Indonesia’s Agriculture Minister Andi Amran Sulaiman has announced plans to establish new poultry (broiler and layer) farms in regions where chicken meat and egg prices exceed the government’s reference rate.
Mr Sulaiman attributed the surge in national chicken meat and egg demand to the government’s free nutritious meal program. He estimated that the program will require an additional 1.1 million tons of chicken meat and 700,000 tons of eggs to meet demand.
He expects the establishment of new poultry farms to create jobs for around 1.4 million people.
The Agriculture Ministry will map regions with high chicken meat and egg prices to determine suitable sites for new poultry farms, a strategy Mr Sulaiman described as crucial to achieving more equitable production and price stability nationwide.
Egg prices
Data from Bank Indonesia’s National Strategic Food Price Information Center show that egg prices in several provinces continue to trade above the government’s benchmark.
As of November 4, prices in provinces such as West Sumatra, South Sumatra, Banten and Yogyakarta ranged between USD 1.67 and USD 1.79 per kg, above the farmer-level reference price of USD 1.59 per kg as stipulated in the National Food Agency’s regulation.
Free nutritious meal program drives surging demand
The free nutritious meal program has driven a surge in demand for eggs and chicken meat, contributing significantly to monthly inflation in October 2025, according to data from the Statistics Center Agency.
Pudji Ismartini, the agency’s Deputy for Distribution and Services Statistics, said demand for the two food commodities had risen sharply since the program began several months ago.
The agency’s data show that chicken meat and eggs were the main drivers of inflation in the volatile food category in October.
Eggs recorded a 4.43% month-on-month inflation rate, contributing 0.04 percentage points to overall inflation, while broiler chicken meat saw 1.13% inflation, contributing 0.02 percentage points.
Ms Ismartini attributed the price increases to growing demand from the program’s Nutrition Fulfillment Service Units, which source their supplies from local markets and retailers.
“This is one of the indicators of rising demand for eggs and chicken meat,” she said.
She also noted that the production cost for broiler chicken has been rising, including prices for DOC and feed corn in several regions.
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