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View all search resultsDanantara’s poultry push raises concerns over market distortion
Indonesia has enjoyed a surplus in chicken meat production since 2020, Statistics Indonesia (BPS) data show, with excess supply continuing even after the free meals program began.
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A worker feeds chickens on Feb. 5, 2022, at a poultry farm in Sibreh, Aceh (AFP/Chaideer Mahyuddin )
T
he government is rolling out integrated poultry farming projects across 12 regions through state asset fund Danantara to supply President Prabowo Subianto’s flagship free nutritious meals program, but economists and industry groups warn the move could distort an already well-supplied market.
The projects, led by state-owned food holding company PT Rajawali Nusantara Indonesia, or ID Food, via its subsidiary PT Berdikari, will focus on upstream production such as day-old chicks (DOC), vaccines and animal feed, areas long controlled by major private players.
ID Food on Friday inaugurated a 5.6-hectare facility in Malang, East Java, with capacity for 18,000 grandparent stock, projected to produce 900,000 parent stock and 130 million final stock.
Similar facilities are under construction in South Sulawesi, East Kalimantan, Lampung, Gorontalo and West Nusa Tenggara, with total planned investment reaching Rp 20 trillion (US$1.28 billion), fully funded by Danantara.
Read also: Danantara breaks ground on $7b downstream industry projects
Berdikari president director Maryadi said on Monday the project was aimed at addressing what he described as a 1 million tonne gap between national chicken meat demand of 5 million tonnes, and production of about 4 million tonnes annually, much of it concentrated on Java.
“The parent stock will be distributed to regions outside Java to support sustainable, efficient and competitive broiler production, with potential output of around 169 million kilograms of chicken carcasses,” Maryadi said in a statement.
