Indonesian Agriculture Ministry Sets New Floor Price: Live Bird Rates Hit Rp19,500/Kg From July 15, 2026 – Will It Stabilize the Poultry Market?

JAKARTA – The Ministry of Agriculture (Kementan) of the Republic of Indonesia has officially announced the establishment of a new reference price for live broiler chickens (livebird) at the farm level, effective July 15, 2026. This decision comes as a direct response to market volatility that has led to a significant drop in chicken selling prices at the producer level in recent months, causing substantial losses for thousands of farmers across the nation.

The newly set reference price of Rp19,500 per kilogram is expected to serve as a “price floor” to protect farmers from extreme fluctuations and ensure they receive a fair margin. This policy is part of the government's efforts to maintain stability in the national poultry sector, which is a key pillar of food security.

Addressing Farmers' Plight: Prioritizing Welfare and Food Availability

The Minister of Agriculture, Mr. Andi Permana, explained in a press conference held in Jakarta that this step reflects the government's commitment to farmer welfare. “We have heard the aspirations and pleas of farmers who have been pressured by unreasonably low selling prices. Setting this Rp19,500/Kg reference price is not just about a number; it is about the livelihood and future of thousands of farming families,” stated Minister Permana.

He added that excessively low prices could discourage farmers from producing, which in turn risks threatening national food supply. “The balance between production and consumption must be maintained. With stable prices, farmers will be more motivated to uphold the quality and quantity of their production,” he affirmed.

Market Reaction and Future Challenges

The Chairwoman of the National Independent Poultry Farmers Association (APUM), Ms. Dian Kusuma, welcomed the policy. “This is a breath of fresh air for us. For too long, prices often below the cost of production have devastated us. With this reference price, there is at least greater certainty,” said Ms. Dian. However, she also urged the government to ensure effective implementation on the ground, preventing it from being merely a regulation on paper.

On the other hand, food economy observer from Gadjah Mada University, Dr. Budi Santoso, Ph.D., cautioned that this policy must be accompanied by strict oversight of the supply chain. “An increase in farm-gate prices will certainly have implications for retail prices. The government needs to ensure that no parties exploit the distribution chain excessively, thereby not unduly burdening the public,” explained Dr. Budi.

Dr. Budi predicted that in the short term, consumers might see a slight increase in chicken prices in traditional markets and modern retail. However, he expressed hope that this increase would be reasonable and would not trigger significant inflation, given that the primary goal is stabilization, not a drastic price hike.

Further Steps for a Sustainable Industry

Kementan stated it would continue to monitor the policy's implementation and market conditions regularly. Coordination with various stakeholders, including farmers, distributors, traders, and relevant associations, will be strengthened to ensure equitable price stability for all parties. Supporting programs, such as improving production efficiency and supply chain management, will also continue to be promoted to build a more resilient and sustainable poultry industry in the future.