Danantara's Massive Poultry Investment Plan Faces Resistance from Existing Farmers

Background of the Investment Plan

Badan Pengelola Investasi (BPI) Daya Anagata Nusantara (Danantara) is planning to inject Rp20 trillion into Indonesia's poultry farming sector, focusing on both broiler and layer chickens ¹

. This massive investment is intended to support the government's 'Makan Bergizi Gratis' (MBG) program, a priority initiative under President Prabowo's administration.

Concerns from Existing Farmers and Industry Players

However, the plan has met with strong opposition from existing poultry farmers and industry associations. The main concern is that Danantara's entry into the market will create additional competition in an already saturated market, particularly in Java where about 60% of the country's poultry production is concentrated ¹

.

Regional Distribution and Infrastructure Considerations

To mitigate these concerns, experts suggest that Danantara should focus its investment in regions outside Java, where poultry production is currently lower ¹

. This approach could help address the existing disparity in poultry prices between Java and other regions.

Market Impact and Future Prospects

The entry of a state-backed entity like Danantara into the poultry farming sector is likely to have significant market implications. While it may help increase overall production capacity, it also risks disrupting the current market dynamics. The success of this plan will depend on careful planning and execution, particularly in terms of regional distribution and market coordination.