POULTRYINDONESIA, Jakarta – The Ministry of Agriculture (Kementan) has allocated Rp300 billion through December 2026 to support the development of feed corn cultivation across 300,000 hectares (ha). The program is part of the government’s efforts to build an integrated livestock ecosystem from upstream to downstream through partnerships involving corn farmers, cooperatives, livestock farmer groups, and Perum Bulog.

Minister of Agriculture Andi Amran Sulaiman said the government would integrate corn farmers and livestock producers into a single partnership system. Under this scheme, farmers will receive seed assistance to grow corn, while their harvests will be directed toward meeting the feed requirements of poultry producers, including both layer and broiler farmers.

“We are building a closed system from upstream to downstream. Upstream, we are bringing farmer groups and livestock producers together, with corn farmers and livestock producers operating as one integrated unit. We will establish cooperatives, allowing them to grow their own corn with support from the central government,” Amran said during the Feed Corn Partnership Coordination Meeting at the Ministry of Agriculture’s office in Jakarta on Tuesday (October 27, 2026).

The coordination meeting involved representatives of cooperatives, farmer groups, farmer group associations (gapoktan), Perum Bulog, and stakeholders from several major livestock and corn-producing regions, including Central Java, East Java, Lampung, the Special Region of Yogyakarta, West Java, and Banten. The meeting also featured the signing of memorandums of understanding (MoUs) between livestock producers and corn farmers.

Amran explained that annual demand for corn for animal feed stands at approximately 1.8 million tons. To meet this requirement, the government is targeting corn production of 2.1 million tons from 300,000 ha, assuming an average yield of 7 tons per ha.

Of the total production, approximately 1.8 million tons is targeted to meet livestock producers’ needs through cooperatives or livestock farmer groups partnering with corn farmers. The remaining 300,000 tons will be purchased by Perum Bulog, which will serve as the offtaker.

“Corn produced by farmers will be purchased directly by livestock producers or their groups. Any surplus will be purchased by Bulog. The corn will remain the property of the livestock producers, who can retrieve it from Bulog’s warehouses whenever they need it. This will operate under a warehouse receipt system,” Amran explained.

Through this mechanism, the government aims to provide farmers with market certainty while ensuring the availability of feed raw materials for livestock producers. Corn stored in Bulog’s warehouses can be drawn upon when supplies begin to decline, particularly during the September-to-January period.

Amran emphasized that the partnership program must be implemented in an orderly and targeted manner. Farmers supported through government programs are expected to benefit directly from the purchase of their harvests. The government will also involve regional authorities in monitoring implementation to prevent practices that could undermine the program’s objectives.

Meanwhile, the partnership program is designed to address persistent corn price issues that often place a burden on smallholder livestock producers. Under certain circumstances, rising feed ingredient prices can increase production costs and threaten the sustainability of livestock businesses.

As a short-term measure, the government has distributed corn through the Food Supply and Price Stabilization Program (SPHP), managed by Perum Bulog, at Rp5,000 per kilogram. This price is below prevailing market prices, which have reached Rp8,000–Rp8,500 per kilogram.

For the long term, Kementan is preparing free corn seed assistance for cultivation across 300,000 ha. The government has allocated Rp300 billion through the end of 2026 and plans to provide an additional Rp300 billion the following year, bringing the total allocation for the two-year period to Rp600 billion.

In addition to seed assistance, the government is preparing agricultural equipment support consisting of 100 tractors, 100 corn dryers, and 100 water pumps. Including these facilities, the program’s total budget through next year is estimated to reach approximately Rp1 trillion.

“We will provide subsidies through December, allocating Rp300 billion for 300,000 ha. Next year, we will provide another Rp300 billion, bringing the total to Rp600 billion. We are also providing 100 tractors, 100 dryers, and 100 pumps. Including next year’s allocation, the total budget will be approximately Rp1 trillion,” he explained.

Amran expressed hope that integrating corn production with livestock feed requirements would improve the welfare of livestock producers. According to him, challenges in the livestock sector must be addressed comprehensively, from ensuring the availability of feed raw materials to providing certainty that agricultural output will be absorbed by the market.

He noted that the Farmer Exchange Rate (NTP) across all agricultural subsectors had reached 131.11, while the livestock subsector’s NTP remained at 102.91. This disparity is among the issues the government is focusing on in its efforts to improve the welfare of livestock businesses.

“Our current challenge is the livestock sector. The plantation subsector is already among the most prosperous. If the livestock subsector’s NTP increases, we hope the overall NTP can reach around 140 in the future,” Amran said.

Through partnerships between corn farmers and livestock producers, production facility assistance, and measures to stabilize feed raw material supplies, Kementan hopes to establish a more integrated national corn supply chain. This is expected to give farmers greater market certainty while providing livestock producers with more reliable access to feed ingredients, helping sustain their businesses.

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