Data from Bank Indonesia (BI) shows that the national average price of chicken eggs in traditional markets was Rp 30,850 (US$2.08) per kg as of Tuesday, up 21.9 percent year-on-year (yoy) and 5.1 percent month-to-month (mtm).

Typically, chicken eggs cost Rp 23,000 to Rp 26,000 per kg at the retail level and Rp 19,000 to Rp 21,000 per kg at the farmer level. Chicken eggs are an affordable and widely consumed protein source in Indonesia.

Statistics Indonesia (BPS) data shows that headline inflation rose to 4.94 percent yoy in August, up from 4.35 percent yoy in July, largely due to food, beverage and tobacco prices.

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Indonesia Poultry Farmers Association and Information Center (Pinsar) chair Yudianto Yosgiarso said the price of chicken eggs had jumped because of issues with government purchases of the staple food for social aid programs.

He said the Social Affairs Ministry had bought eggs in bulk for distribution to low-income citizens but had chosen to buy and distribute them in large quantities over a short period of time, rather on a monthly basis. This, he said, had drastically increased the demand for chicken eggs, even though retail demand had remained stable.

The government, he said, had dealt with middlemen, instead of farmers associations, to make the purchases and distributions, which left producers powerless to reconcile the demand spike with the supply.

“We hope that the distribution [in the future] will be mandated to the egg breeder cooperative [...] so that the absorption of the distribution is not just for a few [businesses] but fairly distributed,” Yudianto told The Jakarta Post on Wednesday.

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Indonesian Political Economy Association agriculture expert Khudori said the chicken egg price spike would likely be seasonal, in accordance with the social assistance program cycle.

He noted that during the pandemic, producers had reduced their production to manage costs, so when demand had suddenly surged, they had to expand production rapidly, increasing costs.

“The Social Affairs Ministry should not distribute three months [of egg supplies] at a time, but instead opt [to distribute them gradually] each month, so as not to put pressure on demand. That way, supply and demand can be more balanced,” Khudori told the Post on Wednesday.

The Indonesian Bazaar Merchants Association (IKAPPI) took issue with comments made by Trade Minister Zulkifli Hasan in regard to the record-high prices of chicken eggs, saying he should have shown more seriousness about the issues that the spike had created.

Zulkifli, also the chairman of National Mandate Party (PAN), said on Tuesday that the skyrocketing prices of chicken eggs were "not significant", adding that the issue "should not cause an uproar".

 “This is the highest price in the history of the last 5 years the Trade Ministry [has been measuring such data],” IKAPPI chair Abdullah Mansuri said on Tuesday, noting that the government should “gather major breeders" to solve the issue.

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