Indonesia Launches Integrated Poultry Downstreaming

RRI.CO.ID, Jakarta - Integrated poultry downstreaming operations were initiated by the Indonesian government in six diverse regions on Friday, February 6, 2026, to strengthen the country's protein self-sufficiency and stabilize national food prices. 

Announced by the Ministry of Agriculture on Sunday, February 8, 2026, this multi-regional strategy is designed to transform the poultry sector by integrating production and processing facilities to maximize the economic value of livestock products. 

Through this localized yet federally supported approach, the government intends to maintain a consistent and sustainable supply of protein for all citizens, while simultaneously empowering regional economies through modern agricultural industrialization.

"The government is strengthening the foundation of national protein self-sufficiency through the development of integrated poultry downstreaming from upstream to downstream in six regions," said Agung Suganda, Director General of Livestock and Animal Health at the Ministry of Agriculture, in Jakarta on Sunday, as quoted by Antara.

This strategic move was marked by the Phase I Groundbreaking of Integrated Poultry Downstreaming Development led by Danantara, with the main event centered in Malang, East Java. Initial development is taking place in six locations, East Java, South Sulawesi, Gorontalo, East Kalimantan, West Nusa Tenggara, and Lampung as part of a national plan spanning 30 locations.

Agung noted that this downstreaming program was initiated by Agriculture Minister Andi Amran Sulaiman as a proactive state measure to ensure a safe, sustainable, and equitable supply of chicken meat and eggs that supports small-scale farmers. "As national demand increases, particularly to support the Free Nutritious Meal (MBG) Program, which is estimated to require 1.1 million tons of chicken meat and 774,000 tons of eggs annually," Agung explained.

He emphasized that poultry downstreaming represents the construction of a national poultry ecosystem integrated from the breeding stages to the final market. “This integrated poultry downstreaming is to ensure that protein self-sufficiency runs sustainably, equitably, and in favor of small-scale farmers,” Agung said.

The ecosystem being built includes strengthening chicken breeding from the upstream starting with Grand Parent Stock (GPS), Parent Stock (PS), and Final Stock (FS) as well as developing feed based on domestic raw materials. It further involves improving animal health, constructing poultry slaughterhouses (RPHU) and cold chains, processing meat and eggs, and managing logistics and marketing.

Regarding funding, the government has prepared approximately IDR 20 trillion (USD 1.18 billion) in investment support through Danantara. Additionally, up to IDR 50 trillion (USD 3 billion) in People’s Business Credit (KUR) has been allocated for farmers and cooperatives, including those under the Red and White Village Cooperative scheme.

ID Food President Director Gimoyo said that the food SOE will play a role in absorbing production from small-scale farmers while maintaining market balance. Meanwhile, Rosan Roeslani, CEO of the Danantara Investment Management Agency (BPI), mentioned that his party currently supports six strategic downstreaming projects with an investment value of around USD 7 billions, all of which are priorities for President Prabowo Subianto.

“Downstreaming projects have always been a priority for the President. Therefore, acceleration continues to be carried out so that the benefits are truly felt by the community's economy,” Rosan said during the Phase I groundbreaking ceremony. 

Through this project, the government projects an additional production of 1.5 million tons of chicken meat and 1 million tons of eggs per year. The program is expected to create approximately 1.46 million new jobs and increase the gross income of farmers by up to IDR 81.5 trillion (USD 4.8 billion) annually. 

From a social perspective, this protein supply is expected to support 82.9 million beneficiaries of the Free Nutritious Meal program while contributing to the reduction of stunting and poverty. ***