POULTRYINDONESIA, Jakarta — The Producers Cooperative of the People’s Economic Empowerment Institution (LPER) has officially entered into a partnership with Ayam Gepuk Pak Gembus to strengthen upstream–downstream integration in the food sector. The collaboration was formalized through the signing of a Cooperation Agreement (PKS) on Friday (January 23) at the Ministry of Agriculture, Jakarta. The agreement was signed by H. Mulyadi Atma, Chairman of the LPER Producers Cooperative, and Rido Nurul Adityawan, Founder of Ayam Gepuk Pak Gembus.
This cooperation brings together a farmer cooperative as the upstream driver and a national culinary business player as the downstream anchor. The government views this partnership model as having strong potential to provide market certainty for smallholder poultry farmers while strengthening the national poultry supply chain.
The Director of Animal Breeding and Livestock Production at the Directorate General of Livestock and Animal Health Services (Ditjen PKH), Hary Suhada, who witnessed the signing, stated that the collaboration aligns with government policy to strengthen a partnership-based livestock ecosystem. According to Hary, the government seeks to ensure that farmers are not only producers, but also enjoy business certainty.
“Ditjen PKH continues to strengthen the role of farmers as key actors. One way is by facilitating upstream–downstream partnerships so farmers gain business certainty, market access, and fairer added value,” said Hary.
In a separate statement, Agung Suganda, Director General of Livestock and Animal Health Services at the Ministry of Agriculture, emphasized that the government is promoting fair and equitable partnerships between farmers and business actors as part of efforts to strengthen national food security.
“The Ministry of Agriculture encourages mutually beneficial and fair partnerships. Farmers must receive market certainty and reasonable prices, while business players gain sustainable supply. Collaborations like this are in line with the Ministry’s policy to strengthen the national poultry ecosystem,” Agung stated.
According to Agung, upstream–downstream integration is key to maintaining the sustainability of farmers’ businesses amid market volatility. He stressed the government’s role as a facilitator to ensure partnerships are transparent and do not disadvantage farmers.
“We ensure that the state is present to protect farmers. Upstream–downstream partnerships are not merely about business, but part of a broader effort to safeguard food security and sustainably improve farmer welfare,” Agung added.
Meanwhile, Ayam Gepuk Pak Gembus currently operates more than 850 outlets, supported by approximately 14,000 workers, and maintains partnerships with over 200 Islamic boarding schools (pesantren) nationwide. The company has also expanded into overseas markets, including Malaysia. With this scale, cooperation with farmer cooperatives is expected to create relatively stable market demand for smallholder poultry production.
