Indonesian State-Owned Enterprises Launch Major Feed Mill Project

Strategic Investment in Agricultural Infrastructure

In a significant move to bolster Indonesia's agricultural sector, state-owned enterprises PTPN III and PT Berdikari are embarking on an ambitious project to construct 13 feed mills across the country. This Rp 20 trillion initiative, financed through Danantara, represents a crucial step towards enhancing domestic chicken and egg production capabilities.

Comprehensive Supply Chain Development

The project encompasses more than just feed mill construction. It includes the production of essential supplies such as medicine, vaccines, and day-old chicks (DOC), creating a comprehensive ecosystem for poultry farming. Minister of Agriculture Andi Amran Sulaiman emphasized that this initiative is designed to support independent farmers by providing them with government-regulated pricing for critical inputs.

Supporting Small Farmers and Market Stability

A key aspect of this project is its focus on assisting small-scale farmers. By supplying necessary materials at controlled prices, the government aims to reduce the financial burden on these farmers and prevent annual price fluctuations. The project is structured such that while the state-owned enterprises will handle production of essential supplies, the actual poultry farming will remain in the hands of private farmers.

Economic and Social Impact

This strategic investment is expected to have multiple positive outcomes for Indonesia's agricultural sector. It will help stabilize food supply chains, support small farmers, and potentially reduce reliance on imported agricultural products. The project's implementation across 30 planned locations, with 13 being developed in the first phase, demonstrates the government's commitment to enhancing food security and agricultural self-sufficiency.