Poultry farmers have welcomed the government’s plan to invest Rp20 trillion in the broiler and layer chicken farming sector. However, they cautioned that the policy must not solely benefit large corporations, but rather include small-scale farmers who continue to struggle under difficult conditions.

The Secretary-General of the National Poultry Farmers Association (GOPAN), Sugeng Wahyudi, stated that this initiative is a crucial momentum to strengthen the national poultry industry, particularly at the upstream production level.

“According to the information we’ve received, we highly appreciate the government’s decision to allocate Rp20 trillion,” Sugeng told CNBC Indonesia on Tuesday, November 11, 2025.

He said that strengthening the broiler farming sector has long been anticipated by local farmers. However, he stressed that this major project must not become a competitor to small independent farmers.

“We certainly welcome efforts to empower the poultry farming industry, particularly broilers. But it should not end up competing with existing smallholders,” he emphasized.

Sugeng urged the government to prepare the project’s implementation carefully, especially regarding the readiness of state-owned food enterprises (BUMN) that will execute the policy. If not managed properly, he warned, this massive investment could fail to address the real problems faced by grassroots farmers.

“The government, especially state-owned food companies, must be well-prepared for this policy. Without proper readiness, the program may miss its intended targets,” he asserted.

He also reminded that state-owned enterprises should not partner primarily with major corporations, as that would defeat the purpose of the Rp20 trillion program, which is to empower small and struggling farmers.

“For example, if BUMN teams up with big companies, the program’s core objective will be lost. This policy should instead build a new ecosystem based on strong and resilient small farmers, including those who went bankrupt over the past decade,” Sugeng said.

When asked whether poultry farmers support the program, Sugeng expressed full support, provided that small farmers are genuinely involved and the benefits are directly felt by them.

“We fully support the program, as long as small-scale farmers are involved and their welfare improves as a result,” he reaffirmed.

Small Farmers Still Suffer Losses, Demand Price and Supply Stability

Sugeng described that small poultry farmers remain under pressure. The current farm-gate price of live chickens fails to cover production costs, leaving many farmers in financial distress.

“At present, farmers are losing money because live chickens are sold at around Rp19,000 per kilogram, while production costs reach Rp21,000. Two weeks ago, they earned profits when prices hit Rp22,000. This shows how volatile the market is,” he explained.

He stressed that with such a large government investment, authorities must ensure stability in the supply chain and pricing, so that farmers no longer fall into the same profit-loss cycle.

“Yes, there must be price certainty—with fair input costs and selling prices set above the cost of production,” he said.

Sugeng further emphasized the importance of state-owned food enterprises serving as price stabilizers in the poultry sector. With effective management, the government can play a strategic role in market stabilization during times of supply or price disruptions.

“The government must ensure that the Rp20 trillion investment through BUMN truly impacts the poultry economy, so that its function as a stabilizer during market distortions can be felt,” he noted.

This Rp20 trillion investment plan is part of the government’s broader strategy to strengthen national food security, particularly in support of President Prabowo Subianto’s Free Nutritious Meal (MBG) program.

Minister of Agriculture and Head of the National Food Agency (Bapanas), Amran Sulaiman, previously confirmed that the project will develop integrated broiler and layer farms across multiple regions, involving as many small farmers as possible.

“The integrated broiler and egg farming initiative has a dedicated budget of Rp20 trillion,” Amran announced during a press conference at the Ministry of Agriculture Auditorium in Jakarta, on Friday, November 7, 2025.

The project will be funded by the Indonesia Investment Management Agency (BPI Danantara), with priority given to regions suffering from shortages of chicken and eggs.

Amran added that the project will begin in early 2026, prioritizing areas still struggling with insufficient poultry supply.

“We are currently conducting the pre-feasibility study as instructed by President Prabowo, and hopefully, by January 2026, construction of the poultry farms will commence,” he stated.