Indonesia has announced a comprehensive USD 1.2 billion (IDR 20.3 trillion) investment plan to expand its feed mill infrastructure, primarily targeting increased poultry feed production to meet an anticipated demand surge by 2026. Spearheaded by the Ministry of Agriculture and potentially funded through the Danantara Investment Management Agency, the initiative aims to enhance domestic livestock productivity, bolster food security, and ensure reliable feed supplies for small-scale farmers. This expansion is a strategic response to the growing needs of the poultry sector, which is vital to Indonesia’s agricultural economy.
The project will unfold in two phases: initially selecting and constructing feed mills at 12 sites, followed by an additional 18 mills. Construction is slated to commence in 2026, with a focus on underserved regions such as Kalimantan, Sulawesi, and Papua, where feed shortages are prevalent. In contrast, areas with adequate existing capacity, like Java and Sumatra, will receive fewer new facilities to promote nationwide balance, reduce regional disparities, and stabilize local markets.
To support price stability and farmer protections, the Ministry plans to implement a fixed purchase price for corn from local farmers and a maximum retail price for livestock producers. Feed production is projected to increase from 26-28 million tonnes in 2024 to 35-40 million tonnes by 2026, driven by an expected chicken population of 4.8-5 billion heads, requiring around 15.6 million tonnes for broilers and 20.2 million tonnes for laying hens.
However, the plan’s success hinges on variables like domestic corn prices, currency exchange fluctuations, and international trade dynamics, particularly tensions between the US and China affecting global commodity markets. Tri Melasari, Director of Feed at the Directorate General of Livestock Production and Animal Health, emphasized these production forecasts in recent statements, underscoring the need for adaptive strategies to achieve the targeted growth.
(Source: All About Feed)
