POULTRYINDONESIA, Jakarta<\/b> \u2013 The Daya Anagata Nusantara Investment Management Agency (Danantara) has confirmed it will begin the construction of integrated poultry industry downstreaming projects across five regions in Indonesia. Scheduled to commence shortly, the project is part of the government\u2019s strategy to strengthen the national food sector through downstreaming.<\/p>\n
Danantara CEO Rosan Roeslani stated at the IDN Building in Jakarta on Wednesday (Jan 14) that the poultry industry is among six priority downstreaming projects the government will begin building in February 2026. However, he has not yet disclosed the specific locations for these projects.<\/p>\n
Earlier, during the inauguration of the Pertamina Refinery Development Master Plan (RDMP) in Balikpapan on Monday (Jan 12), President Prabowo Subianto stated that Indonesia has the potential to secure up to US$ 6 billion (equivalent to Rp 101 trillion) in downstreaming investments in the near future. The government aims to realize six to eleven downstreaming projects across various strategic sectors, including poultry.<\/p>\n
From a capital market perspective, this policy is expected to provide a positive boost for poultry sector stocks. Beyond industrial downstreaming plans, the sector is also supported by the Free Nutritious Meal (MBG)<\/b> program, a national priority.<\/p>\n
Furthermore, Danantara is reportedly set to channel approximately Rp 20 trillion in investment to strengthen the national poultry industry across 13 provinces. This move is seen as having the potential to increase production capacity while maintaining the stability of animal protein supply.<\/p>\n
In his analysis, CGS International Securities Analyst Jason Chandra noted that the MBG program is a primary driver for the growth in broiler chicken demand. He recorded that in the fourth quarter of 2025, the average price of broiler chicken reached Rp 22,800 per kilogram\u2014an 8% increase from the previous quarter and a 5% increase year-on-year. This surge was triggered by increased absorption from the MBG program.<\/p>\n
\n“The surge in demand is expected to lead JPFA<\/b> to record-breaking earnings per share, aligning with the accelerated coverage of the MBG program by the National Nutrition Agency (BGN). As of December 2025, the number of program beneficiaries reached 55 million people, a sharp increase from approximately 20 million in August 2025,” Jason wrote in a research report published Tuesday (Dec 2).<\/p>\n<\/blockquote>\n
Beyond volume, there has also been an improvement in cash flow. The advance payment scheme implemented through central kitchens is considered effective in reducing the risk of payment delays to suppliers.<\/p>\n
“We estimate that the net profits for JPFA<\/b> and CPIN<\/b> in FY25F will reach Rp 3.9 trillion and Rp 5.3 trillion, respectively\u2014representing year-on-year growth of 30% and 42%,” Jason added.<\/p>\n
Future Projections<\/h3>\n
Furthermore, Jason believes the strong trend in broiler prices in Q1 2026 has the potential to sustain the performance of poultry sector stocks. Seasonally, chicken prices tend to strengthen during the Ramadan and Eid al-Fitr periods, which fall within that quarter. This momentum coincides with the publication of the 2025 fiscal year financial reports, which are expected to exceed market expectations.<\/p>\n
Regarding production costs, pressure is expected to ease. Ministry of Agriculture data showed that corn prices had risen to Rp 6,000 per kg in Q4 2025 due to distribution bottlenecks. However, after the government implemented price cap policies, corn prices have gradually stabilized.<\/p>\n
Meanwhile, global soybean meal prices have dropped approximately 8% from their peak in late November 2025. In line with USDA projections\u2014which expect global supply to exceed demand\u2014the price of this commodity has the potential to weaken further, creating room for margin improvement for poultry industry players.<\/p>\n