{"id":27572,"date":"2026-05-12T11:29:26","date_gmt":"2026-05-12T04:29:26","guid":{"rendered":"https:\/\/www.poultryindonesia.com\/?p=27572"},"modified":"2026-05-12T14:35:42","modified_gmt":"2026-05-12T07:35:42","slug":"govt-stresses-fair-investment-calls-for-inclusion-of-smallholder-farmers","status":"publish","type":"post","link":"https:\/\/www.poultryindonesia.com\/en\/govt-stresses-fair-investment-calls-for-inclusion-of-smallholder-farmers\/","title":{"rendered":"Govt Stresses Fair Investment, Calls for Inclusion of Smallholder Farmers"},"content":{"rendered":"
POULTRYINDONESIA, Jakarta \u2013 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\u2019s Ministry of Agriculture, Agung Suganda, in Jakarta on Saturday (May 9, 2026).<\/h6>\n
\u201cThe 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.\u201d<\/h6>\n
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.<\/h6>\n
He also shared the direction from Agriculture Minister Amran Sulaiman, stating that investment must not marginalize local farmers in their own country. \u201cInvestment must create room for national poultry farmers to grow, not widen inequality within the country,\u201d Agung said.<\/h6>\n
To achieve this, the Ministry of Agriculture is currently strengthening the government\u2019s Integrated Chicken Downstreaming (HAT) model, which covers the entire production chain from breeding, feed, processing, distribution, to food product absorption.<\/h6>\n
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\u2019 production, maintain price stability, and strengthen distribution.<\/h6>\n
\u201cWe want investment that creates jobs, strengthens national production, and improves farmers\u2019 welfare. That is the main principle,\u201d Agung stated.<\/h6>\n
Senior Economist at INDEF, Tauhid Ahmad, supported the Ministry\u2019s policy direction. According to him, Indonesia\u2019s 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.<\/h6>\n
\u201cThe domestic industry and independent poultry farmers are actually capable of carrying this out without having to depend on cooperation with foreign parties,\u201d he said.<\/h6>\n
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.<\/h6>\n
\u201cMeanwhile, independent farmers around the MBG program areas could potentially lose their market,\u201d he added.<\/h6>\n
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.<\/h6>\n
\u201cAll stakeholders need to sit together \u2014 the government, businesses, and representatives of independent poultry farmers \u2014 to seek a fair middle ground. Food security should not only be about production, but also about farmers\u2019 welfare,\u201d he concluded.<\/h6>\n
In line with this, Professor of Livestock Socio-Economics at Universitas Gadjah Mada<\/span><\/span>, Prof. Budi Guntoro, added another perspective, stating that Indonesia is currently experiencing an egg surplus, not a shortage.<\/h6>\n
\u201cIndonesia is not lacking eggs, but rather facing a structural surplus,\u201d Prof. Budi said based on a press release received on Tuesday (April 12, 2026).<\/h6>\n
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.<\/h6>\n
\u201cIn 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,\u201d he stressed.<\/h6>\n
Get more information about Indonesia\u2019s poultry industry by joining the Poultry Indonesia WhatsApp Channel.<\/a><\/h6>\n","protected":false},"excerpt":{"rendered":"

POULTRYINDONESIA, Jakarta \u2013 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\u2019s Ministry of Agriculture, Agung Suganda, in Jakarta on Saturday (May 9, 2026). \u201cThe development of the livestock subsector must involve all […]<\/p>\n","protected":false},"author":4,"featured_media":27569,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"cybocfi_hide_featured_image":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[45,38],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n