10 Dec 2025

Indonesia allocates $1B for poultry feed development

The Ministry of Agriculture of Indonesia has announced a transformative investment initiative: over US$1 billion allocated to build state-of-the-art feed mills, aiming to boost poultry feed production and secure the country’s growing poultry sector.

David Corredor

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The Ministry of Agriculture of Indonesia has announced a transformative investment initiative: over US$1 billion allocated to build state-of-the-art feed mills, aiming to boost poultry feed production and secure the country’s growing poultry sector. This ambitious plan addresses rising demand, regional imbalances, and the need for stable supply chains ahead of a significant production surge expected in 2026.

Investment plan

The project is structured in two phases.
Initially, the government will construct 12 feed mills.
This will be followed by an expansion to include 18 more facilities, bringing the total to 30 mills nationwide.
Construction is tentatively scheduled to begin in 2026, following site selection and planning.
The state-owned Danantara Investment Management Agency will likely fund the initiative, with support from the Agricultural Ministry.

Regional focus: addressing disparities

A central goal of the investment is regional equity. Priority will be given to Kalimantan, Sulawesi, and Papua, where feed shortages are common. Java and Sumatra, by contrast, already have established feed production infrastructure and will receive fewer new facilities. The strategy is designed to balance feed availability, reduce regional price volatility, and support local poultry farmers.

By 2026, Indonesia’s poultry feed production is projected to rise dramatically—from 26–28 million tonnes in 2024 to 35–40 million tonnes.
This comes amid forecasts that the national chicken population (broilers and layers combined) will reach 4.8–5 billion heads.
Broilers are expected to consume about 15.6 million tonnes of feed, while laying hens will require roughly 20.2 million tonnes.

Broader objectives and strategic impacts

The investment supports broader goals: increasing domestic livestock productivity, strengthening food security, and bolstering smallholder farmers’ stability. By improving feed supply, the initiative will help reduce dependency on expensive imports and expand Indonesia’s capacity to meet rising domestic and regional poultry demands.

Domestic corn price volatility and potential currency fluctuations.
Global trade dynamics, notably tensions between the U.S. and China affecting commodity prices.

The project’s success will depend on effective coordination among the Agricultural Ministry, Danantara, and local stakeholders—as well as adaptability to fluctuating economic conditions.