"Six downstream projects will start the groundbreaking on February 6, including the chicken farm project," he said in Jakarta on Tuesday.
Previously, Danantara announced a Rp20 trillion (US$1,1 billion) investment plan to build an integrated broiler and layer chicken farm.
The groundbreaking ceremony was initially scheduled for January 28, 2026, but was postponed.
The Minister of Agriculture and Head of the National Food Agency (Bapanas), Andi Amran Sulaiman, on January 22 said the construction of the broiler and layer chicken farm is intended to support the Free Nutritious Meal (MBG) program and strengthen national food security and self-sufficiency.
Furthermore, the construction of a feed factory and the production of day-old chicks (DOC) is also intended as a permanent solution to address fluctuating prices for chicken eggs and DOCs in the market.
According to him, this step also aims to improve the welfare of farmers, strengthen the supply chain, reduce production costs, and encourage sustainable regional economic growth.
The funding provided by Danantara is part of a larger food downstreaming plan and will involve several state-owned enterprises in the food sector, namely PT Perkebunan Nusantara III (Persero) and PT Berdikari.
Through the involvement of state-owned enterprises, the government ensures certainty for farmers, covering seeds, supply chains, and product marketing, preventing prices from being determined solely by free-market mechanisms, which often disadvantages small farmers and producers.
Integrated chicken downstreaming is also expected to become a modern production model where the processes of breeding, feeding, cultivation, processing, and distribution are carried out in a single system.
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Translator: Arnidhya Nur Z, Resinta Sulistiyandari
Editor: M Razi Rahman
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