDR 81.5 trillion per year.

• Social Benefit: Supporting 82.9 million MBG beneficiaries and contributing to the reduction of stunting and national poverty.

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