Indonesia Transfers Livestock Feed Imports to State-Owned Enterprises

Strategic Policy Move to Control Essential Commodities

The Indonesian government has announced a significant policy shift by transferring the authority to import livestock feed ingredients, particularly soybean meal (SBM), to state-owned enterprises (BUMN). This decision is part of a broader strategy to enhance state control over strategic commodities that are crucial for public welfare.

Drivers Behind the Policy Change

The decision comes in response to the growing demand for livestock feed driven by the government's 'Makan Bergizi Gratis' (MBG) program and the increasing population of poultry and cattle. According to Agung Suganda, Director General of Animal Husbandry and Animal Health at the Ministry of Agriculture, the import volume is expected to continue rising due to these factors.

Key Objectives of the New Policy

1. Better coordination and control over the import of essential livestock feed ingredients
2. Price stabilization for poultry and eggs to keep them affordable for consumers
3. Implementation of presidential directives to strengthen state control over strategic commodities

Implications for the Livestock Industry

The shift to BUMN-controlled imports is expected to bring more order to the livestock feed supply chain. By centralizing import authority, the government aims to prevent market volatility and ensure consistent supply. This move may have significant implications for both private importers and the overall livestock industry structure.