Divya Karyza, Jakarta – Agriculture Minister Andi Amran Sulaiman has announced plans to establish new poultry and broiler farms in regions where food prices, particularly eggs and chicken meat, exceed the government's reference rate.
The minister attributed the surge in national broiler egg and meat demand to the government's free nutritious meal program. He estimated that the program would require an additional 700,000 tonnes of eggs and 1.1 million tonnes of chicken meat to meet demand.
"Consequently, this initiative is providing an extraordinary boost to our economy," he said during an online inflation-control coordination meeting with regional leaders on Tuesday.
"It is a quintessential example of the people's economy and the Pancasila economy, a vision consistently championed by President Prabowo Subianto."
The minister expects the establishment of new poultry farms to create jobs for around 1.4 million people.
Amran said the government would map regions with high egg prices to determine suitable sites for new layer farms, a strategy he described as crucial to achieving more equitable production and price stability nationwide.
"We will identify wherever prices are high and establish poultry farms there," he added.
Data from Bank Indonesia's National Strategic Food Price Information Center (PIHPS) show that egg prices in several provinces continue to trade above the government's benchmark.
As of Nov. 4, prices in provinces such as West Sumatra, South Sumatra, Banten and Yogyakarta ranged between Rp 28,000 (US$1.67) and Rp 29,900 per kilogram, still above the farmer-level reference price of Rp 26,500 per kg as stipulated in National Food Agency Regulation No. 5/2022.
The free meals program has driven a surge in demand for eggs and chicken, contributing significantly to monthly inflation in October 2025, according to data from Statistics Indonesia (BPS).
Pudji Ismartini, BPS deputy for distribution and services statistics, said demand for the two commodities had risen sharply since the program began several months ago.
BPS data show that broiler chicken eggs and meat were the main drivers of inflation in the volatile food category in October.
Eggs recorded a 4.43 percent month-on-month (mom) inflation rate, contributing 0.04 percentage points to overall inflation, while broiler chicken meat saw 1.13 percent inflation, contributing 0.02 percentage points.
Pudji attributed the price increases to growing demand from the program's Nutrition Fulfillment Service Units (SPPGs), which source their supplies from local markets and retailers.
"This is one of the indicators of rising demand for eggs and chicken," she added.
She also noted that production costs for broiler chickens had been rising, including prices for day-old chicks (DOC), live birds and feed corn in several regions.
However, Pudji clarified that BPS "does not calculate inflation directly attributed to the [free meals] program," adding that inflation in areas associated with the program could not be specifically identified in the agency's data.
The consumer price index (CPI) rose to 109.04 in October from 106.61 a year earlier, translating to headline inflation of 2.86 percent year-on-year (yoy), according to the BPS.
The increase was mainly driven by the food, beverages and tobacco category, which climbed 4.99 percent yoy, led by red chili peppers, the single largest contributor to the gain.