Indonesia plans a $1.2 billion investment in feed mills to boost poultry feed production. The initiative targets rising demand and seeks to address regional disparities. Key measures also aim to stabilise prices for farmers and consumers.
Indonesia is on track to invest $1.2 billion in a network of feed mills across several regions, as the country braces for a sharp rise in demand for poultry feed in 2026.
Major push for feed security
Under the initiative, potentially funded through the state Danantara Investment Management Agency, the Ministry aims to strengthen domestic livestock productivity, improve food security, and provide more stable feed supplies for small farmers.
The project is due to be implemented in 2 stages. First, the Ministry plans to select 12 sites for the feed mill construction. And second, 18 more feed mills will be built.
Construction of the first feed mills is preliminarily scheduled to begin in 2026.
Focus on under-served regions
Priority will be given to building new capacities in Kalimantan, Sulawesi, and Papua – regions with chronic feed shortages. The regions with sufficient feed production, such as Java and Sumatra, will receive fewer capacities, as the government aims to balance feed availability across Kalimantan, Sulawesi, and Papua, reducing regional disparities and stabilising local markets.
In parallel, the Indonesian Agricultural Ministry announced plans to introduce a fixed purchase price for corn from farmers and a maximum retail price for livestock producers. The Ministry officials explained that this measure is needed to “ensure price stability and strengthen farmers’ protection.”
A rise in poultry feed consumption
The new state project is intended to further fuel growth in Indonesian feed production. In 2026, Indonesia will see its feed production rise to 35 to 40 million tonnes, up from 26 to 28 million tonnes in 2024, Tri Melasari, Director of Feed at the Directorate General of Livestock Production and Animal Health of the Ministry of Agriculture, told local press.
By 2026, the chicken population, including broilers and layers, is projected to reach 4.8–5 billion heads, leading to a substantial rise in demand for feed. Against this background, broilers will need 15.6 million tonnes of feed and laying hens 20.2 million tonnes of feed in 2026, Melasari said.
Corn prices and global impact
However, the pace of growth in the Indonesian feed industry will depend on several factors, such as domestic corn prices and foreign trade dynamics. In addition to Indonesian exchange rate fluctuations, Melasari said, this will largely depend on trade tensions between the US and China, which affect commodity prices.
