The Rp 20 trillion investment plan for the development of the national poultry industry is still being refined. With proper collaboration and well-targeted implementation, this major program could become an important momentum toward a stronger and more sustainable poultry sector.
After being officially announced in early November, the Rp 20 trillion investment plan prepared by the Daya Anagata Nusantara Investment Management Agency (Danantara) and currently being finalized by the government has drawn significant attention from all stakeholders in the national poultry industry. Minister of Agriculture Andi Amran Sulaiman emphasized that the development of the national poultry sector is part of the accelerated national food downstreaming program. This effort aims to ensure the availability of chicken meat and eggs as the backbone of the Free Nutritious Meal (MBG) program for all segments of society.
Amran explained that the investment plan does not focus solely on physical infrastructure development, but also on strengthening the industrial structure by involving state-owned enterprises (BUMN) as the main operators of feed mills and DOC production. According to him, this approach is designed to enable BUMN to act as price stabilizers, ensuring that small-scale farmers can still earn profits despite fluctuations in commodity prices.
“BUMN will operate in the upstream sector, starting from grandparent stock and parent stock, through to the development of poultry slaughterhouses (RPHU), cold storage, and processed livestock products. Meanwhile, the cultivation or on-farm sector will be handled by smallholder farmers, MSMEs, and cooperatives, including the Merah Putih Village Cooperatives (KDMP). This scheme will stabilize feed and DOC prices, which have been volatile and often detrimental to small farmers. Through this mechanism, feed and DOC prices are expected to be more controlled so that small farmers are protected, while consumers are not burdened by price spikes,” he said in a written press statement in Jakarta on Tuesday (11/11).
According to Amran, this mechanism also aims to equalize production and distribution facilities outside Java Island. The program is expected to increase national chicken production capacity by up to 1.1 million tons and egg production by 700,000 tons per year, while also encouraging the creation of millions of new jobs in rural areas over the next four years.
“We want small farmers not only to survive, but to move up a level. The government is present to build the ecosystem, not to replace their role,” he added.
Meanwhile, Danantara Chief Operating Officer Dony Oskaria explained that the poultry farm development plan is still being comprehensively reviewed and will later be regulated through a Joint Ministerial Decree (SKB) involving relevant ministries and institutions. He stated that Danantara, as a corporation, will conduct careful assessments and implement the program in accordance with good corporate governance principles. Dony emphasized that implementation will begin only after the necessary infrastructure and regulations are jointly established with the government.
“This Rp 20 trillion investment will be focused on the development of modern breeding facilities, feed mills, and integrated chick and feed distribution facilities connected to the national logistics system, particularly outside Java Island. Meanwhile, the cultivation of broiler and layer chickens will be carried out by smallholder farmers under the Merah Putih Village Cooperatives, supported by People’s Business Credit (KUR) amounting to Rp 50 trillion. This scheme is expected to expand access to capital for small farmers so they can operate more efficiently,” he said in the same press statement.
In a PKB Fraction public discussion at the Parliamentary Complex on Thursday (27/11), the Director General of Livestock and Animal Health, Agung Suganda, explained that the government and Danantara are still formulating the investment scheme for restructuring the national poultry industry. He noted that the proposed scheme remains under discussion and is highly dynamic, as the government seeks input from various stakeholders. Agung emphasized that the deliberation process is ongoing and has not yet reached a final stage.
