Since the US–Iran conflict escalated, Indonesia's livestock industry has faced steadily rising production costs. One of the biggest challenges has been the continuous increase in animal feed prices, making it more difficult for producers to lower the prices of chicken, eggs, and beef for consumers.

From February 2026 to the present, feed prices have risen steadily with little sign of abating. Corn, the main ingredient in animal feed, has stayed above IDR 6,000 per kilogram, while wholesale prices have ranged between IDR 6,000 and IDR 6,500 per kilogram. Higher corn prices have become one of the main drivers of rising feed costs.

A further contributor is the depreciation of Indonesia's rupiah. During the same period, the rupiah weakened from around IDR 16,750 to more than IDR 18,150 per US dollar. Because many feed ingredients and production inputs depend on imports, a weaker currency has further raised production costs for feed producers.

As a result, livestock feed prices have risen by double-digit percentages. One market sample showed an increase of approximately 12.2% during the period. Higher feed costs directly raise livestock production expenses, making it increasingly difficult for farmers and suppliers to offer more affordable sources of animal protein.

Chicken prices have remained relatively high despite temporary declines in demand. According to Indonesia's National Strategic Food Price Information Center (PIHPS), chicken meat is currently sold at an average of IDR 38,900 per kilogram nationwide. Prices are around IDR 38,050 per kilogram in Jakarta and approximately IDR 42,750 per kilogram in North Sumatra.

Observations from a retailer outlet indicate that chicken prices have fluctuated between IDR 28,000 and IDR 41,000 per kilogram since February. Prices were lowest after the school holiday period and during the Islamic month of Muharram, when demand fell. They reached their highest levels during Ramadan and Eid al-Fitr, when consumer spending rises seasonally. At present, the same retailer is selling chicken for around IDR 35,000 per kilogram.

The increase in production costs has also affected other food products. Chicken eggs are commonly sold for IDR 1,600 to IDR 2,200 per egg, while beef prices in North Sumatra range between IDR 145,000 and IDR 160,000 per kilogram. As feed becomes more expensive, producers face greater pressure to pass those higher costs on to consumers.

Going forward, Indonesia's food prices will continue to be influenced by global geopolitical developments. If geopolitical tensions persist, higher energy and transportation costs could keep feed prices elevated. Combined with softer household purchasing power and inflation risks, policymakers may need targeted measures to reduce production costs and stabilize food prices for consumers.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)