Indonesia's 2026 Free Nutritious Meal Program to Boost Poultry Sector

Significant Budget Increase

The Indonesian government has announced a substantial budget allocation of Rp 335 trillion for the Free Nutritious Meal Program (MBG) in 2026, representing a significant increase from the Rp 171 trillion allocated in 2025 ¹

Positive Impact on Poultry Sector

Financial Expert Ratih Mustikoningsih from Ajaib Sekuritas notes that the increased budget reaffirms the government's commitment to MBG as a priority program. This development is likely to have a positive ripple effect on the primary food sector, particularly the poultry industry ¹

Investment and Financing Opportunities

Danantara is set to invest in the poultry sector starting January 2026, with plans to provide capital and act as an offtaker. The company has allocated up to Rp 20 trillion for financing poultry farmers through a partnership scheme. This initiative is expected to drive demand for DOC and animal feed, benefiting major poultry emitters ¹

Analyst Insights

Analysts from various securities firms have expressed optimism about the program's potential impact:

1. Abida Massi Armand from BRI Danareksa Sekuritas believes that the program will help stabilize commodity prices such as chicken meat and eggs by absorbing excess supply ²
   Source 2

   https://investasi.kontan.co.id/news/mbg-dinilai-mampu-stabilkan-harga-komoditas-saham-ini-yang-berpotensi-cuan
   .
2. Harry Su from Samuel Sekuritas Indonesia states that MBG will act as a positive catalyst for poultry companies by solidifying demand, particularly during economic slowdowns ³
   Source 3

   https://investasi.kontan.co.id/news/emiten-unggas-berpotensi-diuntungkan-program-mbg-tahun-2026-ini-analisanya
   .

Market Implications

The increased demand driven by MBG is expected to positively impact poultry emitters through:

• Increased sales volume
• Improved profit margins
• Better demand forecasting
• Reduced biological losses due to culling