POULTRYINDONESIA, Bogor — The national poultry industry has experienced rapid growth over the last three decades. However, behind this significant production increase lies a shift in business structure that is deemed to be increasingly pressuring the sustainability of independent smallholder farmers. This was stated by Hartono, Advisor to the Association of Independent Smallholder Farmers of Indonesia (PERMINDO), in Bogor on Thursday (Feb 12).
According to Hartono, in the 35-year journey of the national poultry industry since 1991, production has skyrocketed from approximately 5 million birds per week to nearly 100 million birds per week. The price of Day-Old Chicks (DOC) has also surged from mere dozens of rupiah per bird to thousands, and even exceeding ten thousand rupiah per bird.
“This growth shows that the poultry industry is developing very rapidly. However, at the same time, the business structure has also undergone a massive transformation,” Hartono remarked.
The Shift from Protection to Free Market
He explained that while Presidential Decree (Keppres) No. 22 of 1990 was still in effect, the poultry farming sector was entirely in the hands of independent smallholder farmers. However, after that regulation was revoked by Keppres No. 85 of 2000, the farming sector turned into a free-market competition arena.
In this environment, smallholder farmers with limited capital must compete directly with large-scale players backed by massive capital. Hartono likened this situation to a “fight between a durian and a cucumber in the same ring—an unequal match of strength.”
The Need for Real Protection
PERMINDO, he continued, serves as a platform for the struggle of smallholder farmers amidst a lack of adequate policy protection. For years, smallholders have often been the hardest hit whenever fluctuations occur in the prices of DOC, feed, or live birds.
Currently, Ministry of Agriculture Regulation (Permentan) No. 32 of 2017 has been replaced by Permentan No. 10 of 2024, which will only take full effect on January 1, 2027. This transition period, according to Hartono, is a crucial time during which smallholders desperately need tangible protection.
He believes the government still faces challenges in controlling the allocation and pricing of DOC on the ground. “The regulations exist, but oversight and enforcement are not yet fully effective,” he said.
Demand for Justice and Fair Competition
PERMINDO hopes that when Permentan No. 10 of 2024 comes into force, the state will truly step in to protect smallholders. Hartono emphasized that regulations should not merely be “toothless tigers” but must possess real enforcement power.
During the forum, Hartono also stressed that smallholder farmers are not asking for special treatment. They only desire justice and a decent living space to conduct business, in accordance with the values of Pancasila and the 1945 Constitution.
PERMINDO explicitly urged the government to take a firm stance in protecting smallholder farmers. In their view, the state must be brave enough to enforce rules, correct market practices that harm farmers, and side with social justice.
“We do not want regulations to be beautiful on paper but weak in the field. If the state is firm, the market will be orderly. If the state is negligent, it is the smallholder farmers who will collapse,” Hartono stated.
