POULTRYINDONESIA, Sleman – Discourse surrounding the proposal to open permits for foreign investors in the layer (egg-laying chicken) subsector needs to be approached proportionally. Amid the implementation of the Free Nutritious Meal Program (MBG), this idea has become sensitive as it is directly related to the strategic food sector and the sustainability of smallholder farmers.

Production data shows that Indonesia is not experiencing an egg shortage. In 2024, national production reached approximately 6.34 million tons and increased to over 6.5 million tons in 2025. Meanwhile, consumption demand stands at around 6.22 million tons. This means the domestic market is actually facing a structural surplus.

Professor at the Faculty of Animal Science, Universitas Gadjah Mada, Prof. Budi Guntoro, believes this condition must be carefully considered before opening the door to foreign investors. The issue in the layer subsector is not a lack of production, but rather an imbalanced market structure.

“The main challenges in the layer subsector lie in the imbalance of market structure, price volatility at the producer level, high production costs that are not always matched by selling prices, and the weak bargaining position of smallholder farmers within the value chain,” he said in an official statement from Universitas Gadjah Mada on Tuesday (April 28).

These conditions make small and medium-scale farmers vulnerable, even though they have long been the backbone of national egg production. The smallholder livestock sector is important as it absorbs labor, drives local economies, and ensures that production distribution is not concentrated among only a few large businesses.

“The layer subsector is not merely a business arena, but part of a regional development ecosystem. Therefore, the entry of foreign investors must be examined very carefully,” he explained.

On the other hand, the need for eggs to support the MBG program is considered relatively small. The estimated requirement is around 700 million eggs per year, or approximately 42,000 tons. This figure represents only about 0.6–0.7 percent of total national production. With such a proportion, he believes MBG does not require additional production capacity. The main challenge instead lies in how to absorb and distribute existing production more effectively.

According to Budi, the MBG program should be utilized as an instrument to balance the market. Through mechanisms such as medium-term purchase contracts, strengthening cooperatives or farmer clusters, and regional logistics support, MBG needs can be fully met from existing domestic production.

“This approach is not only economically efficient, but also promotes equitable distribution,” he said.

He also warned that if MBG becomes an entry point for foreign capital, the program’s orientation could shift—from initially strengthening the people’s economy to merely becoming a contract distribution mechanism for large capital players. In the long term, such a scenario risks weakening the independence of the strategic food sector and narrowing business opportunities for domestic producers.

“In the layer subsector, Indonesia already has sufficient production capacity and human resources. The challenge is not adding new players, but structuring policies to be more fair and sustainable,” he concluded.

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