Danantara Drives Downstream Integration of the Livestock Sector to Stabilize Prices in Indonesia

Jakarta – The government, through the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), continues to strengthen its integrated poultry downstream program as a strategic measure to maintain price stability of poultry commodities in Indonesia. The program is aimed not only at reducing price fluctuations, but also at reinforcing the supply of chicken meat and eggs, while supporting the sustainability of the Free Nutritious Meal Program (MBG).

Minister of Agriculture Andi Amran Sulaiman stated that downstream integration in the poultry sector primarily seeks to maintain price balance at both the farmer and consumer levels. According to him, stabilization efforts cannot rely solely on downstream or distribution sectors, but must begin with strengthening the upstream sector.

“Our main priority is to ensure that prices remain under control, whether for DOC, eggs, or chicken,” Amran said.

He explained that price stability largely depends on controlling key production components, including feed, vaccines, and day-old chicks (DOC). The government believes that intervention at the upstream level is the most effective way to mitigate price volatility, which frequently occurs in the poultry industry.

“To maintain price stability, the government must step directly into the upstream sector, such as feed, vaccines, and DOC. Without proper control in these areas, price stability will be difficult to achieve,” he added.

Amran also highlighted that Indonesia’s poultry industry has technically achieved self-sufficiency. However, price imbalances continue to generate complaints from both farmers and consumers.

“In fact, we are already self-sufficient in eggs and chicken. But in reality, farmers are complaining and consumers are also complaining. Both sides feel disadvantaged,” he noted.

In implementing the downstream integration program, Danantara is involving several State-Owned Enterprises (SOEs) to strengthen the poultry supply chain from upstream to downstream. Amran emphasized that SOE participation will be closely monitored to ensure it remains aligned with government objectives and targets.

Meanwhile, BPI Danantara CEO Rosan Roeslani revealed that the government has allocated Rp20 trillion in investment to support the poultry downstream integration program. He stressed that downstream integration remains a national priority agenda consistently promoted by President Prabowo Subianto.

“Downstream integration is always a key focus of the President. Therefore, we are accelerating its implementation so that the benefits can be directly felt by the public and have a tangible impact on the economy,” Rosan said.

The government projects that the integrated poultry downstream program will increase production by up to 1.5 million tons of chicken meat and 1 million tons of eggs annually. In addition, the project is expected to create approximately 1.46 million new jobs. In its initial phase, development will focus on six regions: Malang, Bone, North Gorontalo, Paser, Sumbawa, and South Lampung.

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