POULTRYINDONESIA, Jakarta – Every investment in the poultry industry must benefit local farmers, not instead narrow their room to grow. This was conveyed by the Director General of Livestock and Animal Health at Indonesia’s Ministry of Agriculture, Agung Suganda, in Jakarta on Saturday (May 9, 2026).

“The development of the livestock subsector must involve all stakeholders, ranging from smallholder farmers, cooperatives, local businesses, to state-owned enterprises (SOEs) in the food sector.”

Agung emphasized that the government is not closing its doors to investment. However, incoming investments must strengthen the national poultry industry chain from upstream to downstream, rather than merely seeking profit without considering the welfare of domestic farmers.

He also shared the direction from Agriculture Minister Amran Sulaiman, stating that investment must not marginalize local farmers in their own country. “Investment must create room for national poultry farmers to grow, not widen inequality within the country,” Agung said.

To achieve this, the Ministry of Agriculture is currently strengthening the government’s Integrated Chicken Downstreaming (HAT) model, which covers the entire production chain from breeding, feed, processing, distribution, to food product absorption.

Smallholder poultry farmers are positioned not as peripheral players, but as a core part of the national production chain. Food-sector SOEs are also being involved to absorb farmers’ production, maintain price stability, and strengthen distribution.

“We want investment that creates jobs, strengthens national production, and improves farmers’ welfare. That is the main principle,” Agung stated.

Senior Economist at INDEF, Tauhid Ahmad, supported the Ministry’s policy direction. According to him, Indonesia’s national poultry industry is actually capable enough to stand on its own, including meeting the supply chain needs of the Free Nutritious Meals (MBG) program.

“The domestic industry and independent poultry farmers are actually capable of carrying this out without having to depend on cooperation with foreign parties,” he said.

He expressed concern that if this major opportunity is instead handed over to foreign investors, the economic added value that should benefit the domestic economy would flow overseas. This would include not only financial profits, but also technology, employment opportunities, and production inputs such as poultry medicines and breeding stock.

“Meanwhile, independent farmers around the MBG program areas could potentially lose their market,” he added.

Tauhid also warned about pressure on the trade balance. In the first quarter of 2026, imports grew by 7.18 percent while exports increased by only 0.90 percent. Dependence on foreign parties in the poultry sector could worsen these figures.

“All stakeholders need to sit together — the government, businesses, and representatives of independent poultry farmers — to seek a fair middle ground. Food security should not only be about production, but also about farmers’ welfare,” he concluded.

In line with this, Professor of Livestock Socio-Economics at Universitas Gadjah Mada, Prof. Budi Guntoro, added another perspective, stating that Indonesia is currently experiencing an egg surplus, not a shortage.

“Indonesia is not lacking eggs, but rather facing a structural surplus,” Prof. Budi said based on a press release received on Tuesday (April 12, 2026).

This means the main issue is not increasing production, but rather weak distribution systems and the still-low bargaining position of smallholder farmers in the market. Under such conditions, opening more space for large-scale capital, especially foreign investment, risks worsening inequality.

“In the current surplus situation, the more appropriate solution is to strengthen farmer cooperatives, improve distribution channels, and build partnerships that truly benefit local farmers, rather than opening the door to domination by large-scale capital, including foreign investors,” he stressed.

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