Indonesia’s poultry industry is a vital contributor to the national economy. Broiler chicken products account for most livestock output, reflecting strong domestic and export demand. In 2023, broiler meat production reached 4 million tons, positioning Indonesia as the sixth largest global producer. Yet processed chicken products have struggled to establish firm competitiveness abroad.
Exports of Indonesian processed chicken products (IPCP) rose steadily between 2014 and 2023, a paper presented at the 5th International Conference on Environmentally Sustainable Animal Industry noted. Products under HS code 160232, which cover meat preparations of domestic fowl, dominated with 99% of export value.
HS code 160239 refers to meat preparations of poultry excluding turkeys, prepared or preserved meat or offal, excluding livers and homogenized preparations. Though smaller in value, these products showed growth potential in niche markets.
Total IPCP exports reached over USD 2.16 million, with a sharp peak in 2023 at USD 964,059. Key markets included Japan, Timor-Leste, Singapore, Saudi Arabia, and Papua New Guinea. Together, they absorbed 95% of IPCP exports from 2014-2023. Japan emerged as the largest market, with cumulative imports of nearly USD 800,000.
Government efforts to strengthen downstream processing supported this growth. Policies encouraged value-added production, aiming to transform raw chicken into processed goods with stronger appeal in international markets.
Revealed Comparative Advantage (RCA) analysis showed mixed results. Most recipient countries recorded RCA values below one, indicating limited comparative advantage. However, Palau displayed a strong advantage for HS code 160232, with an RCA of 66.85 in 2023. Timor-Leste showed a moderate advantage for HS code 160239, with an RCA of 3.271 in 2021.
These findings suggest that while Indonesia has potential, competitiveness remains concentrated in smaller markets. High production costs compared to Thailand, Europe, and America hinder broader expansion. Inefficient supply chains and costly feed inputs, especially corn, contribute to these challenges.
Government regulations requiring slaughterhouses and cold chain facilities aim to improve efficiency. Policy reforms on corn imports and infrastructure modernization are also recommended to reduce costs and strengthen competitiveness.
Market Share Index analysis revealed notable dominance in select markets. In 2023, Indonesian products accounted for 27.2% of processed chicken in Palau. In 2021, Timor-Leste imported 100% of HS code 160239 products from Indonesia.
These results highlight Indonesia’s ability to secure niche markets where competition is limited. Expanding such footholds could provide a pathway to broader international presence. Lessons from Thailand’s poultry industry emphasize the importance of innovation, branding, and international networks in sustaining competitiveness.
Indonesian processed chicken products show promising export growth and selective comparative advantages. Success in Palau and Timor-Leste demonstrates potential for market expansion. However, high production costs and limited efficiency remain barriers. Continued downstream development, policy reforms, and technological innovation are essential to strengthen Indonesia’s position in global poultry trade.
Carcass Quality in Turkeys
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