🔑 Key Takeaways
- The Indonesian government, through the Ministry of Agriculture, has reaffirmed its commitment to maintain stable livestock feed prices until the end of 2026.
- PT Mitra Boga Global (MBG), a major food industry player, has been urged to actively absorb surplus eggs from local farmers to stabilize producer prices.
- This strategic move aims to protect the welfare of poultry farmers amidst global market fluctuations and ensure national food security remains intact.
JAKARTA, July 15, 2026 – The Indonesian Ministry of Agriculture (Kementan) today renewed the government's pledge to maintain stable livestock feed prices throughout 2026. This policy is an integral part of the government's long-term strategy to ensure food security and protect the livelihoods of millions of farmers across the archipelago. Concurrently, Kementan has specifically called upon PT Mitra Boga Global (MBG), a key player in the national food industry, to increase its absorption of eggs from local farmers.
Prioritizing Feed Price Stabilization in 2026
Minister of Agriculture, Mr. Budi Santoso, stated in a virtual press conference that the government fully understands the challenges faced by farmers, particularly concerning production costs. “Fluctuations in global raw material prices for feed often impose a heavy burden. Therefore, we assure that until the end of 2026, the government will continue to undertake necessary interventions to keep feed prices affordable and stable,” said Minister Santoso. He added that various subsidy schemes and facilities for importing certain raw materials would continue to be optimized.
According to data from the Central Statistics Agency (BPS) as of Q2 2026, feed costs account for up to 70% of the total production costs in the poultry farming industry. “This commitment is not merely a promise; it reflects a national priority. Stable feed prices are the foundation for stable egg and meat prices in the consumer market,” explained Dr. Anita Widya, an agricultural economist from Gadjah Mada University.
The Crucial Role of PT Mitra Boga Global (MBG)
Beyond maintaining feed prices, another recurring challenge is the oversupply of eggs, which can depress prices at the farmer level. To address this, Kementan has directly coordinated with PT Mitra Boga Global (MBG), a large food conglomerate with an extensive distribution network and significant processing capacity. “We are asking MBG to increase its capacity to absorb eggs from small and medium-sized farmers. This is not just about business profit, but also the company's social responsibility to support the national food ecosystem,” Minister Santoso emphasized.
MBG's representative, Ms. Citra Dewi, the company's Operations Director, welcomed the request. “We are always committed to supporting local farmers. In the past few months of 2026, we have increased our volume of fresh egg absorption and plan to expand our partnership programs. This is a win-win situation, where we secure quality supply, and farmers gain market assurance,” explained Ms. Dewi.
Positive Impact for Farmers and the Market
Mr. Joko Susilo, Chairman of the Indonesian Poultry Farmers Association (APUI), expressed his appreciation for the government's and MBG's initiatives. “These steps are very reassuring for us farmers. The guarantee of stable feed prices and a certain market for our eggs provides the business certainty we desperately need,” said Mr. Susilo. He hopes this synergy can continue and serve as an effective model of collaboration between the government, private sector, and farmers.
The government hopes this policy will not only stabilize farmers' incomes but also keep food price inflation in check, especially ahead of major religious holidays at the end of 2026.
Frequently Asked Questions (FAQ)
- 1. What is the government's primary goal in maintaining feed prices in 2026?
- The primary goal is to protect farmers' welfare from production cost fluctuations and ensure stable prices for animal food products like eggs and meat in the consumer market, supporting national food security.
- 2. How does PT Mitra Boga Global (MBG) play a role in this initiative?
- MBG is tasked with increasing its capacity to directly absorb eggs from local farmers, especially small and medium-sized ones, to address oversupply and stabilize prices at the producer level.
- 3. What are the long-term benefits of this government-private sector synergy for the poultry industry?
- This synergy is expected to create a more stable and sustainable poultry ecosystem, reduce financial risks for farmers, encourage investment, and ensure an adequate and affordable food supply for the public.
